Leading suppliers and manufacturers are turning to India to ease their supply chain woes 

The global aerospace industry is increasingly turning towards India as a solution to the ongoing supply chain crisis that has engulfed the industry for the last few years. 

Reuters reported that leading Western plane and engine manufacturers including Airbus, Collins Aerospace, Pratt & Whitney and Rolls-Royce are all expanding their operations in India as they seek to meet rising demand for air travel. 

Many Indian suppliers are positioning themselves to take advantage of this interest, through the supply of parts for landing gear, wings, fuselages, electrical switches and motion control systems essential for flight safety and performance.  

“India is the best solution to the supply chain challenges”, said Huw Morgan, senior vice president for aerospace procurement at Rolls-Royce speaking to Reuters. 

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

Last year, Airbus 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 Michale Narchi, Head of International Operations at Airbus, speaking to Reuters. 

India is among the biggest aircraft buyers but only accounts for 1% of the global supply market, according to the recently formed Aerospace India Association. It is also the world’s largest domestic aviation market by seats and the market for maintenance services and parts is growing fast. 

Hical Technologies, based in Bengaluru and a supplier to Raytheon Technologies and Boeing, aims to double its overall revenue to $57.57 million from its aerospace division in three years.  

JIG Aero, another supplier, had previously taken 12 years to reach $2 million in revenue but has made $20 million in the last six years. 

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. This, as Reuters reports, is part of a transition within India from basic manufacturing towards more higher value work such as design, engineering and systems integration.