From US$ 250 million to US$ 2 billion: India’s role in global aerospace supply chain grows
- IBEF
- October 23, 2025
Global aerospace majors are increasingly sourcing aircraft components from India, driving strong growth in the country’s aero component sector, according to The Times of India. Domestic firms are scaling operations and moving up the value chain, with several preparing to raise around Rs. 5,700 crore (US$ 649 million) through initial public offerings (IPO). Favourable tariff structures, with aero components attracting only 25% United States (US) import duty compared to up to 50% for textiles and auto parts, have further strengthened India’s position as a key supply hub. Belgaum-based Aequs, which supplies to Airbus, Boeing, and Bombardier, derived 89% of its Rs. 925 crore (US$ 105.5 million) revenue in FY25 from aero components, reflecting the sector’s strong export orientation.
Aerospace sourcing from India has expanded sharply. Boeing now procures over Rs. 8,771 crore (US$ 1 billion) worth of components annually, up from Rs. 2,193 crore (US$ 250 million) a decade ago. In comparison, Airbus aims to source Rs. 17,542 crore (US$ 2 billion) by 2030. Hyderabad-based Azad Engineering, which supplies to Rolls-Royce and Honeywell Aerospace, reported an 84% rise in aerospace and defence revenue to Rs. 81 crore (US$ 9.2 million) in FY25, with its order book reaching Rs. 1,700 crore (US$ 193.8 million). Unimech Aerospace is also expanding through acquisitions and joint ventures to build more complex systems. Industry leaders expect India’s share in the global aerospace supply chain to rise from the current 2% to 10% in the coming years, driven by growing local capabilities, strong OEM partnerships, and alignment with the ‘Make in India’ initiative.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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