Editorial: Domestic aircraft manufacturing, an uphill task

Gaps in supply chains, technology, skilled manpower, and capital pose formidable challenges to India’s domestic aircraft manufacturing

India’s civil aviation market has seen consistent growth, supported by a rapidly expanding middle-class, rising air travel demand, and increasing connectivity between metropolitan areas and regional centres. The passenger traffic is estimated to grow at 6.2% per annum by 2040, the fastest among the major economies and well above the global average of 3.9%. To meet the growing needs of the country’s middle-class, India would require over 2,210 new aircraft over the next 20 years. Like most other major economies, the country depends highly on sourcing aircraft from Boeing and Airbus that have a duopoly in the industry. However, with growing demand for commercial aircraft in India as well as many other parts of the world, supplies have not been able to keep pace. There is now a stronger case than ever for indigenous aircraft production. But the biggest challenge before the country is creating the ecosystem for domestic aircraft manufacturing. This requires thousands of specialised suppliers, ranging from avionics to landing gear. Notwithstanding several challenges, a beginning has to be made somewhere. Adani Group’s recent MoU with Brazil’s Embraer to set up a regional aircraft manufacturing facility in India is a good step. With initiatives like ‘UDAN’ transforming air connectivity across Tier 2 and Tier 3 cities, the need for an indigenous regional aviation ecosystem has become critical. Initiatives such as the Tata-Airbus plant in Gujarat’s Vadodara, deepening collaborations with Boeing and Airbus, and a newly proposed Special Purpose Vehicle (SPV) could boost efforts to develop a self-sustaining ecosystem.

In October last year, India and Russia signed an initial agreement to start manufacturing SJ-100 passenger planes in India by 2029, raising hopes for domestic aircraft production. Building commercial aircraft is a big leap that India is attempting. It requires global certifications, deep supply chains, and unforgiving safety standards. Despite multiple attempts over the decades, commercial aircraft dreams have moved little beyond proposals and prototypes. While India started by supplying components of aircraft to companies, including Boeing and Airbus, the country currently contributes a mere 5% to the global supply chain, lacking super-critical, high-complexity parts and technology to build a commercial aircraft from scratch. Domestic manufacturing of civilian aircraft faces significant hurdles, including an underdeveloped aerospace ecosystem, a lack of critical engine technology, and high capital intensity. Key challenges include a limited supply chain, a shortage of highly skilled manpower, and intense competition from established global players such as Boeing and Airbus. It must be pointed out that India lacks a robust domestic manufacturing ecosystem for aircraft components, requiring reliance on imports for critical parts. Significant expertise gaps exist in advanced disciplines such as jet engine development, high-temperature metallurgy, and precision manufacturing. Also, the sector requires billions in research and development. Despite a high number of engineering graduates, there is a shortage of personnel specialised in advanced aerospace manufacturing techniques.

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