Airbus, Collins Aerospace, Pratt & Whitney, and Rolls-Royce are increasing their sourcing of parts from India. With its skilled workforce, cost-effectiveness, and robust supply chain ecosystem, India has become a key supplier to global aerospace companies. As a result, major players like Boeing, Airbus, and GE have established facilities in the country.
As the global aviation sector faces many challenges, including the COVID-19 pandemic and geopolitical tensions, aerospace companies have sought to diversify their supply bases and reduce the risks of being dependent on a single country. For instance, Airbus has tapped companies like Bengaluru-based Dynamatic Technologies to manufacture and assemble cargo, passenger, and service doors for its A220 aircraft program. The company has also signed contracts with Mahindra Aerospace Structures Private Limited and Tata Advanced Systems Ltd to manufacture metallic detail parts, components, and assemblies for its 737 MAX and 777X programs.
In its quest to expand India’s aerospace manufacturing footprint, the government has rolled out several incentives and streamlined regulatory processes. For example, it has set up aerospace-focused industrial parks, special economic zones, and skill development centers. It has also lowered foreign direct investment (FDI) caps to 100% in the sector, making it easier for global players to invest and establish plants.
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Moreover, the government is working towards establishing a robust aerospace infrastructure and upskilling local engineering talent through partnerships with universities and training institutions. It is also fostering innovation and co-development through industry collaborations and joint ventures and investing in research.
The move has boosted growth in the country’s emerging aerospace sector and pushed local firms to elevate their games, industry insiders say. For example, Hical Technologies, a Raytheon Technology, and Boeing supplier expects revenue to double to 5 billion rupees ($57.57 million) by 2027 from 2 billion rupees in 2017. Its revenue has grown at a rate of 30% year-on-year in the past four years, and the company plans to continue this momentum by focusing on new products, leveraging data analytics, and increasing its engineering capabilities.
Aerospace and defense suppliers are also leveraging the growing demand in the region to boost capacity and exports. They seek to expand their production facilities, increase warehousing capacity, and build new supply chains for oversized and high-value components. They are also bolstering their logistics operations, particularly with the help of third-party logistics providers, such as DB Schenker. This has been possible because of the country’s extensive network of warehouses and logistics expertise.
