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India and Airbus solidify billion dollar partnership as orders for 100s of new aircrafts help the the Airline maufacturer zoom ahead of its rivals

Jyotirmay Kaushal by Jyotirmay Kaushal
September 17, 2025
in Geopolitics
India and Airbus solidify billion dollar partnership as orders for 100s of new aircrafts help the the Airline maufacturer zoom ahead of its rivals
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In a visit that reaffirmed the growing momentum of Indo-European industrial collaboration, Ambassador Ajit V. Gupte, India’s envoy to Germany, toured the Airbus assembly facility in Hamburg, one of the aerospace giant’s key production hubs. The visit marks a significant milestone in the long-standing partnership between India and Airbus, which has now flourished for over 60 years.

The visit underscores the strategic and economic depth of this relationship—one that has evolved from aircraft procurement to multifaceted cooperation involving technology transfer, manufacturing, engineering, and innovation. With India rapidly emerging as a global aviation hub and Airbus reinforcing its leadership in the Indian market, this partnership has never been more vital.

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A Landmark Partnership: From Buyers to Strategic Partners

The India–Airbus relationship dates back to the early days of Indian aviation. Over the past six decades, it has grown far beyond aircraft sales. Today, Indian engineers, IT professionals, manufacturers, and suppliers are deeply embedded in Airbus’ global value chain, contributing to the design, development, and production of some of the world’s most advanced commercial aircraft.

Ambassador Gupte’s visit comes at a pivotal time when India’s aviation sector is undergoing rapid transformation. The country is witnessing an unprecedented rise in air travel demand, infrastructural development, and private sector investment. Airbus, recognizing this growth potential, has significantly expanded its footprint in India.

“This partnership reflects a shared commitment to innovation, sustainability, and industrial cooperation. Airbus has been a key partner in India’s aviation growth story and continues to invest in our capabilities, people, and potential,” said Ambassador Gupte during his visit.

Airbus Solidifies Leadership in Indian Skies

Airbus has firmly positioned itself as the leading aircraft supplier to Indian carriers, with recent orders reflecting the scale and ambition of its engagements:

In 2023, Air India, under the Tata Group, placed a historic order of 250 Airbus aircraft, including the A320neo family and the A350 widebody jets. The deal marked a turning point in the modernization of India’s national carrier and signaled renewed confidence in Airbus as a long-term strategic partner.

These orders, collectively valued at tens of billions of dollars, highlight India’s expanding role in global aviation and Airbus’ trusted status as the preferred OEM for Indian carriers.

India as a Strategic Industrial and Innovation Partner

While headline-making aircraft orders grab attention, the depth of Airbus’ engagement with India goes far beyond sales.

1. Supply Chain Integration

Over 100 Indian suppliers are now part of Airbus’ global supply chain. Total sourcing from India was more than 1.4 billion USD in 2024. Indian companies manufacture critical components.

This significant contribution includes the manufacturing of critical components such as flap track beams, titanium machined parts, wing and fuselage structures, escape hatch doors, and various metallic detail parts. Indian companies also supply complex assemblies and sub-assemblies across Airbus’s major commercial aircraft programmes, including the A320neo, A330neo, and A350, as well as for Airbus helicopters like the H130. These components are vital to the structural integrity and performance of the aircraft, underscoring the high level of precision and quality delivered by Indian aerospace manufacturers.

The momentum continued in 2024 when IndiGo, India’s largest airline by fleet size and market share, placed an order for 500 Airbus aircraft, the largest single aircraft purchase in aviation history. This unprecedented move reinforced IndiGo’s commitment to fleet expansion and further solidified Airbus’ global supply chain. Indian companies manufacture critical components, including aerostructures, avionics, composites, and electrical systems. These parts are integrated into every Airbus aircraft produced, making Indian industry an integral contributor to Airbus’ global operations.

2. Engineering and Digital Innovation

Airbus operates engineering and digital centers in Bengaluru and Pune, where over 2,000 Indian engineers work on cutting-edge aviation projects—from aircraft design and digital manufacturing to AI-powered flight operations and cybersecurity. These centers are central to Airbus’ efforts to develop future-ready aviation solutions.

3. Skilling and Employment

In partnership with Indian academic institutions and skill development agencies, Airbus has initiated several training programs to upskill the Indian workforce in aviation-related disciplines. Thousands of Indian technicians, engineers, and specialists have benefitted from Airbus-supported skilling programs, particularly in aircraft maintenance, aerospace design, and advanced manufacturing.

Aviation Market Shift: Airbus Gaining Ground as Rivals Struggle

Ambassador Gupte’s visit also comes at a time when Airbus is pulling ahead of its competitors, most notably Boeing. The American aerospace giant has faced multiple challenges in recent years, including safety controversies, production delays, and regulatory scrutiny. This has caused hesitation among global carriers and created space for Airbus to capture greater market share.

In contrast, Airbus has consistently delivered on its promises—meeting timelines, maintaining high safety standards, and actively partnering with customers for long-term value creation.

Industry analysts observe that Airbus’ strategy of deeper local integration, flexible product offerings, and strong after-sales service has helped it not only retain its existing client base but also win new business in strategic markets like India.

Sustainability and the Future of Flight

Another critical area of cooperation between Airbus and India is sustainable aviation. As both Europe and India push toward greener technologies, Airbus is investing heavily in next-generation aircraft powered by sustainable aviation fuel (SAF), hydrogen, and hybrid-electric propulsion.

India, too, has pledged to reduce carbon emissions from aviation as part of its broader climate goals. Airbus is working with Indian authorities and private partners to support the ecosystem needed for low-emission aviation—including SAF infrastructure, policy support, and R&D collaboration.

“As India’s aviation sector scales, sustainability must be a priority. Airbus is committed to supporting India’s green aviation goals through technology, innovation, and global best practices,” an Airbus spokesperson stated.

Looking Ahead: A Shared Vision for the Next 60 Years

Ambassador Gupte’s visit is not just a ceremonial acknowledgment of the past—it is a nod to the future. With India’s aviation market projected to become the third-largest globally by 2030, Airbus and India are poised to co-create the next chapter in aerospace innovation.

From assembling aircraft components to co-developing cutting-edge aviation tech, and from training future aerospace engineers to building sustainable airports, the India–Airbus partnership is a model for global industrial collaboration.

As Airbus continues to strike bigger, better deals and bring more of India into its global fold, this partnership stands as a testament to what can be achieved when two innovation-driven ecosystems work together with vision and purpose.

 

 

 

 

 

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Jyotirmay Kaushal

Jyotirmay Kaushal

Dreaming of a reality that is a dream. A scribbler in the current incarnation with an avid interest in global affairs.

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