Defence investments shift focus: Vidarbha rises as Maharashtra’s new hub

thenewsdirt
1 day ago
6 min read

In recent years, Maharashtra’s eastern Vidarbha region has drawn unprecedented attention from government and industry, aiming to boost local defence manufacturing. Several high-value projects have been announced around Nagpur and nearby areas, reflecting state officials’ intent to treat Vidarbha as a new hub.

At the same time, western Maharashtra, centred on Pune, Nashik and Mumbai, continues to host most of the state’s established defence industry.

This article examines the investments and initiatives in Vidarbha and contrasts them with the long-standing centres elsewhere in the state, using official announcements and industry reports.

Vidarbha’s emerging role is set against the backdrop of Maharashtra’s mature military-production clusters and new government plans.

Vidarbha’s Emerging Defence Hub

Vidarbha (Nagpur and adjoining districts) is now home to a string of recently announced defence projects. In January 2025, Maharashtra signed memoranda of understanding totalling about ₹27,432 crore, all earmarked for projects in Vidarbha.

One was a ₹12,780 crore ‘anchor’ aerospace and defence project by Solar Industries (through its subsidiary), to be built near Nagpur.

In mid-2025, the state sealed a major deal with Max Aerospace: an ₹8,000 crore helicopter plant in Nagpur, creating roughly 2,000 jobs. The Maharashtra Airport Development Company later approved 220 acres at Nagpur’s MIHAN industrial zone for Solar Defence & Aerospace Ltd to build a ₹12,700 crore manufacturing complex.

Solar Industries, already a maker of rocket propellants (such as Pinaka) and ammunition, plans to expand into new missile and artillery products for these Nagpur plants.

Local industry groups have also moved quickly. The Vidarbha Defence Industrial Hub (VDIH), a Nagpur-based non-profit started by a retired Army officer, facilitated deals bringing foreign technology to the region.

In 2021, VDIH helped broker an agreement for a Czech firm to build tank power-pack (engine) components in Nagpur, with an initial investment of ₹25 crore. A similar MoU saw Slovak partners supplying advanced excavator equipment to BEML (an Indian defence PSU) in Vidarbha. These partnerships are aimed at cutting India’s import dependence on such hardware.

Even foreign investors have taken notice of Vidarbha’s potential. During a 2025 visit to Nagpur, Sweden’s consul-general remarked that Saab AB “is likely to expand its operations in Vidarbha, considering its business potential and geographical advantage”.

Saab’s entry, known for aircraft and missile systems, could “catapult Nagpur onto India’s defence manufacturing map”, he said, leveraging the region’s central location. In summary, Vidarbha has amassed dozens of thousands of crores of proposed investment since 2024.

These plans include ammunition, aircraft components, helicopters and explosives manufacturing, all centred on Nagpur’s infrastructure and labour pool.

Established Defence Hubs in the State

By contrast, western Maharashtra has long been the centre of the state’s defence industry. The Pune-Mumbai belt hosts most of Maharashtra’s military research and production.

For example, Pune district contains multiple Defence Research and Development Organisation (DRDO) laboratories and the National Defence Academy.

Major private contractors like L&T, Tata, Bharat Forge and Mahindra have defence manufacturing units there. Aurangabad and Ahmednagar provide additional capacity: Aurangabad has Greaves Cotton (military engines), and Ahmednagar has a DRDO vehicle research lab.

Nashik and the surrounding areas also form an established corridor. Nashik is home to a Hindustan Aeronautics Limited (HAL) helicopter overhaul depot and engine assembly. Local leaders note that Nashik already hosts a defence PSU like HAL and several component units. In mid-2025 the state chief minister announced plans to develop Nashik into a dedicated defence and aerospace cluster.

A new access-controlled road to connect Nashik with the Mumbai–Nagpur expressway is planned, forming a future “defence corridor”. Industries in Nashik see this as a natural extension of their existing role in supplying aircraft and missiles.

The coast is also pivotal: the Mazagaon Dockyards in Mumbai build many of India’s major warships and submarines.

Although not in Vidarbha, this naval yard demonstrates Maharashtra’s strategic role in national defence. Numerous ordnance factories (munitions plants) across the state supply weapons and ammunition. In short, Maharashtra’s older hubs, Pune, Nashik, Mumbai, etc., collectively handle most defence production and R&D.

Vidarbha’s nascent projects are striking additions to this landscape, but even together they remain smaller in scale than the combined investment in the western clusters.

Government Policies and Industry Initiatives

The Maharashtra government has actively sought to boost the state’s defence sector under its “Make in India” approach. It was the first Indian state (in 2017) to institute a formal Aerospace and Defence policy.

In 2024, the policy was being revised with fresh incentives. At a state defence expo in Pune, officials announced plans for four new defence manufacturing clusters, including one at Nagpur in Vidarbha and others at Shirdi, Pune and Ratnagiri.

These announcements signal that Vidarbha is being singled out for development alongside traditional areas.

Other infrastructure proposals are under consideration. For example, policymakers have discussed designating the new Mumbai–Nagpur Samruddhi highway as a defence industry corridor, aiming to link Vidarbha’s factories with ports.

In 2018, the state allocated 20 acres at the Nagpur MIHAN airport for a “Vidarbha Defence Industrial Hub” to make aircraft parts, expecting tens of thousands of jobs. Some planned projects have faced delays or funding issues: a proposed Centre of Excellence for aerospace training at Nagpur (budgeted at about ₹92 crore) was put on hold when the previous government withheld its contribution. Similarly, a Nagpur fertiliser plant with defence applications has been in the pipeline.

These initiatives, policies, clusters, and infrastructure plans demonstrate official intent to integrate Vidarbha into the defence ecosystem. A key goal is to distribute investment more evenly: Maharashtra’s industries minister has emphasised that Vidarbha’s available land and transit links (via the Samruddhi Expressway) make it suitable for factories. At the same time, the state continues to support existing centres.

The 2024 defence expo included participation from numerous Pune- and Nashik-based companies to connect them with new vendors.

Overall, the government’s actions reflect a desire to narrow the development gap between Vidarbha and Maharashtra’s western defence heartland, aligning local advantages with national defence goals.

International and Industry Perspectives

Beyond government declarations, comments from industry and global observers underline Vidarbha’s changing profile. '

Defence analysts note that investors are now weighing Vidarbha’s low land costs and central logistics. For instance, after Japanese and Italian ties expanded in Pune, attention turned eastward.

A 2025 visit by Swedish officials was described as a “cutting-edge business push” for Nagpur, with one Swedish executive citing Mihan’s potential. Local industry associations have likewise pitched Vidarbha as investment-friendly, emphasising its mineral resources and existing aviation infrastructure.

To date, the scale of defence investment in Vidarbha is small compared to Pune/Nashik. Older industries have already launched multi-year production.

However, new projects like the helicopter plant have foreign OEM interest. Max Aerospace is reportedly in talks with global helicopter manufacturers.

Solar Industries in Nagpur is joining the supply chains for rockets and shells that were earlier sourced from elsewhere. Vidarbha-based entrepreneurs and veterans argue that a local industry cluster is forming, backed by the VDIH network and state promotion.

They point out that central leaders, including the Army Chief, have engaged with Vidarbha enterprises to align products with IAF needs.

Vidarbha’s defence sector is rapidly expanding from a low base. Recent MoUs and factory proposals have made it a visible target for future investment.

In contrast, West Maharashtra’s defence ecosystem remains far more mature. The coming months will test whether Nagpur and its surroundings can convert announcements into operating plants. Local officials say planning is underway; analysts observe that global trends (supply chain diversification, Make-in-India mandates) could sustain interest in new hubs.

For now, Vidarbha has moved onto the map of Maharashtra’s defence industry. Its share of the state’s defence investment is still small, but rising, and that shift may alter the geography of Indian defence production in the long run.