Defense News ,India :- Airbus is poised to significantly increase its reliance on Indian suppliers, aiming to double its sourcing value from the country to $1.5 billion in the near future, according to the company's India chief. The move is prompted by the surge in India's aviation market, which is currently the world's fastest-growing. Major Indian carriers, including IndiGo, Air India, and Akasa, are anticipating the delivery of hundreds of new planes over the next decade, providing a significant boost to local component manufacturers. Airbus, which already collaborates with over 40 suppliers in India, such as TATA Advanced Systems and Mahindra Aerospace, envisions an expansion of its commercial and defense aircraft components and services.
Remi Maillard, President of Airbus India and South Asia, made this announcement during the "Wings India" event in Hyderabad. He expressed the company's anticipation of the burgeoning Indian aviation supply chain and highlighted the transformative growth underway. India's aviation market is set to witness a substantial increase in its airline fleet size, projected to surpass 2,000 by 2030 from the current 700. The Indian government is actively investing approximately $12 billion in constructing new airports and upgrading existing ones to support this growth.
Civil Aviation Minister Jyotiraditya Scindia, present at the event, commended the substantial progress of domestic manufacturers, noting their significant capacity expansions. Scindia highlighted that aerospace manufacturing has firmly established its roots in India. He emphasized that every Airbus and Boeing aircraft globally incorporates parts manufactured in India. While acknowledging India's aspiration for jet assembly, Airbus and Boeing have predominantly concentrated on enhancing sourcing and procurement from the country.
Despite assembly representing only 5% to 7% of a plane's overall value, there is growing interest in establishing assembly lines, viewed as politically significant. IndiGo's historic order for 500 Airbus planes and Air India's acquisition of 470 planes from both Airbus and Boeing further underscore the current momentum in large plane orders. As India continues to emerge as a vital player in the global aviation landscape, the prospect of Airbus and Boeing setting up final assembly lines within the country is gaining traction.
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