Paras Defence and Space Technologies Ltd has entered into a Memorandum of Understanding (MoU) with Cielo Inertial Solutions of Israel to collaborate on the manufacturing and marketing of advanced inertial sensors in India. The partnership aims to scale up domestic production of high-precision Fibre Optic Gyroscope (FOG)-based systems and associated inertial navigation solutions for defence and aerospace applications.

Cielo Inertial Solutions, a prominent player in Israeli defence technology, brings expertise in fibre optic gyroscopes (FOGs), Inertial Measurement Units (IMUs), GyroCompass systems, north-finding devices, and Inertial Navigation Systems (INS). 

These systems are essential for applications where GPS-denied navigation and high-accuracy orientation sensing are required. The MoU will enable Paras Defence to integrate Cielo’s core technologies into indigenous production lines under the ‘Make in India’ initiative.

Inertial sensors, including IMUs and INS, serve as the backbone of modern navigation and stabilisation systems. IMUs measure an object’s acceleration, rotational rates, and orientation, while INS combine data from accelerometers and gyroscopes to calculate position and velocity without external reference signals. These technologies are crucial for guided missiles, unmanned aerial vehicles, satellites, and defence platforms, where maintaining positional accuracy is mission-critical.

Paras Defence, already recognised as India’s only large-scale manufacturer of infrared optics, will expand its technological portfolio by entering the inertial navigation domain through this partnership. 

The company has been a consistent contributor to India’s defence and space programs, supplying optical components, electro-optical systems, and payloads for DRDO and ISRO missions. The tie-up with Cielo further strengthens its position in the precision electronics and sensor ecosystem, a domain expected to see expanded demand across defence and aerospace sectors.

The collaboration aligns with India’s broader effort to localise high-value defence electronics manufacturing, particularly components previously imported from Israel, France, and the United States. The partnership will explore joint production, licensing, and technology transfer opportunities to serve both domestic and export markets, leveraging India’s growing demand for advanced navigation sensors.

According to Crisil Ratings, India’s private defence manufacturing sector is projected to record 16–18% revenue growth in the current fiscal year. This growth is attributed to increased capital expenditure, government procurement under the Atmanirbhar Bharat framework, and strong domestic demand for advanced defence technologies.

Between FY22 and FY25, the sector registered an average 20% compound annual growth rate (CAGR), with operating margins expected to remain steady at 18–19%. Crisil’s analysis covers over 25 private companies representing roughly half of the industry’s total revenue base.

This partnership is expected to enhance India’s self-reliance in critical navigation technologies, enabling integration of domestically produced IMUs and FOG sensors into indigenous missile guidance systems, UAVs, and space platforms. It represents a key step toward reducing foreign dependency in the precision sensing domain and promoting India as a regional hub for inertial navigation systems production.

Based On Business World Report