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India’s Private Sector Bets Big on Aerospace and Defense

(Meet Desai, is the Co-Founder and Promoter of TechEra. In this article he explains how India is emerging as a big player in the aerospace and defense sector)

India’s aerospace and defense (A&D) sector is undergoing a significant transformation. From a government-dominated industry, it is steadily opening its doors to private players. With the Indian government pushing for self-reliance through initiatives like Atmanirbhar Bharat and Make in India, the private sector now has a unique opportunity to play a pivotal role in building a robust defense manufacturing ecosystem.

Meet Desai, Director TechEra

Several Indian companies—large corporations and ambitious MSMEs—have already made strategic investments in the sector. Yet, for India to truly benefit from this wave of private investment, the country must address several foundational challenges, including supply chain maturity, long gestation cycles, process standardization, and above all, building trust and capability.

The Momentum Behind Private Investment

Private participation in the aerospace and defense sector has picked up pace over the last decade. Policy reforms, easing of FDI norms (up to 74% through automatic route in defense manufacturing), and increased defense procurement from indigenous sources have encouraged more private companies to explore this space.

Aerospace and Defense: A Sector That Demands Patience and Planning

One of the first things investors and entrepreneurs in this sector realize is that the A&D industry is a long game. This is not a “build today, sell tomorrow” model. The development cycle—from prototype to production to revenue—can stretch across 3 to 5 years or more. Investments in infrastructure, R&D, certifications, and team building must be made with a long-term vision. The results are not instant, but when they arrive, they are impactful and sustained.

A company entering this field must be prepared for heavy capital outlay. Investments in world-class machines, process automation, software tools, environmental control systems, and qualified manpower are non-negotiable.

Aerospace and defense clients, whether they are government agencies like DRDO, HAL, ISRO, or global OEMs like Boeing, Airbus, and Lockheed Martin, demand unwavering commitment to quality, confidentiality, and process discipline.

Trust is the Cornerstone

One of the most critical challenges in this sector is building and maintaining client trust. Unlike other industries where purchase orders can be based on cost and delivery alone, in aerospace and defense, trust is earned slowly and can be lost quickly.

Clients look for long-term partners, not transactional vendors. This makes the initial phase crucial. Building relationships, establishing credibility, and demonstrating capability take time. Many firms report that after a client visits their facility and sees the infrastructure and team, the conversion cycle still takes nearly a year.

During this period, it is essential for the company to stay visible in the client’s ecosystem—through follow-ups, consistent communication, and showcasing ongoing improvements. The buyer must be constantly reminded that there exists a capable company that can support their A&D requirements.

Understanding the Segments Within Aerospace

Aerospace itself is not a monolithic industry. It comprises several specialized segments—electronics, structural parts, machining, assembly, composites, and advanced materials. Each segment has its own standards, supply chain dynamics, and technological demands.

Entry barriers are particularly high in commercial aerospace compared to defense. While the defense segment deals with higher confidentiality and secrecy clauses, commercial aerospace players like Boeing and Airbus require years of proven track record, global certifications, and rigorous audits before a supplier can be approved.

Furthermore, the aviation industry demands a greater level of detailing than most other industries. This makes training and upskilling of personnel extremely important. The technicians, engineers, and quality professionals must be trained not just on tools and machines but also on mindset—attention to detail, process orientation, and zero-defect delivery.

The Process-Based Approach: A Non-Negotiable Requirement

In this sector, the product is only as good as the process. Unlike other manufacturing domains where improvisation is sometimes allowed, aerospace and defense demand a process-based approach. Every operation must be standardized, documented, and repeatable.

Process control is everything—starting from raw material procurement, storage conditions, machining tolerances, inspection methods, testing procedures, to final documentation and traceability. Without process rigor, a company cannot scale or sustain its position in this market.

Hence, India’s ecosystem must support companies in adopting global best practices. Initiatives like establishing Center of Excellence (CoEs), subsidizing training programs, and providing access to testing and validation infrastructure can go a long way in boosting process maturity.

What India Needs to Do to Prepare for the Opportunity

  1. Strengthening the Supply Chain
    India must develop a network of Tier 2 and Tier 3 suppliers that are capable of meeting aerospace standards. These small and medium players need support in the form of technical training, funding access, and quality certifications.
  2. Fostering Skilled Talent
    There’s a critical need to build a skilled workforce trained specifically for A&D requirements. Engineering colleges, ITIs, and vocational centers should align their curriculum with the needs of the aerospace sector.
  3. Reducing Time-to-Market
    Simplifying regulatory approvals, speeding up testing and certifications, and providing fast-track clearances can help reduce the long gestation period that discourages private investors.
  4. Public-Private Partnerships
    The government should actively involve private players in strategic projects and provide them co-development opportunities with DRDO, HAL, and ISRO. This can lead to technology transfer, faster productization, and deeper ecosystem integration.
  5. Incentivizing Investment
    Given the heavy capital investment required, tax incentives, infrastructure support, and easier credit lines can encourage more private players to enter and stay in the market.
  6. Promoting Export-Oriented Ecosystem
    India can aim to become a global hub for aerospace component exports. To do that, Indian companies need support in meeting international compliance standards and gaining access to overseas markets.

 

Swapnil Gholap, Head of Project Management, TechEra says “In aerospace, we face several challenges that span across multiple domains. One of the key challenges is related to materials. Often, when dealing with global aerospace companies, we’re working with systems and infrastructure that were developed two or three decades ago. Today, sourcing the exact same materials or components used back then can be quite difficult. In such cases, we explore alternative materials that can serve the same purpose without compromising on performance.

Another approach is to import raw materials from global vendors at the most competitive costs.

Aerospace is still relatively new in India—it’s only over the past decade that the sector has really started to flourish. Unlike other industries, aerospace demands extremely tight tolerances and high levels of precision in manufacturing. It’s a cutting-edge environment that requires advanced processes and meticulous attention to detail.

At TechEra, although we’re just a six-year-old company, we’ve built a dedicated engineering team focused on developing robust processes. We are committed to maintaining the highest standards of quality in everything we do.”

Avinash Deshmukh , Head of Business Development TechEra says, “Our first priority is to invest in training our people. Aerospace is a highly complex domain, and the availability of skilled human resources in the market is extremely limited. The kind of expertise we require is not readily available.

So, our approach is to identify technically competent individuals—regardless of the industry they currently belong to. Whether someone is from the automotive sector, the energy industry, or another technical background, what matters to us is their fundamental knowledge of machining, processes, materials, and inspection. Once we identify such talent, we onboard them and provide specialized training in aerospace. Over time, we build a team that follows processes rigorously—because in aerospace, following the process is more critical than even the end result.”

“My core responsibility is to drive business growth for TechEra. We do this primarily by participating in aero-defence expos, where we network with clients and potential partners. We visit the stalls of OEMs, exchange contacts, and initiate meaningful conversations. Another important channel is referrals from our existing satisfied customers, which plays a significant role in expanding our business.”

 

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