Indian Aerospace Industry Seek Govt Support For 10% Procurement Share to Match Global Order Book

New Delhi, May 15 (KNN) Major Indian aerospace manufacturers are positioning themselves to capitalise on the growing demand for commercial aircraft from the nation's airlines, aiming to secure a larger share of procurement from global aviation giants like Airbus and Boeing.

Simultaneously, these domestic firms are urging the government to implement policies that would facilitate their growth within this lucrative sector, reported ET.

Citing data from the aviation consultancy CAPA, the current order book for Indian carriers IndiGo, Air India, and Akasa stands at nearly 1,700 aircraft, with projections suggesting this figure could swell to around 2,000 by March 2025. This surge in orders has prompted global aerospace suppliers to enhance their sourcing from India.

Aravind Melligeri, chairman of Aequs Aerospace – a key supplier to Airbus – underscored the need for procurement practices to align with the substantial order volumes. “If India has a 10 per cent share of the order book, it should also have a 10 per cent procurement share – it is a fair ask,” Melligeri stated.

He revealed that Aequs, which achieved revenue of Rs 1,000 crore in the fiscal year 2023, is securing fresh contracts as suppliers in other regions struggle to meet the heightened demand.

Melligeri advocated for a policy push from the government to bolster the 'Make in India' initiative in the aerospace sector. “A lot of countries in the Middle East have a policy which mandates manufacturing locally. The government needs to do something to increase India's pie. We don't need a mandate, we just need to promote India,” he added.

Airbus, one of the global leaders in the aviation industry, is deepening its ties with Indian partners and expanding its activities and headcount in the country. Guillaume Faury, the CEO of Airbus, underscored India's significance in terms of activity, sourcing, and manpower, with plans to have approximately 5,000 Airbus employees in India by 2025.

Furthermore, Airbus is partnering with the Tata Group to establish a final assembly line for civil helicopters in India.

Udayant Malhoutra, CEO of Dynamatic Technologies – a firm recently awarded a contract by Airbus for manufacturing aircraft doors for the A220 family of aircraft – highlighted India's advantage as a preferred destination for global manufacturers due to its abundant pool of skilled engineers. “You are expanding and you're sitting on top of a young, skilled population over here. This is a massive opportunity at a macro level for us and you have to just visualise what this means,” Malhoutra emphasised.

As the Indian aviation sector continues its upward trajectory, domestic aerospace firms are positioning themselves to reap the benefits, while advocating for government support to bolster their competitiveness on the global stage.

(KNN Bureau)