With major companies like Airbus, Collins Aerospace, Pratt & Whitney, and Rolls-Royce increasing their sourcing of parts from India, Indian companies are making significant progress in the global aerospace industry. This is encouraging the nation’s nascent aerospace industry and encouraging regional businesses to advance their skills.
Due to supply chain problems that have resulted in strikes, production halts, and shortages of labor and parts since the pandemic, Western aircraft and engine manufacturers are turning to India for a solution. By sourcing more from India, these manufacturers hope to satisfy the growing demand for air travel.
Within the next three years, Bangalore-based Hical Technologies, a supplier to Raytheon Technology and Boeing, hopes to double its aerospace division revenue to 5 billion rupees ($57.57 million).
Bangalore-based JJG Aero also observedsignificant expansion, going from $2 million to $20 million in revenue over the previous six years.
While North America and Europe are predicted to see 3% and 4% declines in revenue, respectively, the Indo-Pacific aerospace industry is booming, with projected 2024 revenue expected to be 54% higher than 2019 levels.
According to Rolls-Royce’s senior vice president for aerospace procurement, Huw Morgan, India is the best way to address supply chain issues. He added that India is the best cost market and that conventional supply chains are unable to handle their engine volume growth of about 20%. Within five years, Rolls-Royce intends to double its Indian sourcing.
Indian businesses are shifting from simple manufacturing to more valuable pursuits like system integration, engineering, and design.
Every Airbus commercial aircraft now has parts or components manufactured in India thanks to Airbus’s expansion of its contracts with Indian suppliers. Currently contributing more than 1 billion euros, Airbus’s entire supply chain in India is predicted to double in size. In less than a year, Airbus gave Indian suppliers its second contract for aircraft doors. They anticipate that India will double its current contribution of over 1 billion euros to the Airbus supply chain.
The goal of India’s civil aviation ministry is to increase component manufacturing, which includes sourcing raw materials like titanium, steel, and aluminum locally.
Within ten years, the Indian aerospace sector is expected to account for 10% of the global supply chain market, which is expected to grow to $250 billion a year by 2033.
With programmes like “Make in India” and “Atmanirbhar Bharat,” the Indian government is actively working towards self-reliance in defence manufacturing by promoting domestic production and private sector involvement.
The third-largest domestic aviation market in the world, India is expanding quickly, which increases demand for maintenance services and parts. Significant aircraft orders from IndiGo and Air India are driving this expansion. With an average annual growth rate of 8.7% from 2005 to 2024, domestic airline capacity in India has historically increased more quickly than international capacity.
In the global aerospace industry, Indian companies are moving up from basic manufacturing to higher-value pursuits like system integration, engineering, and design. In 2024, Airbus will award its second aircraft door contract to Indian suppliers within a year, demonstrating its recognition of this potential. Every Airbus commercial aircraft has parts or components made in India, and the country’s contribution to the Airbus supply chain is expected to double, according to Michel Narchi, head of international operations at Airbus.
While North America and Europe continue to see 3% and 4% declines in revenue, respectively, the Asia-Pacific aerospace industry is booming, with projected 2024 revenues 54% higher than 2019 levels.
Air India and IndiGo’s massive aircraft orders are driving expansion in the aviation industry.
By demonstrating the country’s expanding capabilities and drawing in foreign direct investment, Aero India 2025 is anticipated to increase India’s worldwide footprint in the aerospace industry.
In the last ten years, the number of passengers in India has increased from about 70 million to 200 million, indicating the rapid growth of both airlines and passenger traffic.
For businesses looking to improve their position in the Asian market, such as Airbus, Safran, and Dassault, India is becoming a strategic partner.
By 2025, the Indian MRO (Maintenance, Repair, and Overhaul) market is projected to grow to $4 billion.
By 2030, the Indian aerospace and defense (A&D) market is projected to grow to a value of about $70 billion.
The local sourcing of raw materials like titanium, steel, and aluminum would be a crucial step towards true value addition and could result in the certification of designs produced by Indian suppliers.
