Andalusian Aerospace Industry Expansion
- Jimena H.
- Jun 28, 2024
- 3 min read
27/06/2024
Airbus A400M Assembly in Sevilla
The final assembly line for the A400M aircraft, located at the Airbus Military facilities in the San Pablo Industrial Park in Sevilla, has begun assembling the first aircraft that the German Air Force will receive, out of a total order of 53 units.
Andalusian Aerospace Industry in India
The Andalusian aerospace industry is striving to establish a presence in India, the third-largest market globally, after the US and China. From June 24 to 28, ten Andalusian aerospace companies are engaging in a comprehensive business agenda in Delhi, Bangalore, and Hyderabad.This commercial mission, organized by Andalucía Trade (Agency for Economic Transformation and Development) along with ten Andalusian aerospace firms, aims to tap into this high-potential market, which is strategic for the diversification of Andalusian companies. The mission's objectives include understanding the opportunities in India's aerospace sector, identifying key sector agents (institutions, OEMs, Tier I and Tier II suppliers), visiting various manufacturers' facilities, and gathering information on intellectual property protection in the country.
Key Meetings and Opportunities
During the mission, Andalusian companies have had the opportunity to meet with prominent companies such as Airbus India, Tata Advanced Systems Limited, and Mahindra Aerostructures. Additionally, they engaged with government representatives from Invest India and the Ministries of Civil Aviation and Defense.This initiative is part of a broader strategy coordinated with the Andalucía Aerospace cluster, which includes participation in strategic fairs and missions to high-interest countries. Notably, the commercial agenda for this mission was shaped during ADM Sevilla 2024, the largest aerospace event in Spain, also organized by Andalucía Trade.
Growth in Exports
This mission coincides with a significant increase in Andalusian aerospace exports, which reached a record value of 1.12 billion euros in the first four months of 2024, marking a 158% year-over-year increase. Companies participating in the mission hail from Cádiz (Titania and M&M), Jaén (Grupo Sicnova), and Sevilla (Airgrup, Airtificial Aerospace & Defense Engineering, Canagrosa, Alestis Aerospace, Lamaignere Cargo, Andalucía Aerospace, Airgrup Machining).According to Andalucía Trade, India's aerospace industry has seen notable growth and transformation over the past decade. The Indian government is fostering the sector's development by providing a stable policy environment and incentivizing growth driven by competition.
India's Aerospace Market
India presents numerous business opportunities for the Andalusian aerospace sector, exemplified by the project to manufacture 56 Airbus C295 aircraft for the Indian Air Force, 16 of which will be built and delivered from Andalucía.The participation in this initiative is co-financed by funds from the European Union, under the FEDER Operational Program of Andalucía 2021-2027, with an 80% community contribution, or any other European Program eligible for co-financing this action.India's internal market is substantial, and its geographic location makes it a strategic gateway to Asia. The country boasts solid economic growth, with a projected GDP growth of 6.5% in 2024. Ranked as the fifth-largest economy globally, India is expected to rise to third place by 2030. The nation's openness to international trade is demonstrated by its treaties with countries like Australia, the UAE, and Canada, as well as ongoing negotiations for an agreement with the EU, positioning Andalucía favorably to access this market.
Furthermore, the liberalization of the sector for foreign investment has been a major growth driver, covering areas like airport development, MRO (maintenance, repair, and overhaul) infrastructure, and the provision of helicopter and non-scheduled civil flight services. Many aerospace manufacturers, including Airbus, Boeing, and Safran, are establishing operations in India, attracting a supply chain around them. India has also approved a program to develop 100 small airports, heliports, and water aerodromes as part of a plan to develop and operate up to 220 airports over the next five years.
Sources:
El Debate (2024). La industria aeronáutica andaluza busca hacerse hueco en India, tercer mercado mundial tras EEUU y China.
Andalucía Trade.
Airbus Military.
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