India is quickly becoming a key hub for the global aerospace industry. More and more international companies are sourcing parts from the country, helping domestic manufacturers grow fast.
This growth is reflected in strong order books and rising revenues. The sector is also planning to raise around Rs 5,700 crore through upcoming initial public offerings (IPOs). Investors are showing strong interest, supported by a healthy equity market.
Unlike industries such as textiles, gems, or auto parts, which face high U.S. import duties, aerospace components have lower tariffs of just 25%, giving Indian suppliers a competitive advantage.
India Becoming Global Aerospace Hub
According to Aravind Melligeri, chairman and CEO of Belgaum-based Aequs, tariffs are not a major problem for the industry, as quoted in The Economic Times:
We are a critical part of our customer supply chain…It takes years for customers to switch suppliers. Paying tariffs is not a material issue.
Aequs, which supplies Airbus, Boeing, Bombardier, Collins Aerospace, and Spirit Aerosystems, earned 89% of its Rs 925 crore revenue in FY25 from aerospace components alone.
The numbers show the sector’s rapid rise. Boeing sources over $1 billion worth of components from India each year, up from $250 million ten years ago.
Airbus plans to source $2 billion by 2030. Hyderabad-based Azad Engineering, a supplier to Honeywell Aerospace, Rolls-Royce, and Eaton Aerospace, saw an 84% increase in aerospace and defense revenue in FY25. Since its December 2023 listing, the company’s stock has jumped 215%.
Expanding Operations
Azad Engineering’s chairman, Rakesh Chopdar, emphasized the importance of consistent performance and reliability in gaining trust from major aerospace companies:
Earning the trust of an OEM requires years of consistent performance, precision, and reliability….
Azad now has an order book of Rs 1,700 crore, over 20 times its annual sales, and is setting up a new facility in Tuniki Bollaram, Telangana.
Other companies like Unimech Aerospace and Manufacturing are also pursuing growth through acquisitions and partnerships, both in India and overseas.
India is now producing more complex components and subassemblies. The number of SKUs delivered by these companies has grown steadily, showing progress in quality and complexity.
Looking Into the Future
Despite being a major aircraft buyer, India still makes up only 2% of the global aerospace supply chain. However, experts expect this to rise to 10% in the near future.
Melligeri explained:
India is becoming a large aviation market. The global companies know where the market is, so they also need to source components locally.
With continued investments, skill development, and strategic partnerships, India is set to play a much bigger role in the aerospace sector in the next decade.
Bottom Line
India’s aerospace component sector is rapidly growing and proving its value to global aircraft manufacturers.
Companies like Aequs and Azad Engineering are expanding production, raising capital, and investing in advanced facilities, showing that the country can handle complex, high-value aerospace work.
With rising demand, strong investor interest, and strategic partnerships, India is set to become a major player in the global aerospace supply chain in the coming decade.
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