From $250 million to $2 billion, global aerospace giants deepen sourcing from India as local firms expand and eye IPOs.
India’s role in the global aerospace supply chain is expanding rapidly, with sourcing from global aircraft manufacturers growing nearly eightfold in a decade, from about $250 million to over $2 billion. According to The Times of India, this surge reflects how global giants such as Airbus, Boeing, Bombardier, and Collins Aerospace are increasingly depending on Indian suppliers for key aerostructures and precision-engineered components.
Industry analysts say Indian aerospace firms have evolved from low-value fabrication to producing complex, high-tolerance parts, positioning the country to capture a much larger share of the worldwide aerospace value chain.
Global majors boost sourcing
Boeing now sources more than $1 billion worth of components annually from India, up from $250 million ten years ago, while Airbus has committed to procure $2 billion worth of parts from India by 2030. These volumes include critical systems, avionics subassemblies, and machined structures supplied by tier-1 and tier-2 Indian vendors.
Domestic firms scale operations
Leading Indian manufacturers are responding with capacity expansion, technology upgrades, and overseas acquisitions. Belgaum-based Aequs, which serves Airbus, Boeing, Bombardier, Collins Aerospace and Spirit AeroSystems, earned ₹925 crore in FY25, with 89 percent of its revenue from aerocomponents.
“Tariffs are beyond our control, but we are a critical part of our customers’ supply chain,” said Aequs Chairman and CEO Aravind Melligeri, noting that the company’s long-term relationships with U.S. clients insulate it from trade disruptions. Aequs has also secured SEBI clearance for a ₹1,700 crore IPO to fund future expansion.
Azad Engineering reports record growth
Hyderabad-based Azad Engineering, a supplier to Honeywell Aerospace, Rolls-Royce, and Eaton Aerospace, saw an 84 percent jump in aerospace and defence revenue to ₹81 crore in FY25. Since its December 2023 listing, its share price has surged 215 percent, reflecting rising investor confidence in India’s aerospace sector.
“Our ability to deliver life-critical, highly engineered components with consistent precision has earned us long-term contracts,” said Chairman and CEO Rakesh Chopdar. Azad’s order book of ₹1,700 crore, more than 20 times its annual sales, has prompted the company to build an additional plant at Tuniki Bollaram, Telangana.
Consolidation and new ventures
Unimech Aerospace and Manufacturing is pursuing acquisitions and joint ventures to expand its footprint. “We are evaluating precision manufacturing targets in both India and the U.S.,” said co-founder Rajanikanth Balaraman. The company delivered 4,769 SKUs by June 2025, adding 381 new products since March, underscoring India’s growing competence in complex assemblies.
Meanwhile, SMPP has also received SEBI approval for a ₹4,000 crore IPO, according to data from Prime Database. Together, Aequs and SMPP’s planned listings will mobilise around ₹5,700 crore in fresh capital for the industry.
Favorable trade dynamics
Unlike sectors such as textiles, gems, or auto parts, where U.S. import duties reach up to 50 percent, aerospace components face tariffs of only 25 percent, making them less exposed to trade barriers. Executives say India’s competitiveness lies not only in lower costs but in sustained engineering quality and supply reliability, which global OEMs cannot easily replicate elsewhere.
A fast-growing market and supply hub
Despite being one of the world’s fastest-growing aviation markets, India currently accounts for just 2 percent of the global aerospace supply chain. However, industry leaders expect this share to rise to 10 percent within a decade, supported by strong domestic demand, policy backing under PM Gati Shakti and Make in India, and major private-sector investment.
“India is turning into a large aviation market for global companies,” Melligeri said. “As the market grows, OEMs want significant procurement to happen here too.”
Outlook
The combination of robust export orders, a buoyant equity market, and rising investor appetite positions India’s aerospace manufacturing for sustained double-digit growth. Analysts say the upcoming IPO wave will accelerate capacity building and automation, helping Indian suppliers move further up the global aerospace value chain.
From $250 million a decade ago to $2 billion today, India’s aerospace story has taken off, anchored by innovation, precision engineering, and a new generation of globally competitive manufacturers.
Source: TOI
