Global giants press for PLIs on aerospace components

Airbus, Boeing, Pratt & Whitney seek production-linked incentives like the one for drones

- Abhishek Law [e-mail]

Airbus, Boeing, Pratt & Whitney seek production-linked incentives like the one for drones

(AFP)

Top global aerospace firms are urging India to bring a production-linked incentive (PLI) scheme for aerospace components, cautioning that the country could miss out on major manufacturing shifts unless it delivers a long-pending policy trigger.

With Morocco, Turkey and Japan rolling out aggressive incentives, industry executives say India risks losing momentum in the industry unless it moves quickly.

Cutting across original equipment manufacturers (OEMs) including engine-makers such as RTX’s Pratt & Whitney, airframe leaders like Airbus and Boeing, as well as several domestic players, the companies are seeking a scheme for aerospace component manufacturing on the lines of the PLI for drones that had expired in FY24.

The scheme, say executives, could lead to foreign OEMs expanding sourcing, investing deeper and shifting more high-value production to India. The biggest hope is that some of these players would set up their final line assembly in the country.

“The government’s PLI scheme for drones fast-tracked local capability,” Ashish Saraf, VP & country head, India at Pratt & Whitney, told Mint. “A similar PLI for aerospace and defence could have a transformative impact, especially given the sector’s capital-intensive nature and complex supply chains.”