Taking Off

Aerospace & Defence OEMs Are Leaving No Stone Unturned To Ensure That India Stays At The Forefront Of Manufacturing For The World.

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FOR LONG, INDIA HAS ALWAYS BEEN ON THE radar for foreign aerospace and defence OEMs. This is mainly because of its low production cost not to forget the Indian government’s strong focus on building manufacturing sector under Make in India initiative. The country is also rated among the largest markets by internationally linked small-and-medium-size enterprises (SMEs) which plans to expand supplies to Indian customers or form joint ventures in the country to make their components for exports.

Globally, the demand for new aircraft has increased phenomenally. According to market reports, commercial aircraft sector is expected to see a growth rate of 4.8% in FY2018-19 ever since annual passenger traffic increased from 2.5 billion in 2008 to four billion in 2017. This increased demand in the market, coupled with pricing pressure, has led to industry OEMs expanding their supply chain in countries such as India owing to labour arbitrage and easy access to skilled engineers and workers. India’s aerospace manufacturing industry is still in its nascent stage as it is traditionally dominated by defence-related manufacturing. Tier II and tier III suppliers have started making components for the global commercial aerospace market in India only recently.

FLYING HIGH