Airbus Boosts India Procurement to Scale Global Supply Chain

Airbus is deepening its investment in India’s aerospace sector with a plan to increase annual procurement to US$2bn by 2030.

This long-term sourcing strategy is rooted in a growing need for scalable supply chain infrastructure, cost-effective logistics and skilled engineering support.

India’s position in the Airbus global network is not new, but its role is evolving fast.

With more than 700 Airbus planes already flying in India and in excess of 1,300 on order, the need to secure dependable procurement and logistics channels is urgent.

Both Air India and IndiGo have made vast fleet expansion commitments. Air India has pledged to acquire 50 A350 wide-body aircraft, while IndiGo has placed orders for more than 900 planes.

These growing domestic requirements provide the commercial foundation for Airbus to prioritise local sourcing and logistics.

Guillaume Faury, Chief Executive Officer of Airbus, highlights the long-term strategic value in India’s talent and engineering potential.

Speaking to Indian journalists on the side lines of the Airbus Summit 2025 in Toulouse on 25 March, he says: “India should play on its strengths and not try to replicate what others have been doing in the past. India is really a fantastic asset in engineering, IT, systems and software, I think that is where India has a win-win from both sides.”

He also acknowledges the supply-side challenges: “Our challenge at Airbus is to support the speed of growth of the aviation industry in India... the growth trajectory of India is significantly ahead of that of the world. The challenges are with respect to expertise, HR, hiring, training... (and maintaining) the growth in the best possible conditions.”

Strategic sourcing and local partnerships

At the centre of this procurement push is a clear supply chain strategy: to localise more of Airbus’s sourcing across manufacturing, services and engineering. This includes reinforcing relationships with Indian industry leaders such as Tata Group, Mahindra Group and Dynamatic Technologies.

Airbus collaborates with Tata on the Final Assembly Line (FAL) for the C295 military aircraft in Vadodara. It also sources A220 Family aircraft doors from Dynamatic Technologies.

These partnerships illustrate a direct investment into India’s logistics and sourcing ecosystem, ensuring Airbus is not only sourcing parts, but embedding suppliers into its broader engineering network.

The company’s goal is to build a robust and scalable procurement model that integrates Indian suppliers into its global supply base.

This includes adapting workflows to align with Airbus's international operations and standards, while enhancing technical capacity in India.

With over 3,600 Airbus employees spread across Indian locations and more than 15,000 jobs supported through its extended supply chain, the logistical footprint is already sizeable.

As procurement ramps up, so too will Airbus’s engagement in local sourcing, supplier development and regulatory compliance.

Procurement challenges and supply chain risks

Sourcing at scale in India is not without challenges.

Airbus aims to increase annual procurement to US$2bn, but such an ambitious target requires substantial changes in the country’s aerospace procurement landscape.

Capability gaps in high-skill areas like systems integration, as well as inconsistent infrastructure, may hinder rapid logistics expansion. These risks could affect lead times and add strain to Airbus’s global supply chains.

The company’s response is a blend of investment and collaboration. Skill development initiatives and supplier training programmes are being launched to close capability gaps and meet global certification standards.

One model being used to navigate supply chain risks is co-investment in infrastructure. The C295 FAL, for example, gives Airbus control over key logistics nodes, helping manage risk from external suppliers or infrastructure bottlenecks.

Quality assurance across India’s varied supplier base is another concern.

Airbus addresses this by providing supplier audits, training and ongoing support in areas such as standard operating procedures and global compliance.

While challenges persist, these steps form the foundation of a more resilient sourcing and logistics network that Airbus hopes will underpin its future growth in India and beyond.

Procurement as a growth catalyst

At its core, this procurement initiative is not only about cost or capacity. It is a move to integrate India’s supply chain strengths into Airbus’s long-term strategy for resilience and scalability.

With global aerospace demand on the rise, Airbus’s investment in India’s sourcing and logistics ecosystem aims to create both economic and strategic returns.

India’s aviation sector is expanding and Airbus is positioning itself to utilise this change through greater localisation of manufacturing, procurement and services.

By working closely with Indian firms and building technical infrastructure, the company is creating a foundation for long-term growth.

This approach aligns with Airbus’s global needs while directly supporting India’s aspirations to become a key aerospace hub.

With enhanced supply chain integration and expanded procurement, the relationship between Airbus and India’s industrial base is set to deepen.

As this collaboration evolves, the expected benefits go beyond sourcing – they include job creation, skills development, foreign investment and stronger resilience in the face of global logistics disruptions.

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