India’s Aerospace Sector Sees Surge in Global Sourcing Amid Western Supply Chain Crisis

India’s aerospace sector is rapidly expanding, driven by major global aerospace firms increasing their parts sourcing from the country. Companies like Airbus, Collins Aerospace, Pratt & Whitney, and Rolls-Royce are turning to India as a reliable and cost-effective solution to their supply chain disruptions caused by strikes and material shortages in North America and Europe.

• The aerospace boom in the Asia-Pacific region has further accelerated this trend, with 2024 revenue projections indicating a 54% increase compared to 2019, while North America and Europe are still recovering to pre-pandemic levels.
• India, which is now the world’s third-largest domestic aviation market by seating capacity, is emerging as a key global supplier of aerospace parts, components, and services.

Local Suppliers Benefiting from Global Demand

Indian aerospace firms like Hical Technologies and JJG Aero are benefiting greatly from this shift in sourcing, with Hical aiming to double its aerospace revenue to Rs. 500 crore (US$ 57.57 million) within three years.

• JJG Aero, which took 12 years to reach Rs. 17 crore (US$ 2 million) in revenue, has seen its revenue surge to Rs. 174 crore (US$ 20 million) in just the last six years, demonstrating the rapid growth of Indian suppliers in the sector.
• This growth aligns with the broader trends of the Asia-Pacific aerospace boom, where India’s strategic location and burgeoning capabilities are making it a preferred choice for Western aerospace manufacturers.

India's Position as a Global Supplier

As global aviation markets like IndiGo and Air India place massive aircraft orders, there is a growing demand for maintenance services and high-value aerospace components in India. In response, Indian suppliers are progressing beyond basic manufacturing, expanding into advanced areas like design, engineering, and system integration.

• The Aerospace India Association (AIA), in partnership with the civil aviation ministry, is driving efforts to bolster India’s aerospace ecosystem by encouraging local sourcing of raw materials like aluminum, steel, and titanium.
• India has set an ambitious target to capture 10% of the global aerospace supply chain market by 2033, positioning itself as a key player in the industry.

Challenges and Opportunities in India's Aerospace Sector

Despite challenges like geographical distance from key markets and initial entry barriers, India’s aerospace sector has matured rapidly over the past few years. The expansion of global partnerships and the increasing role of Indian suppliers in advanced aerospace functions are positioning the country as a dominant force in the global aerospace supply chain.

• The Indian government’s support for local production, combined with the sector’s increasing international competitiveness, is paving the way for continued growth in the coming years.
• India’s aerospace export potential is expected to rise steadily, with global aerospace companies increasingly relying on Indian firms for high-quality, cost-effective solutions.

Conclusion

India’s aerospace sector is rapidly becoming a global hub for aerospace parts and services, driven by growing demand from Western firms facing supply chain disruptions. With leading firms like Rolls-Royce, Airbus, and Pratt & Whitney increasing sourcing from India, local suppliers like Hical Technologies and JJG Aero are experiencing exceptional growth. With a clear roadmap to capture 10% of the global aerospace market by 2033, India is poised to become a major player in the aerospace industry.

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