Airbus calls for PLI scheme extension to aerospace industry

Post by : Meena Rani

Aerospace major Airbus India has called on the Government of India to extend the Production Linked Incentive (PLI) scheme to the aerospace manufacturing sector, citing its potential to accelerate the country’s transformation into a global hub for aviation component production.

Speaking at the Aviation India and South Asia 2025 Summit, Jürgen Westermeier, President and Managing Director of Airbus India & South Asia, emphasized that aerospace manufacturing requires long-term capital commitment and consistent policy support.

“India needs to have a lot of investment to get things going,” Westermeier said. “We have in India this production-linked incentive. Why not extend this one to the aerospace industry? This is a growing industry.”

Airbus’s expanding footprint in India

Currently, Airbus sources around $1.5 billion (₹15,000 crore) worth of components and services from India every year, reflecting the country’s increasing role in global aerospace supply chains.

Last month, Airbus’s global board visited India to tour manufacturing sites and inaugurate new training institutes established with its support. Westermeier highlighted the company’s commitment to re-engineering parts and improving component efficiency, calling India “an exciting place to be” for aerospace innovation.

“We are making complex parts in India and also supporting maintenance and engineering capabilities,” he said, adding that Airbus aims to further develop India’s aerospace ecosystem.

Growing engineering workforce

Airbus is also expanding its engineering presence, hiring up to 20% more engineers each year. This aligns with India’s growing reputation as a skilled engineering and design center for global aviation firms.

Reflecting on challenges faced during the COVID-19 pandemic, Westermeier noted that India’s resilient supply chain was critical to Airbus’s ability to ramp up aircraft production post-pandemic.

“Without the essential supply chain support from India, the ramp-up would not have been possible,” he remarked.

Final assembly projects in progress

While Westermeier ruled out immediate plans for a commercial aircraft final assembly line (FAL) in India, he confirmed that Airbus already has adequate global production capacity.

However, he pointed to major ongoing assembly projects within India:

• The C295 military transport aircraft, being produced in partnership with the Tata Group.

• The upcoming H125 helicopter final assembly line, which Airbus plans to inaugurate in March next year.

“This final assembly line is a testament to what we believe India is capable of as a market,” Westermeier added.

India’s aviation growth trajectory

Airbus currently has over 1,200 passenger jets on order from Indian carriers, underscoring the country’s rapidly expanding aviation market. The company sees India not only as a key customer base but also as a strategic partner in global manufacturing and engineering.

Extending the PLI scheme to aerospace, industry experts believe, could unlock large-scale investments, drive technology transfer, and help India emerge as a competitive aerospace manufacturing hub.

Airbus India, PLI scheme, aerospace manufacturing, aviation industry