Global aerospace manufacturers are urging the Indian government to introduce a dedicated PLI scheme for aircraft components, a move they say could rapidly expand India’s position in the global aviation supply chain. Industry representatives believe such an incentive structure would align with the country’s long-term manufacturing strategy, especially as global companies diversify supply chains beyond traditional hubs.
According to several market analyses and industry statements published this week, companies including aircraft makers, engine manufacturers and avionics suppliers have expressed interest in partnering more deeply with Indian producers. Their central argument: with financial incentives and policy stability, India could emerge as a competitive manufacturing centre for aircraft structures, cabin systems, avionics, composite materials and engine parts.
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Why a PLI Scheme Matters for India’s Aviation Sector
India’s aviation sector has recorded steady growth over the past decade, driven by expanding passenger traffic, new airports under development and increased aircraft procurement by domestic carriers. However, despite this growth, India’s manufacturing share in the global aerospace supply chain remains limited.
A PLI scheme for aircraft components could address this gap by:
1. Supporting Capital-Intensive Manufacturing
High-precision aerospace production requires advanced machinery, clean-room facilities and skilled engineering expertise. A PLI scheme could help offset the significant capital expenditure for new entrants.
2. Attracting Global Supply Chains
The global aviation industry is actively diversifying supply chains to reduce geopolitical and logistical risks. India is well-positioned to attract long-term investments through predictable policy support.
3. Boosting High-Technology Exports
A dedicated PLI scheme could help India scale up exports of certified aircraft parts to markets in Europe, the U.S. and Southeast Asia — a major step towards integrating into global aerospace value chains.
PLI Scheme for Aircraft Components Gains Industry Backing
Industry groups emphasise that a PLI scheme for aircraft components would not only accelerate domestic capabilities but also align with broader government objectives under Make in India and Atmanirbhar Bharat.
Currently, India has PLI schemes for sectors such as electronics, telecom, solar modules, drones and automobiles. Experts argue that aviation is the next logical addition, given the country’s ambitions to become a global manufacturing hub.
Executives cited several benefits:
- Stable multi-year demand visibility
- Faster certification and compliance workflows
- Increased R&D and testing facilities
- Higher employment opportunities for aerospace engineers and technicians
Several global firms have also expressed confidence in India’s ability to scale up, referencing successful collaborations with Indian suppliers in defence and space manufacturing.
Challenges India Must Address
Despite optimism, analysts note that India must resolve several industry bottlenecks:
1. Skilled Workforce Gap
Aerospace manufacturing requires tight tolerances and specialised skills. Experts state that India will need large-scale training programmes to meet global standards.
2. Certification & Quality Assurance
Achieving FAA, EASA and global aerospace certification benchmarks remains time-consuming for new facilities. Streamlined approval pathways would be essential.
3. Supply Chain Infrastructure
High-precision aerospace production depends on reliable logistics, the availability of speciality materials, and robust quality control systems — areas where India continues to improve.
What Happens Next?
Government officials are reportedly reviewing proposals for sector-specific PLI expansions. While no official confirmation has been issued, policymakers have acknowledged the strategic significance of the aviation and aerospace sector.
If India adopts a PLI scheme for aircraft components, it could:
- Accelerate export growth
- Bring advanced manufacturing jobs
- Deepen India’s integration with global aviation giants
- Reduce reliance on imported aircraft parts
Industry analysts expect more consultations between manufacturers and policymakers in the coming months.
