Indian firms are increasingly making strides in the global aerospace industry, with major players like Airbus, Collins Aerospace, Pratt & Whitney, and Rolls-Royce expanding their sourcing of parts from India. This is boosting the country's emerging aerospace sector and pushing local companies to improve their capabilities.

Western plane and engine manufacturers are looking to India as a solution to supply chain issues, which have caused strikes, production caps, and parts and labour shortages since the pandemic. These manufacturers aim to meet the rising demand for air travel by sourcing more from India.

Bangalore-based Hical Technologies, a supplier to Boeing and Raytheon Technology, is aiming to double its aerospace division revenue to 5 billion rupees ($57.57 million) within three years.

JJG Aero, also located in Bangalore, witnessed substantial growth, increasing its revenue from $2 million to $20 million in the last six years.

The Indo-Pacific aerospace sector is experiencing a surge, with projected 2024 revenue expected to be 54% higher than 2019 levels, while North America and Europe are projected to be 3% and 4% lower, respectively.

Huw Morgan, senior vice president for aerospace procurement at Rolls-Royce, stated that India is the best solution to supply chain challenges. He also noted that traditional supply chains cannot support their engine volume growth of around 20% and that India is the best cost market. Rolls-Royce plans to double its sourcing from India within five years.

Indian firms are moving beyond basic manufacturing to higher-value activities like design, engineering, and system integration.

Airbus has increased its contracts with Indian suppliers, with every Airbus commercial aircraft containing parts or components made in India. Airbus's overall supply chain in India is currently contributing over 1 billion euros and is expected to double. Airbus awarded its second aircraft door contract within a year to Indian suppliers. They estimate that India contributes more than 1 billion euros to the overall Airbus supply chain, expecting to double that amount.

India's civil aviation ministry is focused on boosting component manufacturing, including local sourcing of raw materials like aluminium, steel and titanium.

The Indian aerospace industry is projected to capture 10% of the global supply chain market within a decade, with the global market estimated to reach $250 billion annually by 2033.

The Indian government is aggressively pursuing self-reliance in defence manufacturing through initiatives like ‘Make in India’ and ‘Atmanirbhar Bharat,’ encouraging private-sector participation and domestic production.

India is the world's third-largest domestic aviation market, experiencing rapid growth that drives demand for maintenance services and parts. This growth is fuelled by substantial aircraft orders from IndiGo and Air India. Historically, domestic airline capacity in India has grown faster than international capacity, with an average annual growth of 8.7% between 2005 and 2024.

Indian firms are progressing beyond basic manufacturing in the global aerospace industry to engage in higher-value activities like design, engineering, and system integration. Airbus has recognized this potential, awarding its second aircraft door contract within a year to Indian suppliers in 2024. According to Michel Narchi, head of international operations at Airbus, India contributes over 1 billion euros to the overall Airbus supply chain, and this is expected to double, with every Airbus commercial aircraft containing parts or components made in India.

The Asia-Pacific aerospace sector is experiencing a surge, with projected 2024 revenues 54% higher than 2019 levels, while North America and Europe remain 3% and 4% lower, respectively.

Factors Driving Growth

Massive aircraft orders from IndiGo and Air India are fuelling growth across the aviation ecosystem.

Aero India 2025 is expected to further India's global presence in the aerospace sector, showcasing the nation's growing capabilities and attracting foreign direct investment.

The growth of airlines and passenger traffic in India has been rapid, with passenger numbers increasing from around 70 to 200 million in the past 10 years.

India is emerging as a strategic partner for companies like Airbus, Safran and Dassault, which aim to strengthen their position in the Asian market.

The MRO (Maintenance, Repair, and Overhaul) market in India is expected to reach $4 billion by 2025.

The Aerospace and Defence (A&D) market in India is estimated to reach around $70 billion by 2030.

 A key step towards real value addition would be the local sourcing of raw materials such as aluminium, steel, and titanium, potentially leading to the certification of designs made by Indian suppliers.

NDTV Report