M Shyam Sparsha
India is no longer merely a market for aircraft sales; it is fast transforming into one of the world’s most consequential aerospace manufacturing and innovation hubs. Over the past decade, a convergence of skilled talent, cost efficiency, policy clarity, and strategic intent has propelled India into the global aerospace value chain—drawing the attention of the world’s biggest aviation and defence majors.
The latest signal of this tectonic shift came with the Adani Group signing a Memorandum of Understanding (MoU) with Brazilian aerospace major Embraer, underscoring India’s growing credibility as a destination not just for assembly, but for high-value manufacturing, co-development, and lifecycle support in both civil and defence aviation.
Why the World Is Looking at India
For decades, aerospace manufacturing remained the preserve of a handful of countries—the United States, France, the United Kingdom, and a few others. Escalating labour costs, supply chain vulnerabilities exposed during the pandemic, and geopolitical realignments have forced global aerospace giants to diversify production bases.
India offers a rare and compelling combination:
- A vast, English-speaking engineering workforce
- Operating costs are significantly lower than Western economies
- A rapidly growing domestic aviation market
- Strong government backing for indigenous manufacturing
As a result, global majors such as Boeing, Airbus, GE Aerospace, Safran, and Collins Aerospace have expanded their footprint in India—setting up engineering centres, manufacturing units, and integrated supply chains that now feed directly into global aircraft programmes.
From Back Office to Factory Floor
India’s role in aerospace has evolved dramatically. What began as design support and back-office engineering has moved decisively into precision manufacturing and advanced composites.
Boeing’s Bengaluru facility, for instance, has become a global hub for manufacturing advanced composite floor beams for its commercial aircraft. Airbus, meanwhile, has built a deep supplier ecosystem in India, sourcing components and assemblies across multiple platforms through Indian partners.
Salil Gupte, President of Boeing India and South Asia, captures this transformation succinctly:
“The Indian market is incomparable to any other market as it has a unique blend of particularly attractive things… a skilled workforce, a growing economy, and a burgeoning aerospace ecosystem.”
Boeing, which has maintained a presence in India for over eight decades, has reaffirmed its commitment to local manufacturing, co-production, co-development, and skill enhancement, reflecting confidence in India’s long-term aerospace potential.
Adani–Embraer: A Strategic Inflection Point
The Adani Group’s MoU with Embraer marks a significant milestone in India’s aerospace journey. Embraer, the world’s third-largest civil aircraft manufacturer and a major defence aviation player, brings deep expertise in regional aircraft, military transport, special mission platforms, and MRO services.
For India, the partnership is strategically important on multiple fronts:
- It aligns with the push for defence indigenisation and reduced import dependence
- It strengthens India’s position in the regional and tactical aviation segments
- It reinforces India’s ambition to become a global MRO and lifecycle support hub
For Embraer, India offers scale, talent, and proximity to one of the world’s fastest-growing aviation markets. For Adani Defence & Aerospace, the collaboration fits squarely into its goal of building globally integrated aerospace and defence manufacturing capabilities within India.
A Market Too Big to Ignore
India’s domestic aviation growth is itself a powerful catalyst. According to Boeing’s Commercial Market Outlook, South Asia will require over 2,700 new aircraft over the next 20 years, with nearly 90 per cent destined for India. Cargo aviation is also expanding rapidly, with India’s freight fleet projected to reach 80 aircraft within two decades.
This growth is not just about airlines—it is driving demand across manufacturing, maintenance, logistics, avionics, and supply chain services.
Hitendra Mankani, Chief Commercial Officer of DB Schenker India, highlights the ripple effect:
“India’s rise as a manufacturing and supply chain hub for aerospace firms is driving increased freight volumes… underlining the critical role of efficient logistics in the evolving aerospace landscape.”
Policy as an Enabler, Not an Obstacle
Recognising aerospace as both a strategic and economic priority, the Indian government has taken deliberate steps to attract investment and build domestic capability. The Production-Linked Incentive (PLI) scheme, launched in 2020 for aerospace and drones, offers targeted financial incentives to companies manufacturing in India.
Combined with initiatives under Make in India, defence procurement reforms, and liberalised FDI norms, the policy has shifted from mere intent to execution—providing long-term visibility to investors and manufacturers alike.
From Participant to Powerhouse
India’s aerospace story today is not about ambition alone—it is about execution, integration, and scale. The presence of global OEMs, the rise of Indian private sector champions, and strategic collaborations like Adani–Embraer signal a decisive move up the value chain.
As supply chains globalise and geopolitics reshapes industrial strategy, India is positioning itself not as an alternative, but as a central pillar of the global aerospace ecosystem.
The runway is long, the engines are running, and India is clearly preparing for take-off as a major aerospace power.
