India's aspirations to establish itself as a prominent global player in the commercial aircraft manufacturing industry are gaining momentum, despite the challenges that lie ahead. Industry experts recognize the immense potential in this endeavor and emphasize the need for a multifaceted approach to achieve this goal.
India has already emerged as a growing sourcing hub for the global defense and aerospace industry. Experts suggest that with government support, this existing ecosystem can be further developed over time to facilitate the creation of a robust commercial aircraft manufacturing capability. Drawing parallels, they point to the success of India's space program, where a collaborative and strategic effort has led to remarkable achievements.
In the rapidly evolving aerospace landscape, India has emerged as a formidable force, showcasing its impressive capabilities through a series of indigenous developments. From the cutting-edge Polar Satellite Launch Vehicle to the historic Chandrayaan-3 mission, which made India the first to land near the lunar south pole, the nation's technological prowess is undeniable.
The Tejas multi-role supersonic fighter and the successful foray into military and civilian drone technology further exemplify India's growing expertise in the aerospace sector. These remarkable achievements are a testament to the country's commitment to self-reliance and its ability to push the boundaries of innovation.
Karnataka, particularly the bustling city of Bengaluru, has become a hub for aircraft parts manufacturers, cementing India's status as a global player in the aerospace industry. A recent report by the Government of Karnataka's Invest Karnataka initiative reveals that the state houses 25% of India's spacecraft and aircraft industry, while contributing a staggering 67% of all aircraft and helicopters for the country's defense services. Moreover, the state accounts for 65% of India's aerospace-related exports, showcasing the significant role it plays in the nation's aerospace ecosystem.
This thriving ecosystem is supported by a robust network of large enterprises, such as Hindustan Aeronautics Limited (HAL), the Defence Research & Development Organisation (DRDO), and Dassault Systemes, as well as more than 2,000 MSMEs engaged in niche sub-contracting work. The presence of global giants like Boeing and Airbus, who have set up dedicated research, technology, and development centers in Bengaluru, further underscores India's attractiveness as a hub for aerospace innovation and manufacturing.
Prime Minister Narendra Modi's inauguration of the Boeing India Engineering & Technology Center in Bengaluru, a Rs 1,600 crore, 43-acre campus, is a testament to the country's growing stature in the global aerospace industry. As the Prime Minister aptly stated, "Given that there is so much potential in India, we need to rapidly build an aircraft manufacturing ecosystem in the country."
The domestic aviation industry has also experienced remarkable growth, with a surge in air passenger traffic and government initiatives to develop small and big airports across the country, as well as encourage rural air connectivity. This has led to a significant increase in aircraft orders, with India-based carriers Akasa Air, IndiGo, and Air India collectively ordering 1,120 planes.
Furthermore, global aerospace giants like Boeing and Airbus are increasingly looking to India as a strategic sourcing partner. Boeing's annual sourcing from India has risen from $250 million to $1.25 billion in nearly a decade, making the country the largest foreign original equipment manufacturer (OEM) exporter for the company.
The liberalization of aviation policies, including the privatization of airports, relaxed FDI rules, and open sky policies, have also contributed to the growth of the supplier industry. Offset requirements imposed by defense contracts have further stimulated local manufacturing, positioning India favorably in the global aerospace landscape.
While the path to manufacturing a fully indigenous commercial aircraft may present challenges, India's growing capabilities in aerospace engineering and manufacturing, coupled with the support of the government and the private sector, suggest that the realization of a "made in India" civilian plane is not an insurmountable task. With continued investment, strategic partnerships, and a focus on innovation, India's aerospace dreams may soon take flight, cementing the country's position as a global leader in the industry.
Jhunjhunwala of JJG Aero acknowledges the country's current limitations, stating, "First, we need to have the technology and ecosystem in place to make all the pieces. Today, the Indian aircraft supply chain is working on being a significant player in this ecosystem. We currently have a share of less than 5% of the global aeroplane parts supply chain." However, he remains optimistic, noting that "several have tried to" manufacture their own aircraft from scratch, and believes that with "strong government-to-government involvement and the deepest of pockets," India can make significant progress in the near future.
Priyadarshini of Primus Partners emphasizes the complexity and sophistication involved in commercial aircraft production, which far exceeds the requirements for military aircraft and even spacecraft. She highlights the need for "meeting stringent international certification standards, extensive testing, and the development of cutting-edge innovations across multiple disciplines" to successfully transition from component manufacturing to building complete commercial aircraft.
To address these challenges, industry experts recommend a multifaceted approach. Maneck Behramkamdin, SVP & Business Head of Godrej Aerospace, stresses the importance of strategic partnerships with global Original Equipment Manufacturers (OEMs) for technology transfer and market access, sustained investment in research and development to encourage indigenous innovation, and the development of a comprehensive ecosystem involving suppliers, manufacturers, and regulatory authorities.
The experts believe that a well-coordinated national-level programme is crucial to integrate the various stakeholders, including the Defence Research and Development Organisation, Hindustan Aeronautics Limited, MSMEs, and startups. Behramkamdin emphasizes the need for a "will to do it" and a "holistic programme" to ensure the success of commercial aircraft manufacturing in India.
The government has taken some initial steps, such as the announcement of the National Civil Aircraft Development Program in 2017 for the development of a 90-seater aircraft. However, Priyadarshini notes that more sustained support is essential for funding, technology transfer, and skill development.
Despite the obstacles, the experts remain optimistic about India's potential in the commercial aircraft manufacturing sector. Behramkamdin believes that with a focused approach and government-funded programmes, India can achieve significant developments in its commercial aeroplane manufacturing ecosystem within the next 10 years.
The recent partnership between Airbus Helicopters and the Tata group to set up a final assembly line in India is seen as a promising step towards realizing this vision. With the right strategies, collaborations, and sustained commitment, India's journey towards becoming a global player in commercial aircraft manufacturing can become a reality.
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