Thales, a prominent global aerospace and defense technology company, has emphasized that proposed policy support for manufacturing aerospace components, increased defense spending, and the growth of aviation infrastructure will bolster India’s manufacturing ecosystem.
In an interview with businessline, Ankur Kanaglekar, Vice President of Thales India, noted that the implementation of a production-linked incentive (PLI) scheme for component manufacturing could motivate both domestic and international firms to enhance their manufacturing activities within India.
Kanaglekar highlighted the Union Budget allocation of ₹7.85 lakh crore for defense in the fiscal year 2026–27, representing a 15% increase from the previous year. This reflects the government’s ongoing commitment to modernizing and strengthening the armed forces. Furthermore, he pointed out that customs duty exemptions on aircraft components, parts, and materials essential for maintenance, repair, and overhaul (MRO) services signify a persistent policy commitment toward aerospace manufacturing.
Thales intends to deepen its partnerships with the Indian industry while continuing investments in artificial intelligence and cyber technologies. On the civil aviation front, the Indian aviation market is poised for sustained growth, driven by increasing passenger traffic, aircraft fleet expansions, airport modernization, and heightened demand for MRO services.
Government projections estimate that passenger traffic could increase six-fold to approximately 1.1 billion by 2040, and India’s aircraft MRO market could reach $4 billion by 2031. Kanaglekar mentioned the modified UDAN scheme, which is set to run from 2026 to 2036 with an outlay of Rs 28,840 crore. This program targets the development of 100 airports from unserved airstrips and aims to enhance regional connectivity while fostering localization and technology integration.
Thales is expanding its aviation portfolio in India, focusing on areas such as avionics, inflight entertainment, airport operations control centers, Digi-Yatra systems, and air traffic management solutions, with future plans for drones and counter-drone technology. The company recently supported the integration of Air India’s 787-9 aircraft, featuring Thales’ AVANT Up inflight entertainment platform, marking Air India as the first airline in the Asia-Pacific region to utilize this system.
On the localization front, Thales’ strategy in India emphasizes “Make in India,” “Innovate in India,” and “Export from India,” according to Kanaglekar. The company collaborates with over 75 supply-chain partners involved in mechanical systems, radar structures, software, and hardware development, supporting nearly 2,000 indirect jobs.
Moreover, India has become a key engineering hub for Thales. Currently, the company employs around 2,400 individuals in India, with nearly three-fourths in engineering positions across its centers in Noida and Bengaluru. Thales anticipates hiring around 450 additional employees in 2026 for roles in hardware, software, and systems.
Published on May 10, 2026.
