The Indian government is actively developing a comprehensive strategy to transform the nation into a global hub for aircraft component manufacturing. This initiative represents a significant shift from India's traditional role as an importer of aviation components to potentially becoming a major exporter with estimated revenues of $20 billion over the next decade.

The strategy encompasses regulatory reforms, research and development support, standardization processes, and international certifications to enable Indian manufacturers to integrate seamlessly into global aviation supply chains. The roadmap aims to address critical challenges including testing infrastructure, material sourcing, and certification pathways while leveraging India's existing advantages in skilled labour and manufacturing capabilities.

India's aviation market stands as one of the world's fastest-growing sectors, positioned as the largest domestic aviation market after the United States and China. Despite this robust growth trajectory, the country's aircraft manufacturing capabilities remain relatively underdeveloped compared to its market potential. Currently, Hindustan Aeronautics Limited (HAL), a state-owned enterprise, manufactures small turboprop passenger aircraft, but India has yet to develop its own civilian jet aircraft. This limitation exists despite India operating a fleet of over 700 commercial aircraft, with Indian airlines having placed orders for approximately 1,200 more aircraft from global manufacturers like Airbus and Boeing.

The present export volume of micro-assemblies and components used by airframers is estimated at over $2 billion annually. However, industry experts believe this figure could expand tenfold to $20 billion over a 10-year horizon, generating thousands of high-paying jobs within the country. The Civil Aviation Minister, K Ram Mohan Naidu, has explicitly stated the government's ambition to manufacture aircraft in India on a large scale, not merely to satisfy domestic demand but to position the country as an aircraft exporter in the global market. This vision aligns with India's broader economic strategy of "Atmanirbhar Bharat" or self-reliance, which seeks to reduce dependence on foreign manufacturers while developing indigenous capabilities.

The existing ecosystem includes collaborations with global manufacturers, with Boeing India already working with over 300 Indian suppliers, more than 25 percent of which are MSMEs (Micro, Small, and Medium Enterprises), contributing over $1.25 billion in annual sourcing. This foundation provides a launching pad for more ambitious manufacturing initiatives as India seeks to move up the value chain from component assembly to comprehensive aircraft production.

Government Initiatives And Strategic Planning

The Indian government is implementing a multi-faceted approach to bolster aircraft component manufacturing through institutional mechanisms and policy reforms. A cornerstone of this strategy is the planned establishment of a Special Purpose Vehicle (SPV) to devise and construct a roadmap for developing and manufacturing indigenous commercial aircraft. Civil Aviation Minister K Ram Mohan Naidu has indicated that this SPV will seek to address critical questions, concerns, and opportunities surrounding the development of a robust aircraft manufacturing ecosystem in India. The expected timeline for the proposed SPV to complete the groundwork and develop the aircraft manufacturing plan is approximately five years.

The SPV aims to involve multiple stakeholders, including large Original Equipment Manufacturers (OEMs) like Airbus and Boeing, leveraging their expertise and market access. The minister has suggested that these global manufacturers have "a strong inclination to partner with us" given that "India is the major client for them". This collaborative approach recognizes the complex nature of aircraft manufacturing and the need to tap into established global knowledge networks while developing indigenous capabilities.

On the policy front, the government is introducing legislative reforms to support aircraft manufacturing. The Bhartiya Vayuyan Vidheyak bill, which will replace the nine-decade-old Aircraft Act, includes elements such as providing legal backing for aircraft design that would encourage domestic manufacturing. These legal frameworks are essential to create a conducive environment for investment and innovation in the aviation manufacturing sector.

The government is also working to streamline norms and provide support for research and development, conducting consultation meetings with industry stakeholders to understand challenges in achieving scale and innovation breakthroughs. This comprehensive approach addresses both regulatory and technological aspects of aircraft component manufacturing.

Certification And Standardisation Challenges

One of the most significant barriers to India's aircraft component manufacturing ambitions is the complex certification and standardization landscape. The consultation process has revealed a critical need to establish testing and licensing facilities in India that are accredited by international aviation authorities such as the Federal Aviation Administration (FAA) of the United States and the European Union Aviation Safety Agency (EASA).

Standardisation emerges as a key issue in the industry's development. A bilateral agreement between civil aviation regulators in India and those in the US and European Union is essential for certifying parts manufactured in India for use in Boeing and Airbus aircraft. The establishment of accredited testing facilities would provide an easier, quicker, and more affordable certification process while enabling the design and testing of locally innovated components.

Unlike the FAA Parts Manufacturer Approval (PMA), which combines design and production approval in a single system, the EASA framework separates these functions. All design work falls under EASA Part 21 Subpart J, while production (based on approved design data) is governed by EASA Part 21 G Organization regulations. Understanding these distinctions is crucial for Indian manufacturers seeking to export components to different markets with varying regulatory requirements.

Industry expert Mark Martin of Martin Consulting emphasizes that beyond obtaining FAA PMA or EASA Part 21 approvals, the government needs to ensure that OEMs allocate components manufactured in India "a part number and a reference in the IPC (Illustrated Parts Catalogue)." This technical but crucial detail highlights the comprehensive nature of the challenges facing India's aviation manufacturing sector.

Supply Chain And Material Sourcing Considerations

The development of a robust aircraft component manufacturing ecosystem in India necessitates addressing fundamental supply chain challenges. Government discussions are underway to ensure that the industry has consistent access to high-quality steel and aluminium, which are essential raw materials for aerospace components. The availability, quality, and cost of these materials significantly impact the competitiveness of Indian manufacturers in global markets.

Global constraints in component sourcing have positioned India as a key market for establishing manufacturing and other facilities for design and testing. Major international players including Pratt & Whitney, Collins Aerospace, Honeywell, and General Electric are investing in local manufacturing through their sourcing partners. This trend presents an opportunity for India to strengthen its position in global aerospace supply chains by developing specialized capabilities and competitive advantages.

The growth of component manufacturing would also invigorate the Maintenance, Repair, and Overhaul (MRO) sector in India. With locally manufactured components available at affordable prices due to lower applicable tax rates, MRO providers could enhance their service offerings and competitiveness. This synergy between manufacturing and maintenance sectors could create additional value and employment opportunities within the broader aviation ecosystem.

According to Prabhat Kumar Bhagavandas, Director and CEO of Rossell Techsys Inc., a company that provides mission-critical assemblies to leading OEMs like Boeing and Lockheed Martin, India's aerospace sector stands at a "strategic inflection point." The company emphasizes that the government's push for regulatory reforms and R&D support signals readiness to scale up from contract manufacturing to component manufacturing and eventually to becoming global solution providers. However, this ambition depends on faster certification pathways, access to specialized materials, and robust testing infrastructure.

Opportunities For MSMEs In Aviation Manufacturing

Micro, Small, and Medium Enterprises (MSMEs) represent a critical component of India's strategy to expand aircraft component manufacturing. These businesses offer agility, specialized expertise, and cost advantages that can be valuable in complex aerospace supply chains. With a skilled workforce and governmental support through initiatives like "Make in India," MSMEs have significant potential to become leading exporters of aviation and aerospace components.

Boeing India's collaboration with over 300 Indian suppliers, more than 25 percent of which are MSMEs, demonstrates the viability of integrating smaller enterprises into global aerospace supply chains. These partnerships have already contributed over $1.25 billion in annual sourcing, creating a foundation for further growth and development of the MSME sector in aviation manufacturing.

The opportunities for MSMEs extend beyond traditional manufacturing to include specialized services such as design, testing, and maintenance. As the aviation ecosystem in India expands, these enterprises can find niches where they can develop competitive advantages based on specialized knowledge, flexibility, or cost efficiency. However, venturing into international markets presents challenges including meeting stringent quality standards, obtaining necessary certifications, and integrating into complex global supply chains.

For MSMEs to fully capitalize on export opportunities in aviation and aerospace, they require support in navigating regulatory requirements, accessing finance for technology upgrades, and developing specialized skills. Government initiatives that address these specific needs can enhance the ability of smaller enterprises to contribute to India's broader ambitions in aircraft component manufacturing.

Conclusion

India stands at a pivotal moment in its aviation manufacturing journey, with significant potential to transform from a component importer to a major exporter of aircraft parts and eventually complete aircraft. The government's multifaceted approach—including the establishment of a dedicated SPV, regulatory reforms, and supply chain development—addresses many of the complex challenges facing this sector. However, success will depend on effective implementation of these initiatives and continued collaboration between government, industry, and international partners.

The focus on certification pathways, testing infrastructure, and material sourcing acknowledges the technical and regulatory complexities of aerospace manufacturing. Addressing these challenges will be essential for Indian manufacturers to integrate into global supply chains and meet the exacting standards of international aviation authorities and major OEMs.

The potential economic benefits are substantial, with projections suggesting exports could reach $20 billion over a decade while creating thousands of high-quality jobs. Beyond economic gains, developing indigenous aircraft manufacturing capabilities would enhance India's technological sovereignty and position in the global aviation ecosystem. As the world's fastest-growing major aviation market, India has a strong foundation of domestic demand from which to build export capabilities, potentially following the successful model of other Asian nations that have established themselves in global aerospace manufacturing.

IDN