Airbus Taps $1B Indian Supply Chain as Rolls-Royce Builds Mega Innovation Centre

India is rapidly emerging as a global hub for aerospace and defence innovation, attracting some of the world’s largest players.

Two giants—Airbus and Rolls-Royce—are strengthening their presence in India with major investments, partnerships, and long-term strategies that highlight the country’s growing role in both commercial aviation and military technology.

Airbus: Strengthening Supply Chains and Innovation

Union Minister of Electronics & IT, Ashwini Vaishnaw, recently announced that Airbus is sourcing over $1 billion worth of components from more than 100 Indian suppliers. This was shared after his meeting with Jürgen Westermeier, Airbus India & South Asia MD, where the company’s manufacturing roadmap was discussed.

Airbus also plans to set up a Research & Development Centre of Excellence at Gati Shakti Vishwavidyalaya, Vadodara, further integrating India into its global design and innovation network.

Currently, Airbus employs around 3,600 professionals in India, including 1,500 IT experts, and already sources $1.4 billion annually. With a target of $2 billion by 2030, the company is not only expanding its supply chain but also reinforcing India’s role in its future growth.

Rolls-Royce: Innovation Hub and Defence Ambitions

Meanwhile, Rolls-Royce is expanding aggressively in India. On September 17, 2025, the company announced the launch of its first Global Capability Innovation Centre (GCC) at Manyata Embassy Business Park, Bengaluru. This 700-seat advanced facility will focus on digital capabilities, enterprise services, and engineering support for both civil aerospace and defence.

The timing of this expansion is strategic. While it strengthens Rolls-Royce’s digital and R&D base, it also positions the company for big-ticket defence deals in India.

Recent commitments underline this:

• February 2025 (Aero India): A seven-year deal with Azad Engineering (Hyderabad) to produce complex rotating parts for military aircraft engines.
• August 2025 (UK–India SETA Defence Roadmap): Plans to scale up MRO services and supply chain operations, including support for the AE-2100 engine.
• Pre-GCC pledges: Establishing a new MRO facility, R&D and training hub, and expanding the IMPL joint venture in Tamil Nadu.

The centrepiece, however, is Rolls-Royce’s interest in co-developing a sixth-generation combat engine for India’s Advanced Medium Combat Aircraft (AMCA) programme.

Competing against GE (U.S.) and Safran (France), Rolls-Royce is offering India access to cutting-edge technologies from the Global Combat Air Programme (GCAP), along with potential export rights and full ownership.

The Bigger Picture: India as a Global Aerospace Hub

Both Airbus and Rolls-Royce moves reflect a strategic bet on India’s aerospace growth.

• Airbus is deepening India’s integration into its global supply chain and helicopter production, while boosting R&D capacity.
• Rolls-Royce is anchoring its presence with a world-class innovation centre and aiming for a pivotal role in India’s next-generation defence programmes.

Together, their combined strategies could transform India into a centre of excellence for aerospace design, manufacturing, and innovation, aligned with the government’s Atmanirbhar Bharat vision.

With India’s defence budget exceeding $70 billion annually, and its commercial aviation market witnessing record-breaking aircraft orders, the opportunities are vast. For Airbus and Rolls-Royce, India is no longer just a market—it is becoming a strategic partner and innovation hub for the future of aerospace.

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