India is making strides toward establishing itself as a hub for aircraft manufacturing, with plans to produce home-grown regional transport aircraft.

Civil Aviation Minister K. Rammohan Naidu recently announced the creation of a Special Purpose Vehicle (SPV) to oversee this initiative, which aims to develop a domestic ecosystem for designing, manufacturing, and maintaining aircraft.

This move aligns with the government's broader Atmanirbhar Bharat initiative for self-reliance and follows the passage of the Bhartiya Vayuyan Vidheyak Bill 2024, which regulates aircraft design and production.

India's aviation market is one of the fastest-growing globally, with domestic airlines placing orders for over 1,500 aircraft to meet rising demand.

The government is leveraging this momentum to reduce reliance on foreign manufacturers like Boeing and Airbus while fostering indigenous capabilities.

Efforts include partnerships with Hindustan Aeronautics Limited (HAL) and advancements in projects like the SARAS MK-2, a 19-seater light transport aircraft featuring indigenous components such as composite wings and advanced avionics.

The SPV will involve industry stakeholders and global aviation leaders, including Boeing and Airbus, who have expressed interest in collaborating with India. The initiative also focuses on Maintenance, Repair, and Overhaul (MRO) activities to position India as a centre for aviation services.

While experts suggest it may take decades to compete with global giants like Boeing and Airbus, smaller-scale projects such as HAL's Regional Transport Aircraft (RTA) are expected to enter service by 2026, marking significant progress in India's aviation ambitions.

Key Challenges

India faces several significant challenges in its pursuit of becoming a global hub for aircraft manufacturing. These challenges span across technological, structural, and policy-related areas:

Aircraft manufacturing requires substantial investment and has long lead times before yielding returns. This makes it difficult for new players to enter and sustain operations in the market.

India faces hurdles in acquiring advanced technologies due to geopolitical constraints and restrictive international policies. The absence of a robust ecosystem for innovation further hampers the development of indigenous aircraft designs.

Bureaucratic inefficiencies, such as multiple permissions and fragmented policies, slow down the pace of progress. A lack of single-window clearance systems adds to delays in setting up manufacturing units.

Aircraft manufacturing relies heavily on a strong network of original equipment manufacturers (OEMs) and ancillary suppliers, which India currently lacks. This limits the ability to produce components domestically, increasing reliance on imports.

While India has a large pool of engineering talent, there is a shortage of specialized skills required for aircraft design and manufacturing. Bridging this gap will require significant investment in training and education.

India's aerospace market, though growing, remains relatively small compared to global standards. This restricts the scale of research and development (R&D) investments needed to compete internationally.

Indian aviation companies are still heavily reliant on partnerships with global giants like Boeing and Airbus for expertise and components, making it challenging to establish self-reliance in the sector.

Despite government initiatives like "Make in India," sustained policy support through tax incentives, subsidies, and infrastructure development is essential but often inconsistent or insufficient.

Competing with established players like Boeing, Airbus, China’s COMAC, Canada's Bombardier and Brazil’s Embraer is daunting, given their decades-long head start and mature ecosystems.

Overcoming these challenges will require a concerted effort involving government support, private sector participation, international collaborations, and long-term strategic planning.

However, despite these inconsistencies, there is a clear signal that government has focus on transforming India into a hub for aviation manufacturing. The efforts aim to reduce the country’s reliance on foreign aircraft manufacturers and build a robust supply chain for the aviation industry within India.

Agencies