Indian aerospace exports have witnessed an increase despite a dip in shipments to the United States (US), which was the top destination for six consecutive years before slipping to second and fourth place in the financial year 2023-24 (FY24) and FY25, respectively, data from the Ministry of Commerce and Industry showed.
The US was overtaken by Kuwait in FY24. The United Arab Emirates (UAE), Saudi Arabia and France moved ahead of it in FY25. Over the period under review (FY18-FY25), the US’ share of Indian aerospace exports stayed above 30 per cent for five consecutive years (FY19–FY23), peaking at over 35 per cent in FY20, before dropping to below 15 per cent in FY24 and then
further to just over six per cent in FY25.
India’s exports of aircraft, spacecraft and parts entered a slump in FY19, marking the beginning of a decline that continued through FY22. Although exports in this category recovered in FY23, they remained below FY18 levels. A sharp reversal began in FY24, with exports rising by nearly 127 per cent year-on-year, followed by a second sharp increase of almost 115 per cent in FY25. Taken together, aerospace exports tripled between FY18 and FY25, increasing from $2.26 billion to $6.96 billion, while their share in India’s total exports more than doubled from 0.75 per cent to 1.6 per cent.
Growing the domestic aerospace ecosystem is viewed by the government as both an economic and a security imperative, driven by the nature of the business on the defence side. The large-scale investments required to design, develop and eventually manufacture today’s complex airpower systems— ranging from radar-evading jets to increasingly lethal autonomous platforms—are simply not feasible if firms and organisations cater only to the relatively lower volumes of the military market.
Globally, aviation majors often draw on technologies developed on the commercial side, where sales volumes are far higher, and translate these spin-offs into cutting-edge military applications. In India, however, public sector entities that have led much of the aerospace research and development have largely focused on military platforms, barring rare exceptions such as small civilian transport aircraft or civil spin-offs of military helicopters.
Against this backdrop, export-led growth is essential if the sector is to integrate more deeply into global civil aviation supply chains and move up the value ladder, which could, over time, yield spin-off benefits for the country’s defence ecosystem as well. Given the size of the US aviation market—spanning both civil and defence and home to companies such as Boeing and Lockheed Martin—regaining a foothold there would meaningfully bolster India’s aerospace exports.
A joint statement between India and the US earlier in February referred to a framework for an Interim Trade Agreement that would include the US removing tariffs on certain aircraft and aircraft parts from India.
Aerospace climbs out of stall, lifting share
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