India Targets First Made-in-India Civil Aircraft Within 2 Years

India is targeting the development of its first indigenous civilian aircraft within the next two years through a joint venture, Civil Aviation Minister K Rammohan Naidu said at an Indian Foundation for Quality Management symposium in Delhi. 

As per news reports, the minister did not provide details of the proposed joint venture. He said this would take India's aircraft manufacturing efforts beyond components and military aircraft towards civilian aviation. 

Aircraft Orders 

The plan comes as India's airline fleet and airport network continue to expand. Domestic airlines currently operate around 850 aircraft, while carriers have more than 1,600 aircraft on order. 

The aircraft orders are estimated to be worth around $100 billion. India currently has 165 airports, with more than 100 additional airports expected to come up over the next 10 years. 

Manufacturing Capacity 

Naidu said the government would focus on the quality of materials and the availability of skilled workers required for high-end aviation manufacturing. He said policy support would need to be accompanied by improvements in these areas. 

The government is also considering domestic production of jet engines, although Naidu said developing the capability would be a time-consuming process. No timeline was given for engine manufacturing. 

Existing Aerospace Supply Chain 

India already supplies aircraft components and services to major global manufacturers. Boeing and Airbus currently source around $4 billion worth of components and services from India. 

The value of this sourcing is expected to increase to $10 billion by the end of the decade. Naidu also said both manufacturers are supporting Indian MSMEs, citing the growing role of the country in the aerospace supply chain. 

ATF Prices 

The announcement comes as airlines deal with higher Aviation Turbine Fuel (ATF) prices linked to the West Asia crisis. Naidu said the ministry is holding discussions with airlines and oil marketing companies over the increase. 

IndiGo has raised its fuel surcharge following a month-on-month ATF price increase of more than 14%. The airline said fuel costs had reached levels among the highest in the last decade. 

Read More: Maharashtra Government Signs 67 MoUs Worth ₹8.57 Lakh Crore With 65 Companies! 

Conclusion 

The proposed joint venture sets a two-year target for civilian aircraft production in India. The government is also looking at materials, skilled manpower and longer-term engine manufacturing as part of the sector's development. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.