The Indian aerospace industry needs to embrace digitization to scale up operations and establish India as a global manufacturing hub, according to Tata Advanced Systems (TAS) Chairman Banmali Agarwala.

Agarwala made these remarks while participating in a panel discussion on strategies and challenges for positioning India as a global aerospace and defense manufacturing hub, organized by the Indian Foundation for Quality Management (IFQM). He emphasized the importance of Indian firms developing the capacity to absorb and build upon imported technologies, rather than perpetually relying on external sources.

The Imperative of Digitization

Agarwala highlighted the surprising lack of digitization within the aerospace industry, noting that many companies still rely on outdated, non-digitized drawings. He stressed that digitizing these processes is crucial for scaling up production. Digitization can also improve supply chain efficiency, which is essential for large-scale manufacturing.

Scaling Up: From Prototypes to Production

Agarwala underscored the need to move beyond prototype development and focus on mass production. He used the example of the Tejas fighter jet, stating that simply producing a few units is insufficient. To become a true manufacturing hub, India must develop the capacity for large-scale production.

Technology Absorption: Building Indigenous Capabilities

Agarwala acknowledged that technology is often acquired from global sources. However, he stressed the importance of developing the ability to absorb and improve upon these technologies, rather than remaining dependent on external sources.

India's Rise in Aerospace Manufacturing

India is emerging as a key player in the global aerospace manufacturing industry. Several factors contribute to this rise, including cost-effectiveness, a skilled workforce, and a growing number of aeronautics firms scaling up production. International giants like Airbus, Rolls-Royce, and Collins Aerospace are increasingly sourcing components from Indian firms. Airbus, for example, plans to procure $2 billion worth of components and services from India annually by 2030.

India's aerospace parts manufacturing market was valued at $13.6 billion in 2023 and is projected to grow at a CAGR of 6.8% from 2024 to 2030. This growth is driven not only by exports but also by the expanding domestic civil aviation sector, which increases the demand for maintenance, repair, and overhaul (MRO) services and locally manufactured parts.

Challenges and Opportunities

Despite its potential, India's aerospace industry faces challenges such as talent shortages and supply chain issues. However, these challenges also present opportunities for Indian companies to innovate and develop solutions. By embracing digitization, fostering technology absorption, and scaling up production, India can overcome these challenges and establish itself as a global aerospace manufacturing hub.