Why India's aerospace manufacturing industry is witnessing massive growth
What's the story
The Indian aerospace manufacturing sector is witnessing a surge in private equity investments, as companies look to expand their operations and take on more complex projects. This trend comes as global aircraft manufacturers such as Airbus and Boeing are looking to diversify their supply chains by adding countries like India into the mix. The influx of capital is seen as a major catalyst for growth in this sector.
Funding impact
Private equity funding enabling shift to higher-value work
Private equity is fast emerging as a major funding source for aerospace manufacturing companies in India.
This is enabling them to expand their capacity and shift toward higher-value work.
Dr. S Dwarakanath, Director General, Aerospace India Association (AIA), emphasized that access to private capital sets this growth cycle apart from the previous one (2004-08), when funding options were limited.
Future prospects
Aerospace manufacturing industry aims for $20B growth in a decade
Dwarakanath also projected that the Indian aerospace manufacturing industry could grow from its current $2 billion to a whopping $20 billion in the next decade.
He said, "The industry also wants Indian companies to increase their share of the global aerospace supply chain from the current 1-2% to 10%."
The sector is looking to move beyond basic manufacturing toward design-and-build capabilities and proprietary products such as motors, actuators, and smaller subsystems.
Strategic partnerships
Need for collaboration to build globally competitive aerospace capabilities
Dwarakanath stressed the need for collaboration between industry, academia, and government to help Indian companies build globally competitive aerospace capabilities.
His comments come ahead of AeroConnect 2026, the first conference of the Aerospace India Association (AIA), scheduled for November 19 in Bengaluru.
The event will see participation from over 300 delegates including industry leaders, manufacturers/suppliers, and government representatives among others.