Airbus Expands 'Make in India' Commitment
Airbus has significantly reinforced its commitment to the 'Make in India' initiative by awarding additional manufacturing contracts to Tata Advanced Systems Limited (TASL) and Mahindra Aerospace Structures Private Limited (MASPL). This strategic move, announced in January 2024, is a testament to Airbus's confidence in India's growing capabilities in the aerospace sector.
Under these contracts, TASL and Mahindra Aerostructures will manufacture metallic detail parts, components, and assemblies for various Airbus aircraft, including the A320neo, A330neo, and A350 programs. This development marks a further deepening of Airbus's relationship with Indian aerospace firms, as both TASL and Mahindra Aerospace are already among the more than 100 India-based suppliers that contribute to Airbus's global operations.
Rémi Maillard, President and Managing Director of Airbus India and South Asia, highlighted that these agreements go beyond merely supporting the growth of the Indian commercial fleet. The goal is to develop and strengthen the complete aerospace ecosystem in India, enhancing manufacturing and engineering capabilities of local partners. These contracts are part of Airbus's strategy to make India a strategic resource hub, not only as a market but also for human capital, aerospace components, and services.
India's role in Airbus's global operations is substantial. Every Airbus commercial aircraft incorporates components and technologies made in India, including the A220 Escape Hatch Door and Flap Track Beams for the A320neo and A330neo aircraft. The company's procurement from Indian suppliers currently stands at about US$750 million annually. These new contracts are expected to significantly increase this figure, reflecting the growing importance of India in the global aerospace supply chain.
Moreover, the initiative is set to boost employment in the region. Airbus's Indian supply chain currently supports around 10,000 jobs, with projections indicating a rise to approximately 15,000 by 2025. This growth in employment is aligned with Airbus's commitment to fostering economic development and enhancing India's capabilities in various aerospace technologies, including sheet metal, machining, and extrusion profiles.
These partnerships are not only a boost for India's aerospace industry but also solidify the country's position as a key player in the global aerospace market. The collaboration aligns with the 'AatmaNirbhar Bharat' vision of India, focusing on self-reliance and indigenous manufacturing. Airbus's continued investment and collaboration with Indian suppliers underscore the company's belief in India's potential as a significant contributor to the global aerospace supply chain.
