Telangana Soars at Davos: $100 Million Deal to Modernize Aerospace Ecosystem
#TelanganaRising #WEF2026 #AerospaceDefense \ #MakeInIndia #SARGAD #AeroNxt #AatmanirbharBharat #AviationNews \ #MSMEGrowth #IndustrialInvestment“This partnership with the Government of Telangana is about selectively investing in MSMEs, building capabilities in high-precision mechanical and electronics components and software, and supporting the needs of aircraft manufacturers and Tier 1 suppliers globally." - Sri Thota, Founder & CEO - SARGAD LLC
January 2026 : In a major win for the "Telangana Rising" vision, the Government of Telangana and US-based industrial platform SARGAD LLC have signed a Memorandum of Understanding (MOU) to inject $100 million USD into the state’s aerospace and defense sector. Signed at the World Economic Forum 2026, the deal establishes AeroNxt, a collaborative initiative designed to transform local MSMEs into world-class suppliers for the global market.
The partnership comes at a pivotal time for the industry. As global air travel rebounds and demand for new aircraft reaches record highs, international manufacturers are shifting their gaze toward India to solve supply chain bottlenecks. AeroNxt aims to fill this gap by focusing on four pillars: modernizing small-scale manufacturers, developing high-precision components, facilitating global market access, and launching a dedicated MRO (Maintenance, Repair, and Overhaul) Center of Excellence.
The initiative leverages Telangana’s massive industrial footprint, which already serves as a home for giants like HAL, DRDO, Tata ASL, and Cyient. By strategically investing in the existing MSME base, the partnership seeks to elevate local capabilities to meet the stringent quality and scale requirements of global Original Equipment Manufacturers (OEMs).
Sri Thota, Founder & CEO of SARGAD LLC, emphasized the strategic advantage of the region: "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 electronics components and software, and supporting the needs of aircraft manufacturers and Tier 1 suppliers globally."
The $100 million investment, roughly equivalent to ₹830 crore, is expected to be deployed over the next several years. Beyond capital, SARGAD brings a leadership team with deep experience in Fortune 200 environments, aiming to bring Silicon Valley-style innovation to Telangana’s manufacturing floors.
Chief Minister A. Revanth Reddy has invited the group to explore Warangal and Adilabad as potential sites for the MRO facility, aligning with the state's plan to decentralize industrial growth. This collaboration not only advances the Aatmanirbhar Bharat mission but also positions Telangana as the primary engine for India's next-generation aerospace exports.
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