New Delhi: GE Aerospace plans to double its spending on Indian suppliers by 2030, giving a major boost to India’s aerospace manufacturing industry. The company aims to increase its annual supply chain spending in India from around USD 200 million in 2025 to nearly USD 400 million by 2030.
The announcement highlights India’s growing role in global aviation, defence manufacturing, engineering, and aircraft engine development. The plan is also expected to create more opportunities for Indian small and medium-sized businesses and strengthen the country’s domestic manufacturing capabilities.
Details of India GE Aerospace Defence Deal
GE Aerospace has announced a plan to double its annual spending on Indian suppliers by 2030. The announcement was made in New Delhi on October 12, 2026, during an industry event titled India Taking Flight – Aviation, Innovation And The Road To Viksit Bharat 2047.
The company plans to increase its annual spending on India’s supply chain from approximately USD 200 million in 2025 to nearly USD 400 million by 2030. This move is aimed at supporting local manufacturing and meeting the growing demand for aviation and defence equipment.
The announcement also reflects India’s increasing importance in the global aerospace industry. Indian companies already supply components, engineering services, and other products that support aircraft engines and aviation technologies around the world.
EY Report Highlights GE Aerospace’s 40-Year Contribution
During the event, GE Aerospace released a report prepared by Ernst & Young (EY), titled Powering Progress: GE Aerospace’s Economic Impact In India.
The report examines the company’s contribution to India’s engineering, manufacturing, commercial aviation, and defence sectors over approximately four decades.
It also highlights how GE Aerospace has supported local suppliers, developed engineering capabilities, and contributed to India’s aviation ecosystem. The report comes at a time when India is expanding its commercial aviation market and strengthening its domestic defence manufacturing industry.
India GE Aerospace Defence Deal: A Booming Commercial Aviation Market In India
India’s commercial aviation sector is growing rapidly as more people travel by air and airlines expand their operations. According to the figures presented in the report, domestic airlines generated around USD 19 billion in revenue during the 2025–26 financial year.
As of December 2025, more than 1,400 GE Aerospace and partner-built engines were powering most of India’s commercial airline fleet, according to the report. These engines have helped Indian airlines achieve passenger load factors of around 88.2%. Airlines have also maintained high aircraft utilisation, with aircraft operating for approximately 12 to 14 hours per day. These figures show the importance of reliable aircraft engines in supporting India’s growing air travel market.
Passenger Traffic Expected To Grow Further
India’s domestic passenger traffic is projected to increase from around 340 million in FY2026 to 1.1 billion by 2040.
This expected growth will increase demand for aircraft, engines, spare parts, maintenance services, and skilled aviation professionals. The country’s airport network is also expected to expand from 163 airports to more than 350 by 2047.
Meeting this demand will require major investment in aircraft, airport facilities, engineering, manufacturing, and maintenance services.
Thousands Of New Aircraft Could Support The Industry
The report estimates that India and the wider South Asian region will need approximately 3,300 new aircraft and 6,044 additional engines by 2044.
Indian airlines also have a large aircraft order backlog. Around 1,500 aircraft were reported to be on order, creating further opportunities for engine manufacturers and local suppliers. GE Aerospace expects its engines to power a major share of this future fleet.
In another important development, IndiGo signed a memorandum of understanding with CFM International in July 2026 for more than 1,000 LEAP-1A engines. CFM International is a joint venture between GE Aerospace and Safran Aircraft Engines. These engines are intended for the Airbus A320neo family of aircraft and highlight the scale of India’s future engine requirements.
India GE Aerospace Defence Deal: Aircraft Maintenance Could Become A Major Business
The growth in aircraft numbers will also increase demand for maintenance, repair, and overhaul (MRO) services. The report identifies an estimated USD 5.5 billion opportunity for India’s MRO industry.
A stronger domestic maintenance industry could help airlines reduce dependence on overseas facilities, develop local technical expertise, and create skilled jobs. It could also help India become a regional centre for aircraft maintenance and related aviation services.
FAQs
The plan could create more business opportunities for Indian aerospace manufacturers, component suppliers, and engineering companies. It may also encourage investment in modern machinery, automation, workforce training, and advanced manufacturing technologies.
GE Aerospace plans to double its annual spending on Indian suppliers to strengthen local manufacturing, support India’s growing aviation and defence sectors, and expand its supply chain. The company aims to increase spending from around USD 200 million in 2025 to nearly USD 400 million by 2030.
GE Aerospace supports India’s defence aviation through engine programmes and maintenance partnerships. Its F404-IN20 engines power Tejas Mk1 fighter aircraft, while its F414 engine programme is linked to the Tejas Mk2. The company also supplies LM2500 naval engines and provides support for the Indian Air Force’s Apache helicopter fleet.
