BANGALORE: Big aerospace companies like Airbus, Collins Aerospace, Pratt & Whitney, and Rolls-Royce are now relying more on India for aircraft parts. This is helping India’s aerospace industry grow, with local companies stepping up to meet the demand.
Bangalore-based Hical Technologies and JJG Aero are among the companies benefiting from this trend. Hical, which supplies parts to Raytheon Technology and Boeing, plans to double its aerospace revenue to 5 billion rupees (USD57.57 million) in three years, according to joint managing director Yashas Jaiveer Shashikiran.
JJG Aero has seen rapid growth as well. It took the company 12 years to reach USD2 million in revenue, but in just the last six years, it has grown to USD20 million, said CEO Anuj Jhunjhunwala.
This boom is part of a larger shift in the Asia-Pacific aerospace industry. According to Accenture Research, revenue in the region is expected to be 54% higher in 2024 compared to 2019. In contrast, North America and Europe are still below pre-pandemic levels.
"Earlier, we had to chase customers, but now they are reaching out to us," said Jhunjhunwala. He also noted that deals are being signed and processes are moving faster than before.
Indian companies manufacture crucial parts like landing gear, wings, fuselage components, electrical switches, and motion control systems to flight safety and performance.
Major Western aerospace manufacturers have faced issues like strikes, production limits, and shortages of both materials and workers since the pandemic. To keep up with the rising demand for air travel, they are looking to India for solutions.
"India is the best answer to global supply chain problems," said Huw Morgan, a senior vice president at Rolls-Royce, at a recent industry event. He added that Rolls-Royce’s engine production is growing by about 20%, and traditional suppliers are struggling to keep up. The company now plans to double its sourcing from India within five years.
Despite being one of the biggest aircraft buyers, India currently accounts for only 1% of the global aerospace supply chain. However, the newly formed Aerospace India Association (AIA) predicts this will change quickly.
India is already the third-largest aviation market in the world in terms of passenger seats and one of the fastest-growing. This is driving demand for aircraft maintenance and spare parts. Recent massive aircraft orders from IndiGo and Air India are also helping the industry expand, said Air India CEO Campbell Wilson.
Indian aerospace companies have supplied global manufacturers for years, but now they are moving beyond basic manufacturing. They are getting into high-value work like design, engineering, and system integration.
Airbus has been increasing its partnerships with Indian companies. In 2024, it awarded another aircraft door contract to Indian suppliers, marking its second such deal in just one year.
"India already contributes over 1 billion euros to Airbus’ supply chain, and we expect to double this soon," said Michel Narchi, head of international operations at Airbus. "Today, every Airbus commercial aircraft has some parts made in India."
To boost local production, India’s civil aviation ministry recently met with industry leaders to discuss ways to increase aerospace component manufacturing, said AIA Director General Srinivasan Dwarakanath. He stressed the importance of sourcing raw materials like aluminum, steel, and titanium locally and ensuring Indian companies receive global certifications for their designs.
The AIA believes that India’s aerospace industry could grow to capture 10 % of the global supply chain market within a decade. The global aerospace market is expected to reach USD250 billion annually by 2033.
