Karnataka Approves Aerospace Policy 2026-31 and Jobs Measures

Key facts

• The Karnataka Cabinet approved the Karnataka Aerospace Policy 2026-31, targeting investments of Rs 60,000 crore and creation of 60,000 jobs, covering aerospace, defence manufacturing, aviation, space technologies, drones and avionics across the state with differentiated incentives for focus and non-focus areas.
• The Cabinet approved the Udyoga Nidhi scheme for 10 backward districts of north Karnataka, offering industries Rs 2,500 per new worker per month for two years, with about Rs 300 crore provisioned.
• The New Textile and Readymade Garments Policy 2026-31 targets Rs 20,000 crore investment over five years, with credit-linked capital subsidy, power subsidy and 33 focus taluks identified.
• The Chief Minister 'Negila Yogi' scheme, with an outlay of Rs 152.28 crore, will provide free ploughing using rented tractors for farmers owning up to three acres, piloted in 31 taluks.
• A drone testing facility will be set up at Jedarahalli in Chintamani taluk, Chikkaballapur district, at a cost of Rs 42.83 crore, and a Karnataka Artificial Intelligence Hub at IIIT-Bengaluru at Rs 35 crore.
• Student union elections will be revived in colleges and universities from the 2026-27 academic year, with posts including a president, two vice-presidents (one reserved for women), a general secretary and two joint secretaries (one reserved for women), and no caste-based reservation.
• The Shakti Smart Card project for KSRTC was approved at Rs 237 crore to identify women beneficiaries of the Shakti scheme.
• The state-wide Tega Siri tree development programme was approved at Rs 493.09 crore, under which farmers growing teak trees will receive 70 per cent of harvest proceeds.
• Karnataka has estimated drought losses of around Rs 18,000 crore across 101 declared drought-affected taluks and will seek assistance from the Centre under NDRF guidelines.