1,640 Aircraft Orders, $61 Billion Market: India’s Aerospace Supply Chain Push

India is seeking to turn its rapidly expanding aviation market into a globally integrated aerospace manufacturing ecosystem, with Civil Aviation Minister K Rammohan Naidu calling for a decisive shift from assembling imported aerospace components to designing, certifying and manufacturing them in India.

Speaking at VORTEX 2026, organised by the Confederation of Indian Industry (CII) in partnership with the Civil Aviation Ministry, Naidu said India must build a stronger domestic supplier base as aircraft demand rises at home and abroad. Indian airlines have placed orders for 1,640 aircraft, he said, creating an estimated requirement for 80 crore parts and components. India is already the world’s third-largest domestic aviation market, while its commercial fleet is expected to more than double to around 2,050 aircraft.

The opportunity extends beyond domestic demand. Airbus and Boeing together have orders for more than 15,000 commercial aircraft globally, offering Indian MSMEs a potentially larger role in international supply chains. Naidu said Indian MSMEs and startups already supply more than $4 billion worth of aircraft components annually to global original equipment manufacturers.

India’s aerospace and defence market is projected to nearly double from more than $30 billion in 2025 to $61 billion by 2035, while the domestic aerospace manufacturing market could become a $10-billion industry over the next decade. Naidu, however, stressed that this potential would require a deliberate ecosystem spanning technology, skills, certification and manufacturing capacity.

Boeing India and South Asia President Salil Gupte said Boeing sources products and services worth nearly ₹14,000 crore annually from India and has around 300 suppliers, with MSMEs accounting for 25%. He urged Indian companies to move beyond individual components towards complete assemblies, complex systems and intellectual property, describing the goal as “internationalising” Indian aerospace manufacturing.

India’s growing role in global supply chains is already visible through programmes involving Boeing and Airbus, while Tata Boeing Aerospace recently delivered its 400th Apache fuselage from Hyderabad. The C-295 programme is also creating capabilities in aircraft assembly, tooling, certification and supply-chain management.

The push comes as global aerospace manufacturers seek resilient suppliers amid rising aircraft production. Meanwhile, Civil Aviation Secretary Samir Kumar Sinha said different aircraft-manufacturing models are being examined.

AAI Chairman Vipin Kumar highlighted opportunities beyond aircraft, urging Indian firms to design, certify and manufacture airport equipment for domestic use and export. The government’s wider aviation strategy also encompasses MRO, regional connectivity and stronger civil-defence aerospace linkages.

For India, the challenge is now to convert its huge aircraft demand into higher-value industrial capability. The objective is not simply to make more parts in India, but to build Indian companies capable of designing, engineering, manufacturing and exporting sophisticated aerospace systems to the world.