TOULOUSE- Airbus is set to significantly boost its sourcing from India, targeting $2 billion in annual component and service procurement by 2030. This strategic move comes amid India’s explosive growth in the civil aviation sector, positioning the country as a critical market for the aerospace giant.
The announcement marks a substantial increase from the current sourcing level of $1.4 billion, highlighting India’s growing importance in global aerospace manufacturing and supply chains.
Photo: AirbusAviation Boom in India
The Indian aviation market presents an extraordinary opportunity for Airbus. Major carriers like IndiGo (6E) have placed substantial orders, including more than 900 planes, while Air India (AI) has committed to 50 A350 wide-body aircraft.
Over 700 Airbus planes operate in India, with an impressive order book exceeding 1,300 aircraft.
The timing of this expansion is particularly strategic. As global aviation continues to recover and grow post-pandemic, India stands out as a beacon of opportunity.
The country’s rising middle class, increasing disposable income, and growing connectivity have fueled unprecedented demand for air travel. Airbus recognizes this potential, positioning itself at the forefront of this aviation boom.
Photo: Pieter ElbersEngineering Expertise in India
Airbus CEO Guillaume Faury has been vocal about the unique strengths of Indian manufacturers, emphasizing the country’s competitive edge in engineering and manufacturing. The company is actively collaborating with leading Indian firms such as Dynamatic Technologies, Tata Group, and Mahindra to expand its supply chain capabilities. This approach goes beyond mere sourcing, representing a deep strategic partnership that taps into India’s robust technical capabilities.
A prime example of this collaboration is the contract awarded to Dynamatic Technologies to manufacture A220 Family aircraft doors. This partnership demonstrates Airbus’s confidence in Indian engineering prowess and its commitment to developing local manufacturing ecosystems.
Photo: Rémi MaillardAerospace Ecosystem in India
The aerospace manufacturer has established significant joint ventures in India, creating a substantial economic impact.
Currently, Airbus employs over 3,600 people across various sites and supports more than 15,000 jobs through its supply chain. Notable projects include a Final Assembly Line (FAL) for C295 military transport aircraft in collaboration with Tata Group and plans for an H125 helicopter FAL.
These partnerships extend beyond mere business transactions. They represent a comprehensive approach to technology transfer, skill development, and economic growth. By investing in local capabilities, Airbus is helping to build a robust aerospace ecosystem in India.
Photo: AirbusChallenges & Solutions
Despite the optimistic outlook, Airbus acknowledges challenges in expertise, human resources, and maintaining sustainable growth. The rapid development of aviation infrastructure, including new airports, underscores the market’s tremendous potential. However, continuous investment in skill development and infrastructure will be crucial to realizing this potential.
Faury stressed the importance of playing to India’s strengths, particularly in engineering, IT, systems, and software. While a Final Assembly Line for current-generation civilian aircraft may not be immediately feasible, Airbus sees immense potential in India’s ability to re-engineer and optimize sophisticated systems.
The company believes India should focus on its unique capabilities rather than attempting to replicate existing global manufacturing strategies.
The expansion comes at a time when the global aviation industry is experiencing significant shifts. With Boeing facing supply chain challenges, Airbus is strategically positioning itself to capitalize on emerging markets.
India’s robust economic growth and increasing global importance make it an ideal partner for long-term aerospace development.
The next decade will be crucial in defining the relationship between Airbus and India, with potential implications for the global aerospace industry. As India continues to soar in aviation, Airbus stands ready to be a key partner in this exciting journey.
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