Airbus Plans to Increase India Sourcing to USD 2 Billion by 2030
Airbus has announced plans to expand its sourcing of aerospace components and services from India to USD 2 billion annually by 2030. This marks a significant rise from the current procurement level of USD 1.4 billion, reflecting India's growing role in the global aerospace supply chain.
The company is working with Indian manufacturers such as Dynamatic Technologies, Tata Group, and Mahindra to strengthen its supply network. A notable example is Airbus' contract with Dynamatic Technologies for the production of A220 Family aircraft doors.
Airbus currently has over 700 aircraft operating in India, with more than 1,300 on order. Airlines including IndiGo and Air India have placed substantial aircraft orders, further reinforcing India's importance to Airbus’ global operations.
Beyond component sourcing, Airbus has established multiple joint ventures and projects in India. The company, which employs over 3,600 people in the country, supports an estimated 15,000 additional jobs through its supply chain. Key initiatives include a Final Assembly Line (FAL) for the C295 military transport aircraft in collaboration with Tata Group and plans for an H125 helicopter FAL.
Airbus CEO Guillaume Faury has highlighted India’s engineering and manufacturing capabilities as critical strengths. While the company does not plan a Final Assembly Line for civilian aircraft in the immediate future, it sees potential for India in engineering, IT, systems, and software optimization.
Challenges remain in the form of skill development and infrastructure expansion. However, Airbus continues to invest in local expertise, aligning its strategy with India’s growing aerospace ecosystem.
The expansion of Airbus' India operations comes at a time of shifting dynamics in the global aviation industry. As Airbus increases its footprint in India, the country’s role in the aerospace sector is expected to expand further in the coming years.