In a world still navigating post-pandemic supply chain snarls and industrial bottlenecks, India is fast emerging as the unexpected hero of the global aerospace manufacturing industry. With international giants like Airbus, Rolls-Royce, and Collins Aerospace increasingly sourcing parts from Indian firms, the country is not just participating in the global supply chain—it’s starting to anchor it.
This transformation, once deemed ambitious, is now taking off at full throttle.
Airbus Bets Big on India: $2 Billion by 2030
When Airbus announced in March 2025 that it plans to procure $2 billion worth of components and services from India annually by 2030, it wasn’t just a business decision—it was a statement. Up from the current $1.4 billion, this surge is a direct nod to India’s rising manufacturing prowess.
But Airbus isn’t alone. Rolls-Royce, a leader in engine technology, and Collins Aerospace, a systems titan, are also eyeing India as a trusted source for everything from landing gears to motion control systems.
Why India? Quality, Quantity, and Quick Turnarounds
According to Jaideep Mirchandani, Group Chairman of Sky One, the shift toward India is rooted in necessity and strategy. “India is quickly becoming a key source for manufacturing aircraft components… at a time when global players are dealing with part shortages, labour gaps, and supply disruptions,” he says.
What makes India so attractive?
- Cost-effectiveness compared to Europe and North America
- A technically skilled and young workforce
- A growing number of aeronautics firms scaling up production
- The ability to provide quick deliverables in a time-sensitive industry
A Market Ready for Takeoff
According to Grand View Research, India’s aerospace parts manufacturing market was valued at $13.6 billion in 2023. But the runway is only getting longer. With a projected CAGR of 6.8% from 2024 to 2030, the industry is poised for explosive growth.
And it’s not just exports. India’s civil aviation sector is booming. Airlines are expanding fleets at breakneck speed, and with more aircraft in the sky comes more demand for maintenance, repair, and overhaul (MRO) services—further boosting the need for locally manufactured parts.
Beyond Assembly: Moving Up the Value Chain
India isn’t just content with assembling parts. As Mirchandani notes, the country is positioning itself to move into design, engineering, and system integration—areas typically dominated by aerospace veterans.
This is supported by a robust talent pipeline, with over 1.5 million engineers graduating annually and government programs like ‘Make in India’ offering incentives and streamlined policies for aerospace and defense.
Domestic Ecosystem on the Rise
While international contracts grab headlines, the true transformation lies in the creation of a self-reliant domestic aviation ecosystem. India’s airports are expanding, air travel is becoming increasingly accessible, and indigenous aircraft development programs—such as HAL’s HTT-40 trainer and AMCA stealth fighter—are signaling a new era of homegrown aerospace capabilities.
As MRO services gain traction within India, the demand for locally sourced high-quality parts is also on the rise. This closed-loop development—where India designs, builds, flies, and maintains aircraft domestically—is where the real future lies.
Final Approach: Is India the New Aerospace Capital?
Is India ready to dethrone global manufacturing hubs? Maybe not just yet. But as Mirchandani aptly puts it, “This is the right time to take decisive steps toward becoming a major hub in a critical manufacturing sector.”
The trajectory is clear. India is not merely assembling parts anymore—it’s assembling a future where it could sit in the pilot’s seat of global aerospace innovation.
TL; DR
- Airbus to procure $2B annually from India by 2030
- India supplies major components like fuselage parts, electrical switches, and more
- Market to grow at 6.8% CAGR, reaching new heights by 2030
- Skilled workforce and policy support are fueling this transformation
- India is rising from vendor to visionary in aerospace
Jaideep Mirchandani
Jaideep Mirchandani is the Group Chairman of Skyone FZE, a leading aviation holding entity with interests in several aviation firms globally managing a fleet strength of over 50 airplanes and helicopters of various modifications. Jaideep holds a Mechanical Engineering degree and brings in deep aviation management and leadership experience in operating a highly diverse and profitable aviation entity.
Source: 100 Knots
