How Indian Firms Are Silently Gaining Ground on Global Aerospace Giants

As Western aerospace giants face supply chain disruptions, Indian firms are quietly gaining a foothold in the global market, with major companies increasingly sourcing parts from India. Amid a global crisis marked by labor shortages, production caps, and supply delays following the pandemic, firms like Airbus, Rolls-Royce, Collins Aerospace, and Pratt & Whitney are turning to Indian suppliers to meet growing demand for air travel.

Indian Aerospace Firms Thrive Amid Global Supply Chain Crisis
Indian aerospace firms are benefiting from this shift. Bengaluru-based companies like Hical Technologies and JJG Aero are seeing rapid growth. Hical Technologies, a supplier to companies such as Boeing and Raytheon, aims to double its aerospace revenue to 5 billion rupees (around $57.57 million) within three years, according to Joint Managing Director Yashas Jaiveer Shashikiran.

Meanwhile, JJG Aero, also located in Bengaluru's aerospace hub, has experienced a meteoric rise. After 12 years of modest revenue growth, it now reports $20 million in annual revenue, up from just $2 million six years ago, said CEO Anuj Jhunjhunwala.

Rising Demand Drives Growth
The growth of India’s aerospace sector is part of a broader Indo-Pacific aerospace boom, with 2024 revenues expected to exceed 2019 levels by 54%. In comparison, aerospace revenues in North America and Europe are projected to remain 3% and 4% lower, respectively, according to Accenture Research.

“Earlier, we were chasing customers. Now, they are equally interested in evaluating Indian machine shops,” Jhunjhunwala shared, noting that deals are being signed more quickly than ever before. His company manufactures key components such as landing gear, fuselage parts, and motion control systems, which are essential for the safety and performance of aircraft.

India: The Solution to Global Supply Chain Woes
The global aerospace industry has struggled with strikes, labor shortages, and delays, driving major manufacturers to look for alternative suppliers. Huw Morgan, Senior Vice President for Aerospace Procurement at Rolls-Royce, praised India as “the best solution to supply chain challenges” in a recent industry event. Rolls-Royce plans to double its sourcing from India within the next five years to support growing engine volumes.

"India is the best cost market," Morgan added, pointing to the country’s growing role in the supply chain. Despite being one of the world’s largest aircraft buyers, India currently accounts for just 1% of the global aerospace supply chain market, according to the newly formed Aerospace India Association.

India’s Expanding Role in the Aerospace Sector
India’s aerospace sector has seen a major shift since the pandemic. The country’s massive orders from airlines like IndiGo and Air India are fueling demand for maintenance services and parts, which is pushing local suppliers to innovate and expand their offerings. As a result, Indian firms are moving beyond basic manufacturing into higher-value work such as design, engineering, and system integration.

In a significant milestone, Airbus awarded its second aircraft door contract to Indian suppliers in 2024. "India is contributing more than 1 billion euros currently to the Airbus supply chain, and we expect to double that," said Michel Narchi, head of international operations at Airbus. "Every commercial aircraft of Airbus today has some part or component that is made in India."

Industry Support and Future Outlook
India’s civil aviation ministry recently convened a meeting with industry leaders to discuss boosting component manufacturing. A key part of this effort involves local sourcing of raw materials like aluminium, steel, and titanium, as well as the eventual certification of designs made by Indian suppliers.

The Aerospace India Association (AIA) projects that India’s aerospace industry will capture 10% of the global supply chain market by 2033, with the global market expected to reach $250 billion annually by that time.

Yashas Jaiveer of Hical Technologies emphasized that India is now well-positioned to meet the demands of the aerospace sector. "India also had the initial challenges of being physically farther away from the main markets of the U.S. and Europe. But now, India is all set," he said.

As India strengthens its foothold in the aerospace market, its role in the global supply chain is poised to expand, providing solutions to industry giants struggling with supply chain challenges and creating new opportunities for local firms.