New Delhi, September 4, 2026 — Global defence major Thales and Kalyani Strategic Systems Limited (KSSL), the wholly owned defence subsidiary of Bharat Forge Limited, have signed a Strategic Alliance Agreement to establish indigenous manufacturing capability for 70-mm rocket systems in India. The pact covers both unguided and laser-guided variants already in service with the Indian Armed Forces and targets the first fully assembled rocket produced in the country by early 2027.
The agreement was concluded on September 3, 2026, during the official visit of Belgian Prime Minister Bart De Wever to India. It forms part of a broader package of industrial and defence understandings between the two nations.
Under the alliance, Thales will contribute its established expertise in 2.75-inch/70-mm rockets and launchers developed at its Belgian facilities. KSSL will employ its manufacturing, integration and testing infrastructure, including an upcoming energetics facility in Andhra Pradesh, to produce and integrate components drawn from Thales’ qualified supply chain while maintaining international quality standards.
The collaboration provides a framework for technology transfer, local production, distribution and associated equipment. The companies intend to develop a robust domestic supply chain and position India as a manufacturing and export hub for these systems. Belgian officials have noted that the arrangement is reciprocal: India builds production capacity while Thales obtains an additional source of supply for international orders, thereby also supporting European security of rocket supply.
The systems in question include the FZ275 laser-guided rocket and the FZ90 unguided Folding Fin Aircraft Rocket. These munitions have been operational with the Indian Army and Indian Air Force since the 2010s and are integrated on rotary-wing platforms such as the HAL Rudra (ALH-WSI) and Prachand Light Combat Helicopter. Thales states that its 70-mm family has been delivered in more than eight million units to 70 armed forces across 55 countries and can be employed from air, land and maritime platforms. Advanced variants are increasingly applied to counter-drone missions.
Ankur Kanaglekar, Vice-President – India at Thales, said: “Thales has partnered with India for decades and this collaboration with KSSL is a testament to our deep and long-standing engagement with the local defence ecosystem. By combining our combat-proven 70mm rocket expertise from Belgium with KSSL’s engineering and manufacturing strengths, we are co-creating capabilities that will enhance India’s operational readiness and advance its vision of self-reliance in critical defence technologies.”
Neelesh Tungar, Chief Executive Officer of Kalyani Strategic Systems, stated: “By combining Thales’ proven technologies with Kalyani Strategic Systems’ advanced industrial ecosystem including our upcoming Energetics facility in Andhra Pradesh, this strategic partnership lays the foundation for indigenous production of next-generation rocket systems. Beyond strengthening the operational readiness of the Indian Armed Forces, it advances the vision of ‘Make in India for the World,’ positioning India as a globally competitive hub for advanced defence technologies.”
The agreement continues a pattern of Thales engagement with Indian industry on the same product family. Earlier memoranda or agreements were signed with Bharat Dynamics Limited in 2023 and Adani Defence and Aerospace in 2024. The addition of KSSL creates a broader set of potential Indian industrial partners for recurring domestic demand and possible exports.
The alliance aligns with India’s Atmanirbhar Bharat and Make in India objectives by localising a combat-proven munition already fielded on indigenous helicopters. It simultaneously deepens India-Belgium defence-industrial ties at a time of elevated global demand for 70-mm rockets. Production of the first Indian-assembled unit is scheduled for early 2027, after which the partners expect to scale output for both national requirements and international customers.
