Airbus Targets $1.5 Billion Parts Sourcing from India Amid Aviation Boom

Airbus aims to double its parts sourcing value from India to $1.5 billion in the coming years, capitalizing on the rapid growth of the country’s aviation market. IndiGo, Air India, and Akasa are expecting deliveries of numerous planes, boosting local component manufacturers. With over 40 suppliers in India, including Tata Advanced Systems and Mahindra Aerospace, Airbus plans to increase sourcing from the current $750 million. Remi Maillard, President of Airbus India and South Asia, stated at the “Wings India” event that global aviation is shifting towards India, and the Indian aviation supply chain is evolving.

India, the world’s fastest-growing aviation market, anticipates a fleet size of over 2,000 planes by 2030. The government’s $12 billion investment in airport infrastructure complements this growth. Civil Aviation Minister Jyotiraditya Scindia highlighted the substantial progress of domestic manufacturers in aerospace, emphasizing that every Airbus and Boeing aircraft now carries a part made in India.

While Airbus and Boeing have focused on increasing sourcing from India, the possibility of setting up a final assembly line for planes in the country is gaining traction. Despite assembly representing a small percentage of a plane’s value, analysts note its significance as a political achievement. The renewed push aligns with significant plane orders, such as IndiGo’s record order for 500 Airbus planes and Air India’s order for 470 planes from both manufacturers. Additionally, on Thursday, Akasa Air placed an order for 150 narrowbody planes from Boeing.