Aerospace industry the fastest growing in the world: Report

Minister of State for Defence Mr M M Pallam Raju, released a report titled " Changing Dynamics – India's Aerospace Industry" on the second day of  "Aero India 2009" organised by Defence Exhibition Organisation of Ministry of Defence in association with Confederation of Indian Industry (CII).

This is the first such report on the industry. It gives a snapshot of the current scenario, opportunities, challenges and the direction for the future. The report was prepared with the joint efforts of CII and PriceWaterhouseCoopers. Lack of any credible benchmarks and authenticated figures on the Aerospace Industry in India are the main drivers for CII to initiate and bring out the report. The report documents the capabilities of Aerospace manufacturing and Maintenance Repair Overhaul (MRO) industry. 

The report clearly states that the process of transformation has begun and Indian Aerospace industry players can look forward to take advantage of the new opportunities emerging from global scenario. 

Releasing the report Mr M M Pallam Raju said, though Aero India in Bangalore and Def Expo in Delhi showcase the capabilities and provide leads to emerging opportunities, there has been no comprehensive data till now which can be used by an entrepreneur to make their investment plans in the sector. "This report has not only filled that gap but also has given the directions to approach the market," he said. 

Indian Aerospace Industry consists of Civil and Defence segments. The former is driven by general industrial growth and the increase in air travelers whereas the latter is driven by threats around the country and the need to modernize the armed forces. 

Though currently the Indian Aerospace Industry is primarily driven by Government and PSUs, there are opportunities in public as well as private sectors in the entire life cycle from designing to building. Indian Aerospace Industry is one of the fastest growing aerospace markets in the world and has been attracting major global aerospace companies across the globe.  OEMs are moving from vertically integrated manufacturing to design and systems integration.

"Indian aerospace is one of the fastest-growing aerospace markets in the world driven by continued economic growth resulting in growing passenger traffic and domestic aircraft demand.  India is poised to become a manufacturing destination. The key drivers include liberal investment policies in civil aviation and defence, a proactive defence offset policy, a strong manufacturing base, cost advantages, a well educated talent pool, global competitiveness in IT and an attractive special economic zones law. It also has the potential to become a MRO destination due to labour cost competitiveness, availability of specialist capabilities and its locational advantages," says the report.