SARGAD, Telangana Sign $100M Aerospace, Defence MOU

• SARGAD LLC & Telangana signed an MOU to invest $100 million USD in modernizing India’s aerospace and defense sector
• Focus on MSME modernization, high-precision manufacturing, and establishing an MRO Center of Excellence
• Boosts job creation, skills development, and export growth, supporting India’s Atmanirbhar Bharat vision

At the World Economic Forum 2026, the Indian company SARGAD LLC and the Government of Telangana sealed a deal through a Memorandum of Understanding (MOU) to set in motion AeroNxt, a revolutionary program aimed at upgrading the whole Indian aerospace and defense manufacturing ecosystem.

The MOU which was signed at the India Pavilion, is a precursor to SARGAD’s input of up to $100 million USD into the Indian aerospace and defense industry in Telangana over the coming years.

The AeroNxt program is going to help the aerospace industry to overcome some of the most critical supply chain difficulties which are going to be created by the growing popularity of global air travel and the inflating demand for new aircraft and their maintenance.

To handle this growth and at the same time lessening supply chain uncertainties, Original Equipment Manufacturers (OEMs) are searching more and more partners who are reliable and economical.

The project has the support of a group of senior global executives with vast experience in aerospace and defense who will be the driving force behind the significant advances in India’s manufacturing sector.

Also Read: India, EU Launch Security & Defence Partnership, Trade Deal

AeroNxt is a company that has set four priorities: the modernization of MSMEs (the smallest companies); developing capabilities to precision manufacture parts, sub-systems, and structures for new generation aviation and defense programs; making possible connections to the global original equipment manufacturers (OEMs) and tiered suppliers; and creating a Center of Excellence for Maintenance, Repair, and Overhaul (MRO) of aerospace components.

Sri Thota, Founder & CEO of SARGAD LLC stated, “Global aerospace supply chains are shifting toward trusted, cost-competitive suppliers with quality manufacturing and design capabilities, with the ability to supply reliably at scale. India has the engineering talent and the strategic positioning. This partnership with the Government of Telangana is about selectively investing in MSMEs, building capabilities in high-precision mechanical and electronic components and software, and supporting the needs of aircraft manufacturers and Tier 1 suppliers globally”.

With the harnessing of the industrial strength of Telangana, which has significant players such as HAL, DRDO, BDL, Tata ASL, and Cyient, in addition to the trained labor and policies that are encouraging, AeroNxt is ready to contribute to output growth through job creation, skills development, and exports.

This cooperation is in line with India’s Atmanirbhar Bharat dream as it not only helps the government realize the dream but also attracts the private sector into the aerospace and defense capability building domain.