India is rapidly solidifying its role in the global aerospace supply chain, as major international manufacturers increasingly source aircraft components from the country. According to industry reports, domestic aerospace firms are scaling operations, moving up the value chain, and preparing to raise significant capital through initial public offerings (IPOs), with plans totaling roughly US$ 649 million (Rs. 5,700 crore).
Favourable trade policies have supported this growth, with aerospace components attracting a 25% US import duty, considerably lower than the 50% levied on textiles and automotive parts. This tariff advantage has made India an increasingly attractive sourcing hub for global OEMs.
Belgaum-based Aequs, which supplies major players including Airbus, Boeing, and Bombardier, reported that 89% of its FY25 revenue of US$ 105.5 million (Rs. 925 crore) came from aerospace components, underscoring the sector’s export orientation. Over the past decade, Boeing has dramatically increased its procurement from India, sourcing US$ 1 billion (Rs. 8,771 crore) in components annually, up from just US$ 250 million (Rs. 2,193 crore). Airbus is targeting US$ 2 billion (Rs. 17,542 crore) in sourcing from India by 2030.
Hyderabad-based Azad Engineering, supplying to Rolls-Royce and Honeywell Aerospace, reported an 84% increase in aerospace and defense revenue, reaching US$ 9.2 million (Rs. 81 crore) in FY25, while its order book expanded to US$ 193.8 million (Rs. 1,700 crore). Unimech Aerospace is pursuing growth through acquisitions and joint ventures, enabling it to manufacture more complex systems for global clients.
Industry experts predict that India’s share of the global aerospace supply chain could rise from the current 2% to 10% in the coming years, driven by enhanced domestic capabilities, robust partnerships with OEMs, and the strategic push under the ‘Make in India’ initiative. The combination of competitive costs, a skilled workforce, and favorable policy measures positions India as a critical node in global aerospace manufacturing, supporting both exports and domestic industrial expansion.
As global demand for aerospace components grows, India’s rising presence signals a strategic shift, turning the country into a preferred destination for high-value manufacturing in the sector.
