How Indian Firms Are Silently Gaining Ground On Global Aerospace Giants

Airbus, Collins Aerospace, Pratt & Whitney, and Rolls-Royce are expanding parts sourcing from India, driving growth in the country's emerging aerospace sector and pushing local firms to elevate their games, industry insiders say.

Bengaluru-based Hical Technologies and JJG Aero are among those riding the wave. Hical, a supplier to Raytheon Technology and Boeing among others, aims to double revenue to 5 billion rupees ($57.57 million) from its aerospace division in three years, said Yashas Jaiveer Shashikiran, joint managing director.

JJG Aero, also in Bengaluru's industrial hub, took 12 years to hit $2 million in revenue but soared to $20 million in the last six, said CEO Anuj Jhunjhunwala.

The growth is part of an Indo-Pacific aerospace surge, with 2024 revenue projected to be 54% above 2019 levels, while North America and Europe remain 3% and 4% lower, according to Accenture Research.

"Earlier, we were chasing customers. Now, they are equally interested in evaluating Indian machine shops," Jhunjhunwala said, adding that contracts were being signed more quickly and onboarding processes being done much faster than ever before.

The companies produce parts for landing gear, wings, fuselage, electrical switches and motion control systems essential for flight safety and performance.

Leading Western plane and engine manufacturers, whose output has been constrained by strikes, production caps, and parts and labour shortages since the pandemic, say they want to source more from India to meet rising demand for air travel.

"India is the best solution to supply chain challenges," Huw Morgan, senior vice president for aerospace procurement at Rolls-Royce, said last week at an industry event.

"Our engine volumes are growing at around 20% and the traditional supply chains are just not able to support it," Morgan said. "India is ... the best cost market."

The British company plans to double sourcing from India within five years.

The country is among the biggest aircraft buyers in the world, yet accounts for only 1% of the global supply chain market, according to the recently formed Aerospace India Association.

"Post-Covid, the global aerospace industry has reached an inflection point. While this shift began in 2020, aerospace is a slow-moving industry - it takes time for changes to materialise," said Aravind Melligeri of supplier Aequs.

MORE PLANES, MORE PARTS

India, the world's third-largest domestic aviation market by seats, is also among the fastest-growing, driving demand for maintenance services and parts.

Massive aircraft orders from IndiGo and Air India are fuelling growth across the aviation ecosystem, Air India CEO Campbell Wilson told Reuters.

Although Indian firms have long supplied the $180 billion global aerospace industry, they are now moving beyond basic manufacturing to higher-value work such as design, engineering, and system integration.

Airbus in 2024 awarded its second aircraft door contract within a year to Indian suppliers.

"India is contributing more than 1 billion euros currently in the overall Airbus supply chain and we expect to double that. Every commercial aircraft of Airbus today has some part or component that is made in India," said Michel Narchi, head Of international operations at Airbus said.

INDUSTRY EFFORTS

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.