Global aerospace and defence technology major Thales said the proposed policy support for aero components manufacturing, rising defence expenditure and expansion of aviation infrastructure will strengthen India’s manufacturing ecosystem.

Speaking to businessline, Ankur Kanaglekar, Vice President – India at Thales, said a production-linked incentive (PLI) scheme for component manufacturing could encourage both domestic and global firms to expand manufacturing activity in India.

According to Kanaglekar, the Union Budget 2026–27 allocation of ₹7.85 lakh crore for defence, marking a 15 per cent increase over the previous year, reflects continued emphasis on modernising and strengthening the armed forces.

Similarly, customs duty exemptions on aircraft components, parts and raw materials used in maintenance, repair and overhaul (MRO) activities, Kanaglekar said, indicate sustained policy backing for aerospace manufacturing.

Besides, he added that Thales plans to deepen partnerships with Indian industry while continuing investments in artificial intelligence and cyber technologies.

On the civil aviation side, India’s aviation market is expected to sustain growth, driven by passenger traffic expansion, fleet additions, airport modernisation and rising MRO demand.

As per government estimates passenger traffic could grow six-fold to around 1.1 billion by 2040, while India’s aircraft MRO market may reach $4 billion by 2031.

Kanaglekar cited that the modified UDAN scheme, running from 2026 to 2036 with an outlay of Rs 28,840 crore and focused on developing 100 airports from unserved airstrips, could improve regional connectivity while creating opportunities for localisation and technology integration.

Accordingly, Thales has been expanding its aviation portfolio in India across avionics, inflight entertainment, airport operations control centres, Digi-Yatra systems, and air traffic management solutions, with plans for drones and counter-drone technologies.

The company recently supported the induction of Air India’s 787-9 aircraft equipped with Thales’ AVANT Up inflight entertainment platform, making the airline the first in the Asia-Pacific region to deploy the system.

On localisation, Thales’ India strategy is built around “Make in India”, “Innovate in India” and “Export from India”, Kanaglekar said.

The company currently works with more than 75 supply-chain partners across mechanical systems, radar structures, software and hardware development, supporting nearly 2,000 indirect jobs.

Furthermore, India has emerged as an important engineering base for Thales.

At present, Thales employs around 2,400 people in India, with nearly three-fourths engaged in engineering roles across centres in Noida and Bengaluru.

In 2026, Thales plans to  hire around 450 employees across hardware, software and systems roles.

Published on May 10, 2026