The aerospace sector is one of the most strategic industries globally, playing a crucial role in defence, civil aviation, space exploration, and technological innovation. However, global supply chain disruptions—triggered by geopolitical tensions, and logistical bottlenecks—have exposed vulnerabilities in the sector. The overdependence on China for components has underscored the need for diversification, and India, with its established reputation for quality and cost efficiency, has emerged as a viable alternative. In recent years, India’s profile has grown significantly as a critical player in the global aerospace supply chain. Indian suppliers have become increasingly integral to original equipment manufacturers (OEMs), by meeting stringent international quality standards.
According to a 2021 report by FICCI and KPMG, Indian aerospace and defence manufacturing is projected to reach $70 billion by 2030, driven by a mix of domestic demand and export opportunities. This growing prominence provides a strong foundation for future growth, but to maintain and expand this position, an industry-specific policy is essential. Pertinently, a national aerospace policy could galvanise India’s aerospace sector, elevating it to global prominence by addressing existing bottlenecks.
Challenges Faced by the Aerospace Industry
Despite India’s growing role in the aerospace sector, only a few states, such as Karnataka, Tamil Nadu, Andhra Pradesh, and Telangana, have developed dedicated aerospace policies. These states have capitalised on their policies to attract investments, build industrial corridors, and foster research and development (R&D) ecosystems. While this has led to localised success stories, the lack of a national framework has created discrepancies in regulations, infrastructure development, and investment incentives across the country, resulting in a fragmented ecosystem.
The aerospace supply chain in India is currently facing multiple challenges that are hindering the sector’s growth. The complex web of national and international regulations for certification adds strain, as navigating these regulations is both time-consuming and expensive. OEMs are increasingly demanding higher efficiency from suppliers, pushing them to deliver faster, reduce costs, and simultaneously enhance quality.
The rapid pace of technological innovations, such as additive manufacturing and digital transformation, also requires significant capital investment and specialised skills, which many companies struggle to keep up with. Furthermore, the heavy reliance on a small number of suppliers poses a significant risk, as any operational difficulties faced by these suppliers can severely impact manufacturers. These combined challenges are stifling the growth of India’s aerospace sector and need to be addressed for the industry to thrive.
The Way Out
A unified national aerospace policy could eliminate the disparities by creating a level playing field, encouraging national and international collaboration, and providing a coherent roadmap for future growth. The policy would focus on creating a robust domestic ecosystem capable of manufacturing indigenous aircraft, reducing import dependence, and ensuring India’s prominence in the global aerospace industry. It will facilitate smoother supply chains, incentivise innovation, and ensure greater regulatory clarity to achieve the following objectives:
Boost to Indigenous Manufacturing: The aerospace sector in India is currently highly reliant on imports, particularly in defence. The policy would provide a roadmap for manufacturing indigenous commercial and defence aircraft, reducing reliance on imports and enabling India to be a global exporter of aerospace products. The Make in India initiative, when integrated into a national aerospace policy, would encourage domestic companies to take up larger roles in aircraft design, component manufacturing, and system integration.
Creation of Aerospace-Specific Infrastructure: To support manufacturing and testing, the policy could emphasise the development of aerospace-specific industrial corridors, R&D parks, and testing facilities. Currently, Indian companies often rely on international testing centres, adding delays and costs to product development. Local facilities would significantly reduce these barriers, speeding up innovation cycles and encouraging more companies to set up operations in India.
Standardisation and Regulatory Alignment: A unified regulatory framework under the policy would align Indian standards with global benchmarks, such as those set by the Federal Aviation Administration (FAA) and the European Aviation Safety Agency (EASA). This alignment would make it easier for Indian companies to integrate into the global aerospace supply chain, easing certification processes and facilitating exports.
Job Creation and Skill Development: The aerospace sector has a massive potential for job creation, particularly in manufacturing, R&D, and maintenance, repair, and overhaul (MRO). A national policy would prioritise the development of specialised training programs, creating a pool of highly skilled professionals capable of meeting both domestic and international demand. Collaborations between the government, academia, and industry could also help tailor education programs to meet industry needs.
Promotion of R&D and Innovation: The policy would significantly boost innovation by providing tax incentives, subsidies, and grants for companies investing in R&D, especially in cutting-edge technologies like advanced materials, propulsion systems, and green technologies. Encouraging public-private partnerships for research projects would further accelerate technological advancements.
Industry Viewpoints
Chandrashekar HG, Chairman and Managing Director of SASMOS HET Technologies Limited, sheds light on the multiple dimensions where the Indian aerospace industry requires concerted support to enhance its global competitiveness. According to him, increased funding, establishment of innovation hubs, and facilitating technology transfers are critical to fostering next-generation advancements in avionics, propulsion systems, and materials science. “Innovation hubs would allow for collaboration between industry, academia, and research institutions,” says he.
Another major aspect he highlights is infrastructure development. “The creation of aerospace clusters with state-of-the-art facilities for manufacturing, testing, and maintenance would be a game-changer,” he explains, adding that such clusters can lead to foreign direct investment (FDI) and forming of strategic alliances with global aerospace giants like Boeing and Airbus. He advocates for enhancing testing and certification facilities to meet international standards and reduce dependence on foreign entities for product validation.
Addressing the challenges around regulatory and compliance support, Chandrashekar suggests streamlining approval processes and aligning national standards with international benchmarks. “Simplifying and expediting regulatory approvals will reduce bureaucratic delays and make the aerospace sector more agile,” he adds.
As financial support remains a vital ingredient for growth, Chandrashekar calls for tax incentives, subsidies, and increased funding for start-ups and SMEs to spur innovation and drive expansion. “Small businesses and start-ups need accessible grants and venture capital to realise their potential,” he points out, emphasising that funding is the bedrock for technological and market growth.
The Indian aerospace industry is also in dire need of skill development and workforce training, Chandrashekar stresses. He urges for specialised education programs that align with industry demands, along with closer collaborations between academia and aerospace firms. “Building a talent pool that’s adept with emerging technologies is paramount to the sector’s long-term success,” he explains.
Expanding market access is equally crucial. “Incentives for export-related activities and the negotiation of favourable trade agreements can significantly ease entry into global markets,” he remarks, addressing the importance of market access and export promotion for fostering India’s international footprint in aerospace.
The CMD of SASMOS HET Technologies also identifies national security and defence integration as a vital area, advocating for the prioritisation of indigenous defence technologies to reduce foreign dependencies and bolster security. He is all for the development of dual-use technologies that can serve both civilian and defence applications, optimising innovation.
Emphasising sustainability and environmental practices in aerospace, he suggests green technology support for sustainable aviation solutions, from electric and hybrid aircraft to biofuels. “Incorporating sustainable practices is no longer optional—it is imperative,” he states, pointing out the long-term ecological benefits.
Chandrashekar calls for mentorship and networking programs that connect start-up founders with experienced professionals, as well as events that foster collaborations. “Guidance from industry veterans is invaluable for start-ups looking to navigate technological, business, and market complexities,” he says.
Additionally, collaborative R&D programs and access to grants are necessary to foster innovation. “Partnerships with research institutions and universities can enable start-ups to leverage cutting-edge technologies and expertise,” he advises.
In terms of business development, government contracts and export assistance are vital. “By providing a stable revenue stream through government contracts and facilitating market entry with export-related assistance, start-ups can establish a solid foundation for growth,” Chandrashekar says.
In the ongoing discourse surrounding India’s aspirations in aerospace, Shekhar Sardessai, Executive Vice-Chairman and Managing Director of Kineco Limited, emphasises that one of the primary challenges faced by organisations in the current aerospace supply chain is the availability and sourcing of raw materials. “India remains a net importer of aerospace-grade alloys, primarily from the US and Europe,” Sardessai explains, highlighting how stringent guidelines set by OEMs often limit procurement to a pre-approved list of suppliers. This restriction guarantees quality but poses a significant barrier for local procurement initiatives. He points out that while some domestic capabilities exist for producing composites, “there are no qualified manufacturers of aircraft-grade carbon fibre,” which is essential for advanced aerospace applications.
Sardessai further notes that meeting the stringent specifications set by OEMs often necessitates the import of specific chemicals used in various aerospace manufacturing processes. “Minimum order quantities force Indian players to purchase excess materials, leading to higher costs and wasted resources,” he explains. He advocates for a national aerospace policy to address these issues effectively.
Discussing the potential impact of such a policy, Sardessai mentions that India is poised to become the third-largest air passenger market in the world by 2030, surpassing both China and the United States. “With 100 additional airports planned to support the Udaan scheme and an anticipated increase in the aviation fleet from 600 to 1,200 aircraft by 2027, the need for a structured national aerospace policy is more pressing than ever,” he asserts.
Sardessai offers several recommendations for developing a comprehensive policy. He suggests that Indian aerospace manufacturing should transition from a “build to print” model to a “build to specifications” approach in a phased manner. “This transition will be crucial for sustainable long-term success,” he states, advocating for knowledge-sharing platforms and research collaborations between the defence and commercial sectors.
To establish a robust aerospace ecosystem, he proposes the creation of independent and shared labs equipped for materials testing, product qualification, and calibration. “Significant investments in infrastructure and training for technicians, engineers, and scientists are necessary to enhance India’s position as a global aerospace manufacturing hub,” he explains.
Sardessai stresses the importance of leveraging existing expertise within agencies like Centre for Military Airworthiness and Certification (CEMILAC) to share knowledge and best practices. “This would not only create a more robust domestic certification system but also enhance the international standing of the Directorate General of Civil Aviation (DGCA),” he points out, explaining how such collaboration could reduce the certification burden for domestic manufacturers and make India a more attractive partner for global OEMs.
India’s rich natural resources present an opportunity, but he warns that “the lack of technology to refine and qualify these resources for aerospace use remains a barrier.” He sees potential in strategic partnerships, increased R&D funding, and fostering industry clusters to propel India towards self-reliance and global competitiveness.
Drawing parallels with international practices, Sardessai suggests that India could benefit from studying the development of the aerospace industry in Brazil and Canada, as well as the evolution of the IT and automotive industries in India. “By adopting successful strategies from these sectors, we can accelerate our growth in aerospace,” he recommends.
The policy should also lay out a roadmap for developing indigenous commercial aircraft, modernising infrastructure, and attracting investment through government schemes and incentives. He emphasises the need for collaboration between government agencies, research institutions, academia, and private companies to foster innovation, knowledge sharing, and technological advancements.
Sardessai calls for initiatives to encourage the growth of start-ups, suggesting the establishment of supplier clusters around major manufacturing hubs. “Subsidies for accessing international aerospace trade shows and dedicated knowledge exchange platforms between aerospace labs and academic institutions will facilitate this growth,” he states.
Takeaways
The need for a comprehensive national aerospace policy in India is long overdue. Such a policy has the potential to address current challenges while building on the country’s existing strengths. By fostering a robust framework for aerospace development, this policy can position India as a global leader in aerospace manufacturing and innovation. One of the key benefits of a national policy would be the facilitation of indigenous aircraft production, which could help India meet its domestic aerospace needs more effectively while also providing it a competitive edge in the global market.
Moreover, the policy would pave the way for expanded infrastructure, the standardisation of regulations, and the creation of high-quality jobs. It could also drive significant technological advancements in areas such as green aviation and sustainable manufacturing. In the post-pandemic world, where supply chain diversification is paramount, India could emerge as a credible alternative to China in the global aerospace supply chain. This strategic positioning would not only boost India’s economic standing but also strengthen its geopolitical influence.
India can draw valuable lessons from international aerospace policies to shape its own framework. For example, the strong collaboration between the government and the industry in the United States, through entities like NASA and FAA, has been a driving force behind sustained growth and innovation. Similarly, initiatives such as Clean Sky, which promotes green aviation technologies in Europe, can serve as a model for sustainable development in India’s aerospace sector. Brazil’s success with Embraer demonstrates the importance of nurturing national champions through government support and the establishment of specialised industrial zones. These international examples provide clear pathways for India to follow in its quest to gain a position of eminence in the global aerospace industry.
–The writer is a senior journalist and Consulting Editor of Raksha Anirveda
