In March, international aircraft maker Airbus laid out annual plans to buy parts and services for US$2 billion from India by 2030. It is a significant increase from the current level of US$1.4 billion and indicates the increasing role of India in the international manufacturing and supply chain.

Not Airbus alone, but international majors such as Rolls-Royce and Collins Aerospace are procuring components from India too. Industry leaders opine that with the capabilities of India's technological and component players, as well as India's competitive advantage in engineering, India can be a dependable and visionary participant in the global aerospace supply chain, providing cost-efficient solutions outside the usual markets of Europe and North America.

"India is fast emerging as an important source of manufacturing aircraft parts like landing gear, electrical switches, fuselage sections and motion control systems. This is particularly timely, given that global airplane and engine manufacturers are experiencing shortages of parts caused by worker walkouts, labor shortages, and supply chain blockages." As older markets run out of steam, India is upping the ante, with a number of leading aeronautics companies in the subcontinent now planning to increase their production capacity," Jaideep Mirchandani, group chairman of Sky One, adds.

He also feels that India is helped by a talented, young and educated population, comprising technical specialists and engineers, which puts the country in a position to shift up the value chain into design, engineering, and system integration. "It may be premature to say that India has arrived on the centre stage of world manufacturing, but now is the right time to move aggressively towards being a big player in a crucial manufacturing industry," adds Mr Mirchandani.

As per a report by Grand View Research, the Indian market for the production of aerospace parts, worth US$ 13.6 billion in 2023, is expected to expand with a CAGR of 6.8% from 2024 to 2030.

Mr Mirchandani states that, apart from serving parts to international firms, Indian manufacturers can play a crucial role in the development of a strong domestic aviation ecosystem.

"The aerospace components demand is directly related to the increasing demand for air travel, both domestically and globally. India's domestic civil aviation sector has been steadily growing over the past few years, and the airlines are continuously adding to their fleets. As more aircraft are operational, the frequency of maintenance also increases. This, in turn, drives the demand for high-quality aircraft components.". New technologies that are being developed and the growth of MRO activities are also fuelling this demand. The demand for locally sourced components increases as more aircraft are being serviced and maintained in India, says Mr Mirchandani.