Aerospace Industry

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The Indian aerospace industry is one of the fastest growing sectors now. India’s aerospace industry growth indicates that the country is rapidly building capabilities to emerge as a preferred destination to support the global A&D supply chain. The industry has accelerated adoption of new technologies, further leading to demand in areas like data science, cloud computing, cyber security, artificial intelligence (AI), machine learning (ML), and big data analytics. Several Indian start-ups are developing innovative space systems, designing launch vehicles, and manufacturing small satellites to include on future Indian launches. 


The IAF has 40 Tejas MkI on order and another contract for 83 MkIA has been formally sealed as the ‘Biggest Make in India deal’. The naval version of the Hindustan Aeronautics Limited (HAL) Tejas Light Combat Aircraft (LCA) has successfully tested take off and arrested landing from the Indian Navy’s aircraft carrier INS Vikramaditya and is expected to be the first indigenous aircraft to be inducted into the Indian Navy.

In the field of UAVs, DRDO organisations such as the Aeronautical Development Establishment (ADE), the National Aerospace Laboratories (NAL), HAL, and Bharat Electronics Limited (BEL) have been working on different projects.

Urban air mobility (UAM) and advanced air mobility (AAM) will be causing the next big radical change in the existing industry by virtue of innovation. And India is expected to play as a leader in designing and developing these.

How India is building R&D capabilities

India is a hotbed for R&D and digital talent. India’s engineering R&D services sector is expected to reach a valuation of $63 Bn by 2025, up from $31 Bn in 2019. With a strong focus on continuous innovation, India has one of the largest R&D talent pools in the world to address the scalability needs of global enterprises.

India has made significant progress in developing sustainable aviation fuel (SAF) as a substitute to fossil fuel-based aviation fuels. The Council of Scientific and Industrial Research (CSIR) along with the Indian Institute of Petroleum (IIP) is engaged in research and production of SAF. The SAF produced by CSIR-IIP has been formally approved and certified. Some of the Indian Air Force aircraft are powered by this fuel. IndiGo has partnered with CSIR-IIP in the deployment of SAF in India. This Indian carrier has operated an international flight by using SAF.

Many private companies have made rapid strides in developing India as a preferred destination for aero structures, components, sub-assemblies and complex system assemblies. Leading global OEMs have established JVs in India for the manufacturing of aero­space related parts and assem­blies which find their way into many commercial and defence aircraft and helicopters.

The country has many advantages such as low labour costs, high availability of engineering, design and technical manpower and expertise, high growth markets etc and active support from the government policies.

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