Andhra Pradesh has laid the foundation for India’s first Drone City and Space City, aiming to become a leader in advanced technology and innovation. The foundation stones were virtually unveiled by Chief Minister N. Chandrababu Naidu and Union Commerce Minister Piyush Goyal during the 30th CII Partnership Summit held in Visakhapatnam. This historic move is expected to transform the state into a hub for drone technology, satellite development, and space-related industries, creating numerous job opportunities and attracting significant investment.

Building a Hub of Innovation

Drone City is being developed across 300 acres in Orvakal, Kurnool district. It is envisioned as an integrated international hub for drone research and manufacturing, equipped with parks for designing and making drones, as well as advanced facilities for testing and certification. Notably, the city will focus on skill development, with a target to train 25,000 remote pilots, reflecting the rising demand for drone expertise worldwide. This ambitious effort comes with substantial support from the state government, including a 20% capital subsidy and full SGST reimbursement for investors, intending to attract broad stakeholder participation and investment. The larger vision is to make Andhra Pradesh a leading player in India’s drone industry by fostering innovation and ensuring that cutting-edge technology reaches every corner of the state.

Further bolstering the state’s tech credentials, the establishment of Twin Space Cities in Sri Sathya Sai and Tirupati districts aims at catalysing India’s private sector participation in the space arena. These facilities will serve as incubators for space-tech startups, support the manufacture of satellite components, develop satellite prototypes, and manage launch logistics. Andhra Pradesh expects these Space Cities to draw investments totalling ₹25,000 crore, while also creating 35,000 jobs in the next ten years.​

Massive Boost for Jobs and Investments

The technological leap in Andhra Pradesh is also seen as a powerful engine for job creation. Drone City and its extended ecosystem are projected to directly and indirectly generate more than 40,000 jobs, including opportunities for highly skilled engineers, technicians, and drone operators. The government’s incentives, such as a dedicated SpaceTech Fund of ₹100 crore, R&D grants, stamp duty waivers, and 50 planned Centres of Excellence across the state, are designed to foster a culture of research, skill-building, and entrepreneurship.​

For the space sector, the government’s vision is equally huge. With policy support from the new Andhra Pradesh Space Policy 4.0 (2025–2030), the Twin Space Cities will focus on developing a strong ecosystem for private innovation in satellite technology. By prioritising both physical infrastructure and ecosystem-level interventions, the state is looking forward to supporting advanced manufacturing, pioneering research, and a new generation of companies that can contribute to India’s growing ambitions in space science and applications. These efforts are also closely aligned with the broader Swarna Andhra 2047 and Viksit Bharat 2047 development goals advocated by the central government.​

Partnerships, Vision, and the Road Ahead

A vital part of Andhra Pradesh’s strategy is to form strong partnerships with private firms and research organisations. For the Space Cities, the government has inked agreements with companies such as Blue Space and Eternal Exploration Guild, while Drone City is being supported by partnerships with Algobotics, Akin Analytics Solution, Senselmage, and Airpace Industries. These collaborations are expected to bring global expertise, advanced technologies, and high-value jobs to the state. Union Commerce Minister Piyush Goyal praised Chief Minister Naidu’s leadership and vision, observing that the launch of such projects places Andhra Pradesh at the forefront of India’s technology revolution.

The state’s ambitions go even further, with plans to launch Quantum Valley in Amaravati by January 2026. This will position Andhra Pradesh as a leader not only in aerospace and drones but also in quantum computing, artificial intelligence, and green hydrogen, drawing top-tier talent and investments from around the world. Quantum Valley, being built in collaboration with leading firms like IBM, TCS, L&T, and LTIMindtree, will provide access to cutting-edge quantum computers and act as a world-class innovation destination. The sustained push for emerging technologies and strategic global partnerships is expected to accelerate the transformation of Andhra Pradesh into a well-rounded, future-ready economy.​

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