Aerospace Exports from India. The Complete Compliance & Opportunity Guide

India's Aerospace Export Landscape

India exported $3.2 billion worth of aerospace products and services in FY2024, making it one of the fastest-growing segments in India's export basket. The National Aerospace Policy (NASP) has set an ambitious target of $25 billion in aerospace exports by 2025, backed by policy incentives, offset obligations, and a growing base of globally certified manufacturers.

The sector is anchored by a mix of public-sector defence companies and private-sector precision manufacturers. Key players include:

Public Sector

• · HAL (Hindustan Aeronautics Limited). India's largest aerospace company, exports fighter aircraft components, helicopter assemblies, and aero engine parts
• · BEL (Bharat Electronics). Avionics, radar systems, electronic warfare equipment
• · BEML. Aerospace-grade forgings and ground support equipment

Private Sector

• · Tata Advanced Systems. Aero structures for Boeing AH-64 Apache, Sikorsky S-92, C-130J
• · Mahindra Aero. Aero structures, cabin interiors, UAV systems
• · Dynamatic Technologies. Flap track beams for Airbus A320, Boeing 787 components
• · Hindustan Composites. CFRP structures, composite panels

India's competitive advantage lies in three areas: a large pool of aerospace engineers (over 100,000 graduating annually), cost advantages of 25-40% over Western manufacturers for precision machining and composites, and a growing network of AS9100-certified facilities. The challenge is navigating the regulatory complexity. Aerospace exports sit at the intersection of civil aviation safety rules, military export controls, and international technology transfer regimes.

What India Exports in Aerospace

India's aerospace exports span the full spectrum from raw material processing to complete assemblies and services. Here is what the export basket looks like:

• Aero Structures. Fuselage panels, wing components, doors, fairings, and structural assemblies. Boeing and Airbus source significant structural work from Indian tier 1 suppliers.
• Aero Engines & Engine Components. Compressor blades, turbine discs, combustion liners, fan cases, and engine mounts. Safran and Rolls-Royce have active partnerships with Indian manufacturers.
• Landing Gear Components. Main and nose landing gear parts, actuators, struts, and brake assemblies. High-strength steel and titanium forging capabilities are key.
• Avionics & Flight Electronics. Flight control computers, display units, communication systems, radar sub-assemblies, and navigation equipment.
• Composite Materials & Structures. Carbon fibre reinforced polymer (CFRP) panels, honeycomb structures, radomes, and composite tooling. Growing segment with 20%+ annual growth.
• Precision Machined Parts. Titanium, inconel, and aluminium alloy components machined to aerospace tolerances (typically 0.001-0.01mm). India's fastest-growing aerospace export category.
• MRO Services. Maintenance, repair, and overhaul of airframes, engines, and components. India services aircraft from South Asia, Middle East, and Africa.
• Helicopter Components. Rotor blades, transmission housings, tail boom assemblies, and dynamic components for both civil and military helicopters.
• UAV/Drone Components & Systems. Airframes, flight controllers, propulsion systems, payload integration, and complete UAV platforms for agriculture, mapping, and logistics.
• Cabin Interiors & Galleys. Seat structures, galley inserts, overhead bins, lavatory modules, and interior panels. Low-weight certification is critical.
• Wire Harnesses & Connectors. Electrical wiring interconnection systems (EWIS), cable assemblies, and aerospace-grade connectors. Labour-intensive, cost-advantaged in India.
• Forgings & Castings. Titanium and nickel superalloy forgings, investment castings, and sand castings for structural and engine applications.

Regulatory Framework

Aerospace exports are regulated at multiple levels. Indian domestic authorities, bilateral safety agreements, international quality standards, and multilateral export control regimes. Here is the full picture:

Indian Authorities

• DGCA (Directorate General of Civil Aviation). Certifies civil aviation products, issues type certificates, and approves production organisations for civil aircraft and components.
• CEMILAC (Centre for Military Airworthiness & Certification). The military equivalent of DGCA. Issues military type certificates, airworthiness clearances, and production approvals for defence aerospace items.
• DGFT. Controls export of SCOMET-listed items through export authorizations. Aerospace items can fall under multiple SCOMET categories.

International Aviation Authorities

• FAA (US). Part 21 production approval is needed for exporting components to US-registered aircraft. India and the US have a BASA (Bilateral Aviation Safety Agreement) that facilitates mutual recognition of airworthiness certifications.
• EASA (EU). Part 21 for design and production organisations, Part 145 for MRO services. Required for exporting to EU-registered operators and airlines.

Quality & Process Standards

• AS9100/9110/9120. The aerospace quality management system family. AS9100 for manufacturing, AS9110 for MRO, AS9120 for distributors. Built on ISO 9001 with aerospace-specific additions for traceability, configuration management, and risk.
• NADCAP (National Aerospace and Defense Contractors Accreditation Programme). Accredits special processes including welding, heat treatment, non-destructive testing (NDT), chemical processing, coatings, and composites. Required by most OEMs for any special process work.

Export Control Regimes

• SCOMET. India's export control list. Relevant categories for aerospace: Category 1 (special materials. Titanium alloys, superalloys, composite prepregs), Category 3 (electronics (avionics, navigation, radar), Category 6 (munitions) military aircraft, weapon systems), Category 7 (marine and aerospace items). See our SCOMET deep dive.
• ITAR (US International Traffic in Arms Regulations). Controls US-origin defence articles. USML Categories VIII (aircraft and related articles), XII (fire control equipment), and XIX (gas turbine engines and associated equipment) are the main aerospace categories. Applies to any item incorporating US-origin technology.
• EAR (US Export Administration Regulations). Category 9 covers propulsion systems, spacecraft, and related test equipment. Applies to dual-use items that are not on the USML but have military-significant applications.

Certifications Needed for Aerospace Exports

The certification landscape for aerospace is the most demanding of any export sector. Here is a consolidated view of what you need and when:

Defence Offset Opportunities

India's Defence Offset Policy is one of the biggest demand drivers for aerospace exports. Foreign OEMs winning defence contracts above Rs 2000 crore must invest at least 30% of the contract value back into India through technology transfer, manufacturing, or sourcing from Indian companies.

Boeing India Offsets (~$4.5 billion committed)

Boeing sources aero structures, wire harnesses, and avionics sub-assemblies from India. Tata Boeing Aerospace (Hyderabad) manufactures AH-64 Apache fuselages. Boeing has over 300 Indian suppliers across its programmes including 737, 777X, P-8I, and Chinook. Tier 2/3 opportunities exist in precision machining, composites, and forgings.

Airbus India Offsets (Tata-Airbus C-295)

The Tata-Airbus C-295 transport aircraft production line in Vadodara is India's first private-sector military aircraft manufacturing facility. 40 of the 56 aircraft ordered by the Indian Air Force will be manufactured in India. This creates a deep supply chain of aero structure, avionics, and systems integration work for Indian companies.

Lockheed Martin F-16 Wing Partnership

Tata Advanced Systems manufactures F-16 wings at its Hyderabad facility. The only F-16 wing production line outside the US. This is a landmark offset arrangement that demonstrates India's capability to produce flight-critical aero structures for frontline military aircraft.

Engine Partnerships

Safran and Rolls-Royce both have significant manufacturing partnerships in India. Safran's HAL joint venture produces engine components, while Rolls-Royce sources compressor blades, turbine discs, and precision castings from Indian suppliers. Engine work demands the highest certifications (NADCAP for every process) but also commands the highest margins.

Export Authorization Process

The export authorization process for aerospace items depends on whether the item is civil or military, whether it is on the SCOMET list, and whether US-origin technology is involved. Here is the step-by-step flow:

• Check SCOMET Applicability. Cross-reference your product against the SCOMET list (Appendix 3 to Schedule 2 of the ITC-HS). Pay special attention to Categories 1, 3, 6, and 7 for aerospace items. If your product is not on the SCOMET list and is not prohibited or restricted, you can export freely under Open General License.
• DGFT Authorization for SCOMET Items. If your item is SCOMET-listed, apply for an export authorization from DGFT through the online portal. You will need: product technical specifications, end-user certificate, end-use statement, government-to-government agreement (for military items), and details of any foreign technology incorporated. Processing time is typically 4-8 weeks.
• Airworthiness Certificate. For complete assemblies and flight-critical components, obtain an airworthiness certificate from DGCA (civil) or CEMILAC (military). This certifies that the exported item meets the applicable design and manufacturing standards. Not required for raw materials, sub-components, or non-flight-critical parts.
• End-User Certificate for Military Items. Military aerospace exports require an end-user certificate (EUC) from the importing country's government. The EUC must state that the items will be used only for the stated purpose and will not be re-transferred without India's consent. The Ministry of Defence verifies the EUC before DGFT issues the export authorization.
• ITAR/EAR Compliance Check. If your product incorporates any US-origin technology, data, software, or components, check ITAR (USML) and EAR applicability. US-origin content triggers re-export controls. You need US State Department (ITAR) or Commerce Department (EAR) authorization in addition to Indian export authorization. This is independent of and in addition to SCOMET compliance.
• Customs Clearance. File shipping bill on ICEGATE, present the export authorization (if SCOMET), airworthiness certificate (if applicable), and standard export documents (commercial invoice, packing list, certificate of conformance). Customs may require physical inspection for SCOMET items.

Special Case: MRO Services Export

MRO services follow a different process. The aircraft or component arrives in India for repair and is re-exported after servicing. GST is zero-rated for foreign-registered aircraft MRO. File a re-export shipping bill under ICEGATE with the original import reference. No SCOMET authorization is typically needed for MRO on items that entered India legally, but verify if the repair involves any ITAR-controlled technical data or processes.

MRO Export Opportunity

India's MRO (Maintenance, Repair, and Overhaul) market is valued at .7 billion and growing at approximately 10% annually. The government has made a concerted push to make India an MRO hub for the region, and the policy support is real:

GST Reduction

GST on MRO services was cut from 18% to 5%, and further to NIL for foreign-registered aircraft. This single change has made Indian MRO pricing competitive with Singapore and the UAE.

Certifications Needed

EASA Part 145 and/or FAA Part 145 repair station certification is needed to service foreign aircraft. DGCA CAR 145 is the Indian equivalent. Most customers require at least two of these three.

Customer Base

Foreign airlines (especially Middle East, South Asia, Africa), foreign defence forces, business aviation operators, and helicopter operators. India's geographic position makes it a natural MRO hub for routes between Europe and Asia-Pacific.

Key Players

Air Works (now Indamer), Air India Engineering Services (AIESL), HAL MRO Division, GMR Aero Technic, and Max Aerospace & Aviation. New facilities are coming up in Nagpur, Hosur, and Jewar (Noida International Airport).

HS Codes for Aerospace Exports

Correct HS classification is critical for aerospace exports. It determines your RoDTEP eligibility, duty drawback rate, SCOMET applicability, and customs clearance process. Use our HS code lookup tool for detailed classification assistance.

Export Benefits & Incentives

Aerospace exporters can tap into a range of government incentives. The key constraint is that SCOMET items may be excluded from some schemes. Always verify eligibility at the HS code level.

RoDTEP on Non-SCOMET Components

RoDTEP (Remission of Duties and Taxes on Exported Products) reimburses embedded central, state, and local duties and taxes that are not refunded through other mechanisms. Available on aerospace components that are not on the SCOMET list. Check your specific HS code rate using our RoDTEP calculator.

EPCG Scheme for Capital Goods

The Export Promotion Capital Goods (EPCG) scheme allows duty-free import of capital goods against an export obligation of 6 times the duty saved over 6 years. For aerospace manufacturers, this covers CNC machining centres, autoclaves for composites, NDT equipment (X-ray, ultrasonic, eddy current), coordinate measuring machines (CMMs), and heat treatment furnaces.

Advance Authorisation for Raw Materials

Advance Authorisation provides duty-free import of raw materials and intermediates used in export products. For aerospace, this covers titanium billets and bars, inconel and other nickel superalloy stock, CFRP prepregs and carbon fibre, aluminium alloy sheets and plates (2024, 7075 series), and specialty fastener stock. The duty savings on aerospace-grade raw materials can be 7.5-15% of material cost.

SEZ Benefits for Aerospace Parks

India has dedicated aerospace SEZs at Adibatla (Hyderabad), Belgaum (Karnataka), and Nashik (Maharashtra). SEZ units get full customs duty exemption on imports, GST exemption on domestic procurement, income tax holiday under Section 10AA, and simplified compliance. The SEZ benefits guide covers the full framework.

PLI for Drones & Defence Production Corridors

The Production Linked Incentive scheme for drones and drone components provides a financial incentive of up to 20% of value addition for manufacturing in India. The Defence Production Corridors in Uttar Pradesh (Lucknow-Kanpur-Agra- Jhansi-Chitrakoot) and Tamil Nadu (Chennai-Hosur-Coimbatore- Salem-Tiruchirappalli) offer additional state-level incentives including subsidised land, power, and capital investment support.

National Aerospace Policy Incentives

The NASP provides additional incentives for aerospace manufacturing including simplified regulatory approvals, offset credit banking, technology transfer facilitation, and testing infrastructure access. Companies setting up aerospace manufacturing with an investment above Rs 100 crore can access fast-track single-window clearance.

Supply Chain Entry for MSMEs

Aerospace is not only for large companies. India needs hundreds of tier 2 and tier 3 suppliers to meet the growing demand from OEMs and their tier 1 partners. Here is how an MSME can enter the supply chain:

How to Become a Tier 2/3 Supplier

1. Identify your capability fit. Aerospace needs precision machining (3-5 axis CNC), sheet metal fabrication, surface treatment (anodising, cadmium plating, chromating), composite layup, wire harness assembly, and rubber/polymer moulding. Pick the area where your existing capability is closest.
2. Get ISO 9001 certified. This is the entry ticket. No aerospace prime or tier 1 will consider you without it. Budget Rs 3-5 lakh and 6-9 months.
3. Register with HAL, Tata, and Mahindra vendor portals. HAL has a formal vendor development programme. Tata Advanced Systems and Mahindra Aero actively seek new suppliers. Register, upload your capability brochure, and respond to RFQs.
4. Start with non-critical parts. Your first aerospace orders will be jigs, fixtures, tooling, ground support equipment, or non-flight-critical brackets and covers. Build a quality track record on these before graduating to flight-critical work.
5. Upgrade to AS9100D. Once you have a quality track record and a pipeline of aerospace orders, invest in AS9100D. This unlocks tier 2 status and direct relationships with OEMs.

Government Support for Aerospace MSMEs

• · SIDBI. Provides credit support and technology upgrade loans specifically for aerospace and defence MSMEs. The Credit Guarantee Fund can cover up to 85% of collateral-free loans.
• · NSIC (National Small Industries Corporation). Facilitates MSME participation in government tenders and provides raw material assistance at competitive rates.
• · Defence Offset Sub-tier. OEMs fulfilling offset obligations often source from MSMEs through their tier 1 Indian partners. This is an accessible entry point even without AS9100D.
• · Skill Development. Aerospace-specific ITIs and training centres have been set up in Bengaluru, Hyderabad, and Nashik. The Aerospace and Aviation Sector Skill Council (AASSC) offers certified training programmes for CNC operation, NDT, and composite manufacturing.

UAV/Drone Export Rules

India's drone sector has seen rapid policy reform since 2021, and drone exports are now a growing opportunity. Here is the regulatory framework:

DGCA Drone Rules 2021

All drones manufactured in India need a type certificate from DGCA before they can be sold or exported. The type certificate confirms that the drone design meets safety, airworthiness, and operational requirements. The process involves design review, prototype testing, and production quality assessment. Timeline is typically 3-6 months for simple designs, longer for complex systems.

SCOMET Restrictions for Military UAVs

UAVs capable of carrying a 500 kg payload over 300 km range fall under Missile Technology Control Regime (MTCR) restrictions and are SCOMET-listed. Export of such systems requires explicit DGFT authorization and typically a government-to-government agreement. Smaller commercial drones for agriculture, mapping, and logistics are generally outside SCOMET scope, but always verify at the component level. Cameras, GPS modules, and flight controllers with certain specifications may independently be controlled items.

PLI for Drones

The PLI scheme for drones covers manufacturing of complete drones and drone components including airframes, propulsion systems, flight controllers, cameras, sensors, and ground control stations. The incentive is up to 20% of value addition over a three-year period. Exports count toward the PLI eligibility threshold.

Export Markets

India's main drone export markets are: agriculture drones (Africa, Southeast Asia, Latin America), survey and mapping drones (Middle East, Africa), logistics and delivery drones (pilot markets in Southeast Asia), and defence/surveillance UAVs (friendly nations under government-to-government agreements). Price competitiveness of 30-50% over Western alternatives is India's main selling point.

Frequently Asked Questions

Related resources

Defence Export Compliance Guide

Complete guide to exporting defence products from India. Licensing, end-user certificates, and offset obligations.

SCOMET Export Controls Deep Dive

Understand India's SCOMET list, categories, and the DGFT authorization process for controlled items.

Semiconductor Export Compliance

Another strategic sector with overlapping export controls. Avionics and flight electronics often use controlled semiconductors.

Update history

• 2026-08-12 First published.