Key Takeaways
- • Dr S. Dwarakanath, Director General of the Aerospace India Association (AIA), said private capital is now widely available to Indian aerospace manufacturers, unlike during the first wave of private-sector aerospace manufacturing around 2004-08, when companies struggled to scale.
- • The Indian aerospace manufacturing industry is expected to grow from about $2 billion currently to $20 billion over the next decade, according to AIA.
- • The industry aims to raise India's share of the global aerospace supply chain from 1-2 per cent to 10 per cent.
- • Global aircraft makers including Airbus and Boeing are looking to expand their supplier base in India to address production and supply-chain constraints.
- • AeroConnect 2026, the inaugural AIA conference, will be held on 19 November 2026 in Bengaluru with over 300 delegates.
Summary
Private equity is emerging as an important source of capital for Indian aerospace suppliers seeking to expand capacity and move into higher-value work, according to a BusinessLine report published on November 15, 2026. The funding comes as global aircraft manufacturers, including Airbus and Boeing, seek to diversify their supply chains by expanding their supplier base in countries such as India to address production and supply-chain constraints.
Speaking to BusinessLine, Dr S. Dwarakanath, Director General of the Aerospace India Association (AIA), said access to private capital is the key difference between the current growth cycle and the first wave of private-sector aerospace manufacturing in India around 2004-08. At that time, companies struggled to expand and scale due to limited funding options. He said that capital is now much more available.
Dwarakanath said the Indian aerospace manufacturing industry is expected to grow from about $2 billion currently to $20 billion over the next decade. The industry also wants Indian companies to raise their share of the global aerospace supply chain from the current 1-2 per cent to 10 per cent. To achieve this, the sector is moving beyond build-to-print manufacturing toward design-and-build capabilities and proprietary products such as motors, actuators and smaller aircraft subsystems. Higher domestic value addition and intellectual property creation are also seen as important to capture a larger share of the opportunity.
The article notes that other deep-tech sectors have gained momentum through clearer policy frameworks. Defence technology has benefited from the Defence Acquisition Procedure and Innovations for Defence Excellence (iDEX), while the opening of the space sector has been accompanied by the creation of IN-SPACe and liberalised foreign direct investment norms. Dwarakanath said industry, academia and government will need to work together to build globally competitive aerospace capabilities.
The remarks came ahead of AeroConnect 2026, the inaugural conference of the AIA, to be held on 19 November 2026 in Bengaluru. The event, themed "Nurturing the aerospace ecosystem," will bring together over 300 delegates and feature discussions on aviation, supply-chain competitiveness, emerging design and manufacturing technologies, and investment opportunities. Speakers include Dr Kota Harinarayana, former Head of the LCA Tejas Program, and Thomas Kopinitz, MD of Hermle WWE AG.
Speaking to BusinessLine, Dr S. Dwarakanath, Director General of the Aerospace India Association (AIA), said access to private capital is the key difference between the current growth cycle and the first wave of private-sector aerospace manufacturing in India around 2004-08. At that time, companies struggled to expand and scale due to limited funding options. He said that capital is now much more available.
Dwarakanath said the Indian aerospace manufacturing industry is expected to grow from about $2 billion currently to $20 billion over the next decade. The industry also wants Indian companies to raise their share of the global aerospace supply chain from the current 1-2 per cent to 10 per cent. To achieve this, the sector is moving beyond build-to-print manufacturing toward design-and-build capabilities and proprietary products such as motors, actuators and smaller aircraft subsystems. Higher domestic value addition and intellectual property creation are also seen as important to capture a larger share of the opportunity.
The article notes that other deep-tech sectors have gained momentum through clearer policy frameworks. Defence technology has benefited from the Defence Acquisition Procedure and Innovations for Defence Excellence (iDEX), while the opening of the space sector has been accompanied by the creation of IN-SPACe and liberalised foreign direct investment norms. Dwarakanath said industry, academia and government will need to work together to build globally competitive aerospace capabilities.
The remarks came ahead of AeroConnect 2026, the inaugural conference of the AIA, to be held on 19 November 2026 in Bengaluru. The event, themed "Nurturing the aerospace ecosystem," will bring together over 300 delegates and feature discussions on aviation, supply-chain competitiveness, emerging design and manufacturing technologies, and investment opportunities. Speakers include Dr Kota Harinarayana, former Head of the LCA Tejas Program, and Thomas Kopinitz, MD of Hermle WWE AG.
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