Govt Urges Msmes To Enter Aerospace Manufacturing As India's Aviation Market Expands

(MENAFN- KNN India) New Delhi, Sept 11 (KNN) The Ministry of Civil Aviation is encouraging Indian micro, small and medium enterprises (MSMEs) to diversify into aerospace manufacturing and join global supply chains as the country's aviation market enters a period of rapid expansion.

Addressing Confederation of Indian Industry (CII) and the Ministry of Civil Aviation's VORTEX 2026 initiative, Civil Aviation Minister Kinjarapu Ram Mohan Naidu said India's aerospace and defence market is projected to nearly double from over USD 30 billion in 2025 to USD 61 billion by 2035.

India's commercial aviation fleet is also expected to more than double to around 2,050 aircraft, creating substantial opportunities for domestic manufacturers of components and equipment, reported ANI.

Naidu said the government wants to replicate the success of India's auto-component and mobile phone manufacturing sectors in aerospace by enabling companies from other industries to enter the sector.

He noted that Indian carriers have an order book of 1,640 aircraft, translating into an estimated requirement for around 80 crore parts and components. Passenger traffic is projected to grow at a compound annual growth rate of 8.9 per cent through 2035, among the fastest rates across major economies.

MSME Exports Triple

Naidu said MSME exports have increased three-fold from around Rs 4 lakh crore in 2021 to Rs 12.4 lakh crore in 2025, with more than 1.73 lakh MSMEs now exporting directly.

He also pointed to more than 15,000 commercial aircraft on order globally with Airbus and Boeing, offering Indian companies an opportunity to become part of international aerospace supply chains.

Civil Aviation Secretary Samir Kumar Sinha said India is already the world's third-largest domestic aviation market, while the number of operational airports has increased from 74 in 2014 to 166 currently.

The Indian fleet has grown from around 350 aircraft in 2014 to approximately 874, with more than 2,000 additional aircraft expected over the next two decades.

Sinha said Indian MSMEs and startups currently supply more than USD 4 billion worth of aircraft components annually to global original equipment manufacturers (OEMs), while India's domestic aerospace manufacturing market could reach USD 10 billion over the next decade.

He stressed that MSMEs will need to strengthen technology, quality systems, skills and production scale to meet aerospace industry requirements.

Opportunities Beyond Components

Airports Authority of India Chairman Vipin Kumar said rising passenger traffic would create opportunities across aircraft components, maintenance, repair and overhaul (MRO), ground equipment, navigation systems, airport technology and training.

Boeing India and South Asia President Salil Gupte said Boeing has around 300 Indian supplier partners, of which MSMEs account for about 25 per cent.

He said the focus now needs to shift from establishing manufacturing capability to scaling it rapidly.

VORTEX 2026 seeks to bring capable MSMEs from outside the aviation sector into the aerospace ecosystem and familiarise them with industry standards, technical requirements and business processes.

(KNN Bureau)

MENAFN11092026000155011030ID1111651079