India's Ambition Of Becoming Global Hub In Aircraft Manufacturing Needs Minimum 20 Years: Experts Overcoming key technology transfer challenges, extending tax holidays, availability of sufficient talent, creating a strong ancillary industry base and a single window systems for permissions, would spur growth

Better late than never. India's aviation history in manufacturing dates back to the 1940s: Hindustan Aeronautics Limited (HAL) began manufacturing aircraft in 1942 for Indian Air Force (IAF). However, keeping up was a difficult task. Aircraft manufacturing is an exorbitantly capital-intensive industry with long gestation periods. Recently, civil aviation minister KR Naidu indicated in a conference that India would soon enter into aircraft manufacturing: We would make the nation a global hub for aircraft manufacturing, Naidu said.

"India was one of the earliest starters with HAL (defence aircraft) in 1929, which the British and the Americans used to build warplanes. However, Indian aviation development did not keep pace. We also have a few private players, and now the Tatas are getting into the game partnering with the big boys," said Sanjay Lazar, an aviation expert and CEO Avialaz Consultants.

In order to design, manufacture and export its own aircraft, India has a long journey to take. The country has miles to go before it manufactures civilian aircraft to compete with Boeing and Airbus. "Compare India to China, the Chinese germinated this idea in 1983 and 40 years later, COMAC competes with Boeing and Airbus. Look at Brazil, an idea that began in 1969, is today the world's third largest civilian aircraft manufacturer. In the 1980s, it produced the EMB 120 Brasilia, and today Indian airlines are using the Embraer regional jets. In more than 100 years of civil aviation, we still only have two or three main airplane producers, and four engine makers on the entire planet. It tells you how tough the going is," Lazar added.

The Brazilian government founded Empresa Brasileira de Aeronautica SA (Embraer) on August 19, 1969 to mass produce aircraft. The first aircraft Embraer produced was the Bandeirante turboprop, which took flight in 1969. The first Airbus aircraft, the A300, was conceived in the late 1960s and entered service in 1974. Coming to India, the light combat aircraft (LCA) program, which would eventually become the Tejas, was conceived in the early 1980s. An indigenous aircraft manufacturing is more than 25 year project, provided the geo-political situation does not impose sanctions on supply of critical parts like engines and avionics.

Steps India needs to take

Aircraft manufacturing is a very complex process requiring thousands of parts sourced from various manufacturers over the world. The basic design, the prototype and finally the flyable version may take anywhere from 10 -15 years and another 3-4 years for its international certification. "India should first get into the business of assembling aircraft from other manufacturers, gain capability and side by side work on the designing of a new aircraft. Further we are still looking for an engine supplier, avionics supplier and other critical components which are not made in India," said Arun Lohiya, chief operating officer - CAD Ventures Pvt. Ltd. - a Cadila group company.

In terms of assembling, India is already inking pacts. Marking a milestone in the 'Make in India' programme, the Airbus Defence and Space Quality Management System (QMS) for the C295 transport aircraft has received approval from the Directorate General of Aeronautical Quality Assurance (DGAQA), the Indian regulatory authority, to produce detailed parts and sub-assemblies in India. India formalized the acquisition of 56 Airbus C295 aircraft to replace the IAF legacy AVRO fleet, in September 2021. Under the contractual agreement, Airbus will deliver the first 16 aircraft in 'fly-away' condition from its final assembly line in Seville, Spain. The remaining 40 aircraft will be manufactured and assembled by Tata Advanced Systems Limited (TASL) in India as part of an industrial partnership between the two companies. As part of this, the first aircraft manufactured in India would be delivered in September 2026.

There is a huge potential for small civil transport aircraft market in India. HAL introduced a 19-seater aircraft in a first major attempt to develop small civil transport aircraft. Similarly, HAL/NAL Regional Transport Aircraft (RTA) is a regional airliner being designed by India's National Aerospace Laboratories (NAL), and to be manufactured by HAL. The 90 seater variant is expected to enter service in 2026.

While our aircraft manufacturing capabilities are at its infancy, India has made huge strides in the past few years. Defense platform modernisation programs involving foreign acquisitions, now have a very high component of technology transfer. "We are also seeing large Indian software providers scaling up the value chain in developing competencies in engineering design and technical support areas; the existing large aircraft original equipment manufacturers (OEMs) are also setting up captive technology development centers in India, capitalizing on the strong engineering talent pool that we have. The way forward will be to capitalize on the huge domestic market potential for aircraft both for commercial transport as well as on defense," said Sam Jacob, SVP & SBU head, Aviation Software, Ramco Systems.

In January this year, Prime Minister Narendra Modi inaugurated Boeing India Engineering and Technology Center (BIETC), built with an investment of INR 1,600 crore, spread across a 43-acre campus in Bengaluru.

Expectations from government

India needs ease of doing business, "The government support will undoubtedly play significant role but as we have seen in the past, government support to private enterprises always have political angles and opposition, thus till date the government, however supporting the made in India campaign has been, still restrained itself from very high cost intensive industries like aviation and Space and have invested heavily in public sector undertakings like HAL and ISRO," Lohiya explained.

An airline production unit is only as good as the ancillary industries, "Whilst Boeing and Airbus have OEM feeders globally and can afford it, new Indian aviation companies won't be able to, and hence need a competitive advantage. Creating single window systems for permissions would expedite the process – the aviation ministry has nothing to do with an Industrial unit, until that aircraft is certified to fly. So let it be either the heavy industry ministry or the finance ministry to clear every aspect," explained Lazar.

The government must bring in production incentives in the form of tax holidays, so that ancillary OEM manufacturers come and set up plants in India. "Woo the OEMs and collaborators with cheap land, electricity holidays, and 15 year tax holidays. That is the only way the biggest and the brightest will move to india. Identify three or four strategic zones where these may be set up. We already see Gujarat and Karnataka have some major setups," Lazar added.

Availability of sufficient talent, overcoming key technology transfer challenges due to governmental controls and geo-political pressures and consistent sustained governmental support through favorable policies to spur growth, would be crucial. Moreover, lack of OEM suppliers based in India, lack of big Indian businesses willing to invest, too much red tape – too many permissions and windows, are some of the biggest challenges.

"Strong incentives to drive localization of design, engineering and manufacturing to support this demand by current OEMs, would amplify growth. Indian companies with strong engineering capabilities should develop partnerships with OEMs – this can significantly shorten the life cycle to build a mature arcraft manufacturing base," said Sam Jacob.

Currently, India has manufacturing capacities in defense aircraft, helicopters and work is in progress for transport aircraft. Furthermore, few Indian companies are making defense equipment for aircraft, including avionics, missiles, radars, and aircraft sensors.

However, manufacturing civilian aircraft with the ambitious goal of becoming a global hub for plane productions and exports, would require a minimum of 20 years. "With the current pace, we will take a minimum of 20 years to see civilian aircraft flying out of India, We have seen under this government, our airport growth has picked up rapidly in the last 8 years and is at full speed, maybe we should work on the aircraft plan simultaneously," Lazar said.

"Not less than 20 years, if we start today," quipped Lohiya, giving an understanding of the timeline by which India can achieve its aspiration of being a global hub in aircraft manufacturing.