Airbus, Collins Aerospace, Pratt & Whitney, and Rolls-Royce are increasing their sourcing of aerospace components from India as supply chain disruptions continue to impact Western manufacturers, according to a report by Reuters. The move is contributing to the growth of India’s aerospace sector, with local firms expanding operations and revenue.
Hical Technologies, a Bengaluru-based supplier to Raytheon Technologies and Boeing, plans to double its aerospace division revenue to 5 billion rupees ($57.57 million) within three years, according to joint managing director Yashas Jaiveer Shashikiran. JJG Aero, also based in Bengaluru, reported a tenfold revenue increase in the last six years, reaching $20 million, CEO Anuj Jhunjhunwala said.
The shift comes as the Asia-Pacific aerospace sector is projected to generate 54% more revenue in 2024 compared to 2019, while North America and Europe remain below pre-pandemic levels, according to Accenture Research. Industry executives note that Indian suppliers are securing contracts more quickly as manufacturers look to diversify their supply chains.
Rolls-Royce has announced plans to double sourcing from India within five years. Huw Morgan, senior vice president for aerospace procurement at Rolls-Royce, stated that growing demand for engines—at approximately 20% annually—has outpaced traditional supply chain capabilities, making India a key sourcing destination.
India, one of the world’s largest aircraft buyers, currently accounts for only 1% of the global aerospace supply chain market. However, the Aerospace India Association (AIA) projects that the country’s share could reach 10% by 2033, with the global aerospace market expected to be valued at $250 billion annually.
Airbus has also increased its collaboration with Indian suppliers, awarding its second aircraft door contract within a year. The company estimates that its supply chain contributions from India exceed 1 billion euros and expects this figure to double in the coming years.
The Indian government is engaging with industry stakeholders to strengthen the aerospace manufacturing ecosystem. AIA Director General Srinivasan Dwarakanath noted that increasing local sourcing of raw materials such as aluminum, steel, and titanium, along with design certification, could enhance India’s role in the global supply chain.