Aircraft manufacturer Airbus is set to ramp up its annual sourcing of components and services from India, increasing the value to $2 billion before 2030.
This move underscores India’s growing importance in Airbus’ global supply chain, CEO Guillaume Faury said. Currently, Airbus procures around $1.4 billion worth of components and services from India, a country that is emerging as one of the fastest-growing civil aviation markets worldwide, reported PTI.
Faury emphasised that India should leverage its strengths rather than replicate existing aerospace models. He highlighted that a key challenge for Airbus is to align with the rapid expansion of India’s aviation sector.
Airbus’ Order Backlog And Presence In India
The company has a significant backlog of over 1,300 aircraft destined for Indian airlines, with IndiGo alone accounting for more than 900 of these orders, including the wide-body A350s. Additionally, Air India has placed firm orders for 50 A350s, while IndiGo has secured 30 of the same model. Currently, approximately 700 Airbus aircraft are operational within India.
India’s integration into the global aerospace sector is evident as Airbus continues to expand its sourcing across various categories, including parts, sub-system manufacturing, airframes, and highly-loaded components. “We are growing the supply base, we are procuring $1.2 to $1.3 billion worth of components and services from India today, and we will be at around $2 billion before 2030,” Faury stated during an interaction with Indian journalists at the Airbus Summit 2025 in Toulouse.
With over 3,600 employees across its Indian sites and more than 15,000 jobs supported through its supply chain, Airbus has built a strong presence in the country.
Faury noted that India’s competitive edge lies in its ability to re-engineer and optimise sophisticated aerospace systems. “That is what we are doing with Dynamatic, Tatas, and Mahindra,” he added.
Last year, Bengaluru-based Dynamatic Technologies was awarded the contract to manufacture and assemble doors for Airbus’ A220 Family aircraft. The company is also involved in other ventures, such as a Final Assembly Line (FAL) for C295 military transport aircraft in partnership with Tata and plans for an H125 helicopter assembly facility in India.
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Airbus’ Plans For Manufacturing Civilian Aircraft In India
When asked about the possibility of setting up a Final Assembly Line for civilian aircraft in India, Faury suggested that such a facility might be considered for the next generation of aircraft. “For the current generation of aeroplanes, I don’t think it makes sense for Airbus or for India. India should play on its strengths and not try to replicate what others have been doing in the past,” he stated. Instead, he stressed that India’s strengths in engineering, IT, systems, and software offer mutual benefits for both Airbus and the country.
The rapid expansion of India’s aviation infrastructure is another critical factor. “It is amazing to see the number of new airports coming up,” Faury observed, adding that India is witnessing the fastest aviation growth in the world. “Our challenge at Airbus is to support the speed of growth of the aviation industry in India. The growth trajectory of India is significantly ahead of that of the world,” he said.
Addressing concerns about supply chain constraints leading to longer aircraft delivery times, Faury noted that the situation is improving.
