India’s Jet-Set Future: Airbus Calls It the "Next Big Hub"

India is fast becoming a cornerstone of Airbus’ global strategy, with the country emerging as a key aviation hub. As Airbus ramps up production and deepens its sourcing partnerships, the Indian aviation sector is poised for significant transformation.

India’s growing role in Airbus’ global operations

IndiGo and Air India now rank among Airbus’ top three airline customers globally in terms of aircraft yet to be delivered. IndiGo has 916 aircraft on order, while Air India awaits 344.

Airbus is back to producing 60 A320 family aircraft per month, its pre-pandemic rate, with plans to increase this to 75 by 2027.

Every Airbus commercial aircraft moving forward will include components made in India, reinforcing the country’s role in the global supply chain.

Strategic investments and sourcing expansion

Airbus has ramped up sourcing from India, increasing from USD 500 million in 2020 to USD 1.4 billion in 2023, with a USD 2 billion target set for this decade.

The company is focusing on deepening sourcing partnerships rather than setting up a final assembly line for commercial aircraft in India.

Two final assembly lines are already planned for helicopters and military aircraft, strengthening India’s aerospace manufacturing capabilities.

Market outlook and future prospects

India’s aviation sector is growing at approximately 7 percent annually, making it one of the fastest-expanding markets globally.

Airbus executives see India not just as a market but as a strategic industrial base, signaling a long-term shift in aviation manufacturing.

The country’s strengthened role in Airbus’ global supply chain is expected to drive further investments and technological advancements.

As India cements its position in the aviation industry, Airbus’ commitment to the region underscores the country’s potential as a global aerospace powerhouse.

Sources: TravelBiz Monitor, Times of India.