17,000-plane backlog creates big opportunity for India’s aerospace manufacturers. Here’s how

The opportunity stems from a widening gap between demand for new aircraft and the ability of global manufacturers and their suppliers to increase production. According to a Jefferies report dated September 8, the global aerospace industry has an aircraft backlog of more than 17,000 planes, equivalent to around 12 years of production at current capacity.

Constraints across engines, castings, forgings and specialised components, along with labour shortages, higher costs and years of supplier consolidation, are limiting the industry’s ability to expand output. For Indian aerospace companies, these supply-chain constraints are creating opportunities to take on a larger share of global manufacturing.

India’s aerospace exports rise nearly five-fold

India’s growing presence in the sector is shown in its aerospace exports. Exports covering aircraft, spacecraft and parts thereof, increased from around $1.4 billion in FY20 to $7 billion in FY25, according to Jefferies.

The growth has coincided with increasing participation by Indian companies in global aerospace programmes, supported by the country’s engineering workforce, precision manufacturing capabilities and expanding base of certified suppliers.

The opportunity is increasingly moving beyond basic outsourcing, with Indian manufacturers supplying aerostructures, engine components, aircraft systems, electrical interconnects and precision tooling.

Boeing, Airbus increase sourcing from India

Global aerospace manufacturers are already sourcing billions of dollars worth of products and services from Indian suppliers.

Boeing sources around $1.4 billion annually from more than 375 suppliers in India, while Airbus sources more than $1.6 billion a year in components and services from the country, according to Jefferies.

Airbus has outlined plans to increase annual sourcing from India to $2 billion before 2030.

Safran, a French aerospace, defence and security corporation, is also targeting higher sourcing from India, with plans to increase component procurement to around $580 million by 2030, according to the report.

The expansion is taking place across multiple levels of the aerospace supply chain, including structures, engines, systems, components and tooling.

Why global supply-chain bottlenecks matter

Aerospace manufacturing remains concentrated in established production hubs in North America and Europe. Jefferies points to challenges including ageing workforces, wage inflation and labour shortages in these markets.

The pandemic also exposed vulnerabilities in aerospace supply chains, while years of supplier consolidation increased dependence on a smaller number of vendors for critical components.

This has increased the importance of suppliers that can add qualified manufacturing capacity without compromising the stringent quality and safety requirements of the aerospace industry.

Indian companies are increasingly positioned to participate in that supply chain as they obtain international certifications and customer approvals.

Aerospace qualification creates a high entry barrier

Unlike many manufacturing industries, aerospace suppliers cannot enter global aircraft programmes simply by offering lower production costs.

Suppliers typically require certifications such as AS9100, while critical manufacturing processes can require NADCAP accreditation.

They must also undergo customer-specific capability assessments, first-article inspections, process audits and production trials before being approved for specific aircraft or engine programmes. According to Jefferies, qualification can take several years.

Once a supplier is approved and integrated into a programme, however, the long certification and validation process can make it difficult to replace that supplier quickly.

That creates the potential for Indian manufacturers that successfully qualify for global programmes to build long-term relationships with OEMs and Tier-1 suppliers.

Indian companies moving up the supply chain

The expanding Indian aerospace supplier base includes companies such as Aequs, Azad Engineering, Bharat Forge, Dynamatic Technologies, JK Maini, Samvardhana Motherson and Sansera, according to Jefferies. Their portfolios cover a broad range of aircraft and engine components.

Bharat Forge supplies machined components for engines and structures, as well as engine fan blades and landing-gear components. Sansera manufactures aircraft engine casings and components for aircraft doors.

Azad Engineering operates across areas including engine assemblies, auxiliary power units, airfoils, actuators, hydraulic systems, airframes and boosters. Its aerospace customers include Airbus, Boeing, Honeywell Aerospace, GE, Gulfstream, Eaton Aerospace and Rolls-Royce, according to the Jefferies report.

Aequs has capabilities spanning assemblies, structures, turnings, landing systems and engine systems, with customers including Airbus, Boeing, Safran, Collins Aerospace, Saab, GKN Aerospace and Honeywell.

Dynamatic Technologies manufactures wings, rear fuselages, ailerons, wing flaps and other major airframe structures for programmes involving Airbus and Boeing. The opportunity also extends to tooling and electrical systems.

Unimech manufactures aerospace tooling for aero-engine and airframe programmes involving LEAP, Pratt & Whitney, Rolls-Royce, Airbus and Boeing, while Rossell Techsys supplies wire harnesses, electrical interconnects, electronic assemblies and specialised test equipment.

Engines emerge as a key opportunity

Engine manufacturing is among the areas where global aerospace capacity constraints are particularly significant.

The complexity of aircraft engines and the stringent certification requirements for engine components make qualified suppliers especially important as manufacturers seek to increase production.

Jefferies points to the expanding presence of Safran in India and additional investment by GE Aerospace in Pune.

Safran is also developing a helicopter-engine joint venture with Hindustan Aeronautics Ltd, adding another element to India’s growing aerospace manufacturing ecosystem. The Indian supplier base is already participating in engine programmes.

JK Maini Global Aerospace, part of the Raymond Group, manufactures more than 350 components for the LEAP engine, produced by CFM International, the Safran-GE joint venture, according to a separate Antique Stock Broking report cited in the source material.

The brokerage estimates that India’s share of the global aerospace components market could increase from $1.5 billion to $4 billion by FY29, implying a 28% compound annual growth rate.

India’s own aircraft orders add to demand

The opportunity for Indian aerospace suppliers is not limited to exports. India’s domestic aviation market is also generating demand for aircraft and, consequently, aircraft components and maintenance services.

Jefferies points to a combined order book of more than 1,700 aircraft for Indian carriers, led by IndiGo and Air India.

The expanding domestic fleet creates additional demand for aircraft components, maintenance and related services, while Indian suppliers can simultaneously participate in global OEM supply chains.

This creates two sources of potential demand: India’s expanding aviation market and increasing global sourcing from Indian manufacturers.

MRO adds another opportunity

The expansion of India’s aircraft fleet is also supporting the development of the country’s maintenance, repair and overhaul (MRO) sector. Jefferies expects India’s growing fleet and policy support to create a significant MRO opportunity.

The government has allowed 100% foreign direct investment in the sector, reduced GST on aircraft and engine parts to 5%, and extended export and re-import timelines for repair-related activities.

These measures are intended to support the development of India’s aviation maintenance ecosystem alongside aircraft manufacturing and component exports.

From cost advantage to global supply-chain integration

India’s aerospace industry has already moved from a relatively small export base to $7 billion in aircraft, spacecraft and parts exports in FY25, according to Jefferies. The next phase is increasingly focused on deeper integration into global aircraft programmes.

Boeing’s annual sourcing of around $1.4 billion from more than 375 Indian suppliers and Airbus’ sourcing of more than $1.6 billion demonstrate the scale of the existing relationship.

With Airbus targeting $2 billion in annual sourcing before 2030 and Safran also planning higher procurement from India, Indian suppliers are positioned to participate in a growing volume of global aerospace manufacturing.

At the same time, the industry’s more than 17,000-aircraft backlog is placing pressure on manufacturers and suppliers to expand production capacity.

For Indian companies, the opportunity lies across the aircraft value chain: from engine components and aerostructures to avionics, electrical systems, precision tooling and specialised assemblies.

The combination of global aircraft demand, supply-chain constraints and India’s expanding base of qualified aerospace manufacturers is increasing the country’s role in the international aerospace production network.