Aerospace Giants Turn to India for Parts Amid Supply Chain Woes

Photo: Rolls Royce

India-West News Desk

BENGALURU– As the global aerospace industry faces supply chain disruptions, major companies like Airbus, Collins Aerospace, Pratt & Whitney, and Rolls-Royce are increasingly turning to India for parts, boosting growth in the country’s aerospace sector, Reuters reported. 

Indian companies such as Hical Technologies and JJG Aero are benefiting from this trend. Hical, based in Bengaluru and a supplier to companies like Raytheon Technologies and Boeing, aims to double its revenue from aerospace to $57.57 million in the next three years, Reuters was told. JJG Aero, which took 12 years to reach $2 million in revenue, has grown to $20 million in just six years, according to Reuters.

This shift is part of a larger growth trend in the Asia-Pacific aerospace industry, which is expected to grow by 54% in 2024 compared to 2019, while North America and Europe are seeing slower growth, according to Accenture Research, Reuters noted. As global aerospace companies deal with production delays, labor shortages, and supply issues, India has become a key partner to meet the rising demand for air travel. “India is the best solution to supply chain challenges,” said Huw Morgan, senior vice president for aerospace procurement at Rolls-Royce, according to Reuters. “Our engine volumes are growing at around 20%, and the traditional supply chains just can’t keep up.” Rolls-Royce plans to double its sourcing from India within five years, Reuters reported.

The Aerospace India Association predicts India’s aerospace industry will capture 10% of the global supply chain market within 10 years, with the global market expected to reach $250 billion annually by 2033. While India faced challenges like its distance from key markets and slow certification processes, experts now believe the country is well-positioned to become a global leader in aerospace, Reuterssaid.