SARGAD and Telangana Seal $100M MoU for Aerospace Manufacturing

At the World Economic Forum, SARGAD LLC and the Government of Telangana signed a Memorandum of Understanding to launch AeroNxt, a new initiative aimed at strengthening India’s aerospace and defense manufacturing ecosystem.

The MoU was signed at the India Pavilion during the WEF Annual Meeting 2026, marking a major step toward building globally competitive supply chain capabilities.

Under AeroNxt, SARGAD plans to deploy up to $100 million USD (around ₹1000 Crore) in Telangana’s aerospace and defense sector over the coming years. The initiative is designed to address growing global supply chain gaps as air travel expands and demand rises for new aircraft and long-term sustainment. OEMs are increasingly looking for reliable, cost-competitive partners that can deliver quality at scale.

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Backed by senior global executives with decades of leadership across major aerospace and defense programs, AeroNxt will focus on modernizing MSMEs, enabling high-precision manufacturing of components, sub-systems, and structures, improving access to global OEMs and tiered suppliers, and building an MRO Centre of Excellence for aerospace components.

"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," said Srinivas Thota, Founder & CEO of SARGAD.

The initiative will be pursued through SARGAD’s Industrial Investment Platform and builds on Telangana’s strong ecosystem, anchored by HAL, DRDO, BDL, Tata ASL, and Cyient. Through AeroNxt, the partnership aims to drive exports, create jobs, upgrade skills, modernize MSMEs, and support Atmanirbhar Bharat goals through deeper private sector participation.