Global aerospace firms turn to India amid Western supply chain crisis

India’s aerospace sector is witnessing rapid growth as major global players like Airbus, Collins Aerospace, Pratt & Whitney, and Rolls-Royce increase parts sourcing from the country. Companies such as Bengaluru-based Hical Technologies and JJG Aero are capitalizing on this shift, with Hical aiming to double its aerospace revenue to Rs. 500 crore (US$ 57.57 million) in three years. JJG Aero, which took 12 years to reach Rs. 17 crore (US$ 2 million) in revenue, has surged to Rs. 174 crore (US$ 20 million) in the last six years. This expansion aligns with a broader Asia-Pacific aerospace boom, where 2024 revenue is projected to be 54% higher than in 2019, while North America and Europe remain below pre-pandemic levels. Western manufacturers, facing supply chain disruptions due to strikes and material shortages, are turning to India as a cost-effective solution, with Rolls-Royce planning to double its sourcing within five years.

India, the world's third-largest domestic aviation market by seating capacity, is also one of the fastest-growing, driving demand for maintenance services and high-value aerospace components. With massive aircraft orders from airlines like IndiGo and Air India, Indian suppliers are moving beyond basic manufacturing to advanced areas such as design, engineering, and system integration. To strengthen the industry, the Aerospace India Association (AIA) and the civil aviation ministry are pushing for local sourcing of raw materials like aluminum, steel, and titanium, aiming to capture 10% of the global aerospace supply chain market by 2033. Despite initial challenges, such as geographical distance from key markets, India’s aerospace ecosystem has matured, positioning the country as a key global supplier.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.