Hical Technologies and JJG Aero, located in Bengaluru, are benefiting from this trend. Hical, supplying to major firms like Raytheon Technology and Boeing, plans to double its revenue to 5 billion rupees ($57.57 million) in three years, as stated by joint managing director Yashas Jaiveer Shashikiran.
JJG Aero, also based in Bengaluru’s industrial sector, took 12 years to reach $2 million in revenue but grew to $20 million in the past six years, noted CEO Anuj Jhunjhunwala.
This growth is part of a larger boom in the Asia-Pacific aerospace market, with revenue in 2024 expected to be 54% higher than in 2019. In contrast, North America and Europe are projected to be 3% and 4% lower, respectively, according to Accenture Research.
Jhunjhunwala mentioned that companies are now seeking out Indian machine shops, which marks a significant change. Contracts are being finalized more swiftly, and onboarding processes have become faster than before.
The firms manufacture crucial parts for landing gear, wings, fuselage, electrical switches, and motion control systems that are vital for safety and performance in flight.
Leading Western aircraft and engine manufacturers are looking to source more parts from India to meet the increased demand for air travel. Their production has faced challenges due to strikes, production limits, and shortages of parts and labor since the pandemic.
"India is the best solution to supply chain challenges,” Huw Morgan, senior vice president for aerospace procurement at Rolls-Royce, said last week at an industry event.
"Our engine volumes are growing at around 20% and the traditional supply chains are just not able to support it," Morgan said. "India is ... the best cost market."
The British company aims to double its sourcing from India in the next five years. India is one of the largest aircraft buyers globally, but it represents only 1% of the worldwide supply chain market, as noted by the new Aerospace India Association.
Aravind Melligeri from Aequs pointed out that the aerospace industry has reached a significant turning point post-COVID. Although this shift began in 2020, changes take time in this slowly evolving industry.
India ranks as the third-largest domestic aviation market by seats and is experiencing rapid growth in demand for maintenance services and parts. Major aircraft orders from IndiGo and Air India are boosting the entire aviation sector, as stated by Air India CEO Campbell Wilson.
While Indian companies have supplied the $180 billion global aerospace market for years, they are now advancing to higher-value tasks such as design, engineering, and system integration. In 2024, Airbus awarded its second aircraft door contract to Indian suppliers within a year. Michel Narchi, Airbus's head of international operations, noted that India currently contributes over 1 billion euros to the overall Airbus supply chain and expects to double this amount. Today, every commercial Airbus aircraft includes parts made in India.
Last week, India's civil aviation ministry met with industry leaders to discuss enhancing component manufacturing, according to AIA Director General Srinivasan Dwarakanath. The association includes both Indian and global firms. He emphasized that local sourcing of raw materials like aluminum, steel, and titanium is essential for adding real value, along with certification of designs by Indian suppliers.
The AIA forecasts that India's aerospace industry will capture 10% of the global supply chain market within ten years, with the global market expected to reach $250 billion annually by 2033. Hical's Yashas Jaiveer noted that India's geographical distance from main markets in the U.S. and Europe posed initial challenges, including engineering approvals and raw material sourcing. It took time to develop the ecosystem, but India is now ready.