The Group Chairman of Sky One adds that the growing demand for air travel and MRO services can also drive the industry’s growth
At a recent international conference on the future of India’s aviation and aerospace industry held in Bangalore, several industry leaders raised two key concerns that could slow down India’s rapid growth. These include the shortage of skilled professionals and the heavy dependence on imported components. With nearly 98 per cent of aviation parts still sourced from abroad, many believe this could become a significant obstacle, especially following the reciprocal tariffs announced by the United States that are expected to affect all imports.
According to Grand View Research, India’s aerospace parts manufacturing market was valued at US$13.6 billion in 2023 and is projected to grow at a compound annual rate of 6.8 per cent from 2024 to 2030. As airlines expand their fleets and modernise aircraft, the demand for aerospace components is expected to increase. Experts believe this is the right time for India to develop a stronger domestic base to reduce reliance on international suppliers.
“We are still assessing the impact of the US tariffs, particularly for India which has placed large orders for newer aircraft. North America accounts for around 50 per cent of the global aerospace parts market, and the new tariff is likely to increase the cost of imported components and raise maintenance and repair expenses. In this scenario, one practical solution is to step up efforts toward indigenisation, especially in manufacturing,” says Jaideep Mirchandani, group chairman of Sky One.
He adds that with more passenger traffic and expanding airline operations, the demand for MRO services within India will continue to grow. “This trend can drive the need for locally made aircraft components and related services. India’s strengths in software development, cost-effective labour, ease of doing business, and supportive policies offer a strong foundation for aerospace manufacturers to establish and scale operations,” says Mr Mirchandani.
He points out that Indian companies producing landing gear, wing structures, fuselage sections, electrical switches, and motion control systems are now playing a crucial role in the supply chain. “Many leading aircraft and engine makers are already sourcing parts from India. We are also seeing increasing partnerships between Indian suppliers and global manufacturers, which can lead to better technology access and improved production capabilities. Strengthening the MRO sector, investing in research and development, and developing a skilled workforce are all essential steps in building a reliable indigenous manufacturing ecosystem,” he concludes.
