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Airbus, Collins Aerospace, Pratt & Whitney, and Rolls-Royce are increasing their procurement of components from India, which is fostering growth in the nation's developing aerospace industry and prompting local businesses to enhance their capabilities, according to industry experts. Among those benefiting from this trend are Hical Technologies and JJG Aero, both located in Bengaluru. Hical, which supplies parts to companies such as Raytheon Technology and Boeing, has ambitions to increase its aerospace division revenue to 5 billion rupees (approximately $57.57 million) within three years, as stated by joint managing director Yashas Jaiveer Shashikiran. JJG Aero, also based in the industrial sector of Bengaluru, took twelve years to reach $2 million in revenue but has since achieved a remarkable growth, jumping to $20 million in the last six years, noted CEO Anuj Jhunjhunwala.

This growth aligns with a booming aerospace sector in the Indo-Pacific, with projections indicating a 54% increase in revenue for 2024 compared to 2019, while North America and Europe are experiencing declines of 3% and 4%, respectively, as reported by Accenture Research. "Previously, we pursued clients. Now, they are keen to assess Indian machine shops," Jhunjhunwala remarked, mentioning that contract signings and onboarding processes have become significantly quicker. The companies manufacture critical components, including parts for landing gear, wings, fuselage, electrical switches, and motion control systems essential for aviation safety and performance. Leading Western aircraft and engine manufacturers, hindered by strikes, capping production, and shortages of parts and labor since the pandemic, are eager to increase sourcing from India to satisfy the growing demand for air travel. "India is the optimal solution for supply chain issues," asserted Huw Morgan, senior vice president of aerospace procurement at Rolls-Royce, during an industry event last week.

"Our engine production is increasing by around 20%, and traditional supply chains cannot keep pace," Morgan highlighted. "India represents the most cost-effective market." Rolls-Royce intends to double its sourcing from India within the next five years. Despite being one of the top aircraft purchasers globally, the country constitutes just 1% of the worldwide supply chain market, as indicated by the newly established Aerospace India Association. "The global aerospace sector is at a pivotal moment following Covid. While the transition started in 2020, aerospace evolves slowly, and it requires time for substantial changes to take place," noted Aravind Melligeri from the supplier Aequs.

As the third-largest domestic aviation market by seating capacity, India is also one of the fastest-growing, spurring a demand for maintenance services and components. Significant aircraft orders from IndiGo and Air India are driving expansion throughout the aviation supply chain, according to Air India CEO Campbell Wilson. Although Indian companies have long been suppliers to the $180 billion global aerospace sector, they are now moving beyond basic production to more sophisticated endeavors, including design, engineering, and system integration. In 2024, Airbus awarded its second contract for aircraft doors to Indian suppliers within the span of a year. "Currently, India contributes over 1 billion euros to the overall Airbus supply chain, and we anticipate that will double. Every commercial aircraft produced by Airbus today contains at least one part or component manufactured in India," stated Michel Narchi, head of international operations at Airbus.

India's civil aviation ministry held a meeting last week with industry leaders about boosting component manufacturing, said AIA Director General Srinivasan Dwarakanath. The association represents both Indian and global firms. He said a key step towards real value addition would be the local sourcing of raw materials such as aluminium, steel, and titanium, eventually leading to certification of designs made by Indian suppliers. The AIA estimates that India's aerospace industry will capture 10% of the global supply chain market within a decade, with the global market projected to reach $250 billion annually by 2033. "India also had the initial challenges of being physically farther away from the main markets of the U.S. and Europe. Engineering approvals, qualification timings, raw material sourcing - it took some time to build the ecosystem, but now India is all set," said Hical's Yashas Jaiveer.