Global Aerospace Companies Shift to India Amid Western Supply Chain Disruptions

India's aerospace manufacturing sector sees rapid expansion as global firms seek alternative supply chains

As Western supply chain disruptions continue to impact the aerospace industry, leading global companies such as Airbus, Collins Aerospace, Pratt & Whitney, and Rolls-Royce are increasingly turning to India to source critical aircraft components. This strategic shift is fueling rapid growth in India’s aerospace sector, compelling local manufacturers to scale up operations and enhance their technological capabilities.

Bengaluru-based Hical Technologies and JJG Aero are among the Indian aerospace firms benefiting from this transition. Hical, which supplies to major global aviation giants like Raytheon Technologies and Boeing, is targeting a revenue increase from its aerospace division to 5 billion rupees ($57.57 million) within three years. According to Yashas Jaiveer Shashikiran, the company’s joint managing director, the demand surge is accelerating business expansion.

Similarly, JJG Aero, located in Bengaluru’s industrial hub, has seen exponential growth. The company took 12 years to reach $2 million in revenue but has skyrocketed to $20 million in just the last six years. CEO Anuj Jhunjhunwala attributes this success to the changing dynamics of the global aerospace supply chain, where Indian suppliers are now in high demand.

The Asia-Pacific region is witnessing a significant surge in aerospace revenue, projected to be 54% higher than pre-pandemic levels in 2019, while North America and Europe remain below their 2019 figures by 3% and 4%, respectively. "Previously, we had to actively seek out customers, but now they are approaching us," Jhunjhunwala noted, emphasizing the accelerated pace of contract negotiations and onboarding processes.

Increased Demand for Aircraft Components Drives Growth

Indian manufacturers are now playing a crucial role in producing vital aircraft components, including landing gear, fuselage sections, electrical switches, motion control systems, and wing structures. These parts are essential for ensuring flight safety and enhancing aircraft performance.

Western aerospace firms have faced severe production slowdowns due to labor shortages, strikes, and parts supply issues post-pandemic. This has prompted leading companies to seek reliable and cost-effective supply chain alternatives. Rolls-Royce, which is experiencing a 20% annual increase in engine production volumes, has publicly stated that India presents the best solution to these challenges. Huw Morgan, Rolls-Royce’s senior vice president for aerospace procurement, affirmed at a recent industry event that the company intends to double its sourcing from India within the next five years.

Despite being one of the world’s largest aircraft buyers, India currently accounts for just 1% of the global aerospace supply chain market. However, this is set to change with the concerted efforts of industry stakeholders, including the newly formed Aerospace India Association (AIA). Aravind Melligeri, chairman and CEO of supplier Aequs, noted that while the shift towards Indian aerospace manufacturing began in 2020, the industry’s slow-moving nature means the full impact is only now becoming evident.

India's Expanding Role in the Global Aviation Market

As the third-largest domestic aviation market in terms of seat capacity, India is also among the fastest-growing globally. This expansion is driving an increased demand for aircraft maintenance services, spare parts, and advanced aerospace components.

Massive aircraft orders placed by major airlines like IndiGo and Air India are further strengthening India’s position in the global aviation supply chain. Air India CEO Campbell Wilson confirmed that these large-scale purchases are fueling growth across the aviation ecosystem, including manufacturing, maintenance, and engineering services.

While Indian firms have historically contributed to the $180 billion global aerospace industry through basic component manufacturing, they are now moving into high-value domains such as design, engineering, and complex system integration. This shift is exemplified by Airbus awarding two aircraft door contracts to Indian suppliers in 2024 alone. "India currently contributes over 1 billion euros to Airbus’s overall supply chain, and we expect this figure to double soon. Every Airbus commercial aircraft today contains at least one component manufactured in India," said Michel Narchi, head of international operations at Airbus.

Government and Industry Collaboration to Strengthen Aerospace Manufacturing

Recognizing the potential for India’s aerospace sector, the civil aviation ministry recently convened a high-level meeting with industry leaders to explore strategies for boosting domestic component manufacturing. AIA Director General Srinivasan Dwarakanath emphasized the importance of increasing local sourcing of key raw materials, including aluminum, steel, and titanium. He also highlighted the long-term goal of obtaining global certification for aerospace designs developed by Indian firms.

Industry experts predict that India’s aerospace sector could capture up to 10% of the global aerospace supply chain market within the next decade. With the global aerospace supply chain projected to reach $250 billion annually by 2033, India is well-positioned to become a dominant player in the industry.

"Initially, India faced challenges due to its geographic distance from key aerospace markets like the U.S. and Europe. However, over time, the country has built a robust ecosystem that streamlines engineering approvals, qualification processes, and raw material sourcing. Now, India is fully equipped to meet the rising global demand," said Hical’s Yashas Jaiveer.