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Aerospace exports take off, Gulf states now top buyers

From aircraft to spacecraft components, India's aerospace sector has rebounded sharply, with Gulf nations emerging as top buyers

2 min read
Updated On: Oct 08 2025 | 2:22 PM IST
Bhaswar Kumar
Representational image

Representational image

India’s aerospace exports — comprising aircraft, spacecraft, and related parts — have tripled between 2017–18 (FY18) and FY25, markedly outpacing overall exports growth in FY23, FY24, and FY25, and recovering from the sharp decline witnessed between FY19 and FY22 to reach $6.96 billion in the last financial year. Having regained its share in overall exports at 0.74 per cent in FY24 — a level last seen in FY18 — the sector more than doubled its contribution to 1.6 per cent in FY25. 
The composition and destination of India’s aerospace exports also shifted between FY18 and FY25. During this period, exports related to heavy aircraft (weighing over 15,000 kg) expanded their share of the total from 8.65 per cent to 79.61 per cent. While Western countries — led by the United States (US) — dominated the list of top five export destinations in the first six years, FY24 and FY25 saw Gulf nations such as Kuwait, Saudi Arabia, and the United Arab Emirates (UAE) enter that cohort. Notably, Kuwait and the UAE displaced the US as the leading export destination in FY24 and FY25.    
The sector’s momentum is reflected in the sourcing plans of Airbus and Boeing — the European and American aerospace giants that hold a duopoly in the global passenger aircraft market. Airbus already sources over $1 billion worth of components from India and works with more than 100 suppliers in the country.  
Jürgen Westermeier, its Managing Director for India and South Asia, informed Union Minister for Electronics and Information Technology Ashwini Vaishnaw during a meeting in September. It was also announced that Airbus plans to establish a R&D centre in Vadodara, Gujarat. At Aero India 2025 in February, Boeing told Business Standard that it expects its sourcing from India — currently over $1.25 billion annually, with more than 70 per cent from manufacturing — to continue growing.
 

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Written By :

Bhaswar Kumar

Bhaswar Kumar has over seven years of experience in journalism. He has written on India Inc, corporate governance, government policy, and economic data. Currently, he covers defence, security and geopolitics, focusing on defence procurement policies, defence and aerospace majors, and developments in India’s neighbourhood.
First Published: Oct 08 2025 | 2:22 PM IST

In this article : aerospaceAerospace and Defence policy

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