Indian Aerospace sector Industry Analysis Report | Scrolls

by KarNivesh | 05 October, 2025

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The Indian aerospace industry is on an exciting journey of growth and transformation. With strong government support, rapid technological advancement, and increasing global demand, India’s aerospace sector has become one of the most dynamic industries in the world today.

Indian Aerospace Market Growth Trajectory (2020-2033) showing steady expansion with projected market size reaching $54.4 billion by 2033

In 2024, the market size of the Indian aerospace sector stood at ₹2.26 lakh crore and is projected to nearly double to ₹4.54 lakh crore by 2033. This steady growth at a rate of 6.8% per year shows how quickly India is building its presence in global aviation and defense markets. Government programs like “Make in India” and large defense budgets have played a vital role in pushing this growth forward. India is already the fourth-largest defense spender in the world and is on its way to becoming the third-largest aviation market.

The Indian aerospace ecosystem covers a wide range of areas — from defense and civil aviation to space technology, manufacturing, and MRO (Maintenance, Repair, and Overhaul) services. Major players such as Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL) lead the industry with decades of experience and strong manufacturing capabilities. Alongside them, private companies like Tata Advanced Systems and Mahindra Aerospace are contributing actively through innovation and partnerships with global giants like Boeing and Airbus.

South India has emerged as the country’s aerospace hub, hosting key facilities in Bengaluru, Chennai, and Hyderabad. The region’s well-developed infrastructure and talent base make it the center of aircraft manufacturing, R&D, and testing. Meanwhile, North and West India are also catching up fast, especially with new defense corridors and investments.

Technology is at the heart of this transformation. Artificial intelligence, 3D printing, and digital twin technologies are reshaping design, production, and maintenance. The use of predictive maintenance, IoT systems, and smart manufacturing is increasing rapidly, making India a modern, tech-driven aerospace player. These advancements also help the industry become greener, with efforts focusing on electric propulsion, sustainable fuels, and eco-friendly production.

The government has also opened doors for more foreign investment, allowing up to 100% FDI in satellite component manufacturing. This has attracted global leaders and created new opportunities for local startups and MSMEs. The Production Linked Incentive (PLI) schemes, defense production policies, and infrastructure development have all made India a preferred investment destination.

Market Share Distribution of Key Players in Indian Aerospace Industry (2024) with HAL and BEL dominating over 70% of the market

Employment in the sector is also booming, with over 7 lakh people currently employed and projections to reach more than 11 lakh by 2030. Engineers, technicians, and digital specialists are in high demand, showing how aerospace contributes not just to national growth but also to skill development and job creation.

Overall, the Indian aerospace industry is not just flying—it’s soaring. With strong policies, innovation, and a skilled workforce, India is on track to become a global aerospace powerhouse. The future looks bright, sustainable, and full of possibilities as the nation continues its journey from “Make in India” to “Innovate in India.”