India emerges as key player in global aerospace supply chain

The aerospace and defense industry is facing significant structural shifts driven by massive order backlogs and changing global supply chain dynamics. Airbus and Boeing currently hold a combined backlog of approximately 15,000 aircraft, representing an estimated 16 to 18 years of work at current delivery rates.

India is emerging as a potential growth hub for the sector due to several converging trends. These include a large pool of trained engineers, improving government policies, and lower machining costs, which are typically 30% to 50% cheaper than in China. Additionally, Western manufacturers are seeking new partners to mitigate labor shortages and rising costs caused by an aging workforce in Western nations.

To manage these complexities, companies are increasingly utilizing project portfolio management (PPM) and specialized software. These tools aim to centralize data, optimize resource capacity, and manage the high-budget, distributed nature of aerospace R&D and production projects.