Airbus SE has announced plans to significantly expand its annual procurement from India, aiming to reach $2 billion by the end of the decade. This represents a nearly 43% increase from current levels and underscores India’s rising role in the global aerospace supply chain.
Speaking to reporters in New Delhi, Remi Maillard, President and Managing Director of Airbus India and South Asia, said the company is on track to reach the $2 billion target “well before 2030.” The move aligns with Airbus’s broader strategy to deepen its engagement with India’s growing aviation ecosystem.
In 2024, Airbus sourced $1.4 billion worth of components and services from India, marking a 40% rise compared to the previous year. This figure has grown sharply from $500 million in 2019, reflecting the steady expansion of India’s aerospace capabilities.
India’s domestic aviation sector is now the third largest in the world, making it a key market for aircraft manufacturers. Airbus had previously projected that India would require over 2,200 new aircraft within the next two decades. Indian airlines currently hold one of the world’s largest order backlogs, with close to 1,800 aircraft on order from both Airbus and Boeing.
Despite the complex regulatory and procedural landscape, Airbus has managed to significantly ramp up sourcing from India. Maillard emphasized that the pace of growth has been remarkable given the approvals and processes involved.
Airbus is a major supplier to IndiGo and Air India, two of India’s largest airline operators. The company’s decision to increase procurement volumes highlights its confidence in India’s industrial base and its potential as a long-term partner.
During the same event, Maillard also announced a new collaboration with Mahindra Aerostructures. Under the partnership, Mahindra will produce fuselage components for Airbus’s H130 single-engine helicopters.
Mahindra Aerostructures confirmed that production for the H130 will begin with initial deliveries scheduled for March 2027. The agreement further strengthens Airbus’s manufacturing footprint in India and supports the development of the local aerospace sector.
