India’s aerospace ambitions take flight

India is making significant strides toward aerospace self-sufficiency, with Tata Advanced Systems partnering with Airbus to establish helicopter and military aircraft assembly lines in Karnataka and Gujarat.

These ventures mark India’s first private-sector aerospace manufacturing facilities and pave the way for indigenous civil aircraft production. While commercial aircraft manufacturing is complex and dominated by Boeing and Airbus, India’s growing air travel demand and strategic investments in technology and infrastructure position it to enter this space.

India’s aspirations to achieve self-sufficiency in aerospace manufacturing are gaining momentum. While the country has made rapid progress in exporting aerospace components and services, building a fully indigenous civil aircraft remains a long-term goal. However, significant steps by major Indian conglomerates, particularly the Tata Group, are paving the way toward realizing this ambition. 

Here, It is important to note that India’s aviation market, was valued at US$ 14.47 billion in 2024 and is projected to grow significantly in the coming years. According to IMARC Group, the market is expected to reach US$ 40.81 billion by 2033, registering a CAGR of 12.21% between 2025 and 2033.

TASL-Airbus collaboration

A notable development in this journey to achieve self-sufficiency is the collaboration between Tata Advanced Systems Ltd (TASL), the aerospace arm of Tata Group, and European aviation giant Airbus. The two have announced the establishment of a Final Assembly Line (FAL) for Airbus’s H125 helicopters in Kolar, Karnataka. This marks India’s first privately-led helicopter assembly facility and the fourth such H125 FAL in the world, after France, the U.S., and Brazil. The facility will cater to the domestic market and neighboring countries, indicating India’s growing role in civil aviation manufacturing.

This helicopter project follows closely on the heels of another key venture. In 2023, TASL and Airbus inaugurated a C-295 military aircraft assembly plant in Vadodara, Gujarat — India’s first private-sector final assembly line for military aircraft. The two ventures, launched within a span of just 12 months, signify India’s increasing focus on domestic aerospace production, both civil and military. 

During the inauguration of the Vadodara facility, Prime Minister Narendra Modi emphasized the potential of these ventures to lay the groundwork for the development and manufacture of civil aircraft in India. He highlighted India’s goal of becoming an aviation hub and projected the facility’s future role in designing and manufacturing civil aircraft.

These moves suggest that India is gradually working toward building a complete passenger aircraft. 

Commercial aircraft manufacturing

While manufacturing military jets is already within India’s capabilities — with Hindustan Aeronautics Ltd. (HAL) producing fighter aircraft and developing a 19-seater civil aircraft — the leap to full-scale commercial aircraft manufacturing is far more complex. The sector has long been dominated by a duopoly of Boeing and Airbus, which collectively hold nearly 90% of the global market. 

Entering this space requires mastering intricate technological, regulatory, and logistical challenges.

China’s example illustrates the difficulty of this endeavour. It took decades for China to develop its mainline commercial aircraft, the COMAC C919, which finally took flight in 2023. Despite being a symbol of China’s strategic ambition to reduce reliance on Western manufacturers, the C919 still lacks full international certification and remains dependent on foreign technology. China reportedly invested between US$ 49 billion and US$ 72 billion over 12 years in the C919 project, highlighting the immense scale of investment required.

India is only beginning its journey in commercial aircraft manufacturing, but the timing appears opportune. Several market factors align in favour of India. These include- 

• The country has a population of 1.4 billion and aims to become a developed economy by 2047. 
• Economic growth is expected to be among the fastest within the G20 nations, and 
• the expanding middle class is projected to fuel a sharp rise in air travel demand. 

According to an Airbus report, India’s passenger traffic is expected to grow at 6.2% annually by 2040 — well above the global average of 3.9%.

This anticipated surge in demand is already reflected in commercial behavior. Indian airlines have placed orders for more than 1,200 aircraft and are expected to require over 2,200 new aircraft over the next two decades. 

Currently, India is heavily reliant on imports from Boeing and Airbus, but global supply chains have struggled to keep pace with rising demand — not just in India, but in other regions such as Latin America and the Gulf. This supply-demand gap presents a strategic opportunity for India to establish itself as a manufacturing base for commercial aircraft.

The Challenges 

India’s current contribution to the global aviation supply chain is modest, estimated at just 5%. The country primarily produces basic components and lacks the capacity to manufacture super-critical or highly complex parts essential for commercial aircraft. Building this capability will require substantial investments, global technology partnerships, and a sustained policy push.

Progress is being made on some of these fronts. Both Boeing and Airbus have established dedicated research and development centers in India. For instance, in January 2023, Prime Minister Modi inaugurated Boeing’s India Engineering & Technology Center in Bengaluru — a ₹1,600 crore (US$200 million), 43-acre facility. This center, Boeing’s largest investment outside the U.S., is expected to play a key role in developing next-generation aerospace products and services.

According to a PwC-CII report, the costs involved in setting up a full-fledged commercial aircraft manufacturing industry run into billions of dollars. Without significant government support and international collaboration, it would be nearly impossible for India to build a commercial aircraft independently from scratch. However, the Tata-Airbus ventures — though currently focused on defence and civil helicopters — are important first steps. They help build the ecosystem, develop skilled manpower, and attract further investment into the sector.

In conclusion, while the dream of building an indigenous commercial aircraft is ambitious and fraught with challenges, India is beginning to put the necessary infrastructure in place. With growing domestic demand, supportive policy environments, and strategic partnerships, the country is on the path to becoming not just a consumer but a manufacturer of commercial aircraft.