Aerospace & Defense Exporter Alert, Feb. 2024
February 2024
Welcome to the Aerospace & Defense Exporter Alert brought to you by the U.S. Department of Commerce’s, Industry & Analysis-Aerospace Office and U.S. Commercial Service.
Each edition highlights an important aerospace and defense market, industry policy and our signature events. We also include tools to export such as export statistics, market research, trade events and U.S. government advocacy.
Our mission is to increase U.S. exports, enhance job creation, strengthen national security, promote and protect U.S. commercial interests abroad, and deliver customized solutions to ensure that U.S. businesses compete and win in the global marketplace. Contact us to find your local International Trade Specialist.
Civil Aviation
India boasts the world’s third-largest civil aviation market and one of the fastest-growing markets in the world. According to the Directorate General of Civil Aviation, domestic airlines carried 150 million passengers in 2023, a 22% jump from 2022, compared to 123 million in 2022, registering an annual growth of 22 percent. By 2030, India expects over 500 million air travelers, potentially becoming the global leader by 2047. India is projected to have more than 500 million domestic and international air travelers by 2030 and has the potential to become the world’s leading aviation market by 2047. The number of airports in India has increased to 149 in 2023 from 74 in 2014 and is expected to reach 220 by 2025. To support the aviation industry, many Indian states have reduced the value-added tax on aviation turbine fuel by up to 4%.
Since the launch of the regional connectivity scheme in 2016, India has operationalized 519 unserved/underserved routes and connected 76 airports from different regions to promote balanced regional growth and make flying affordable for the masses. India has a wide network of international flights through Air Service Agreements with 116 countries. India aspires to become the global hub for maintenance, repair, and overhaul (MRO) services. Approximately 90% of India’s MRO activity occurs outside of India, predominantly in Sri Lanka, Singapore, and Malaysia. In 2023, Indian leading airlines Tata-owned Air India and IndiGo placed orders for 470 airplanes (220 from Boeing and 250 from Airbus) and 500 Airbus A320 aircraft respectively. In 2024, Akasa Air placed an order for 150 Boeing 737 MAX aircraft. Given the commitment of the Indian government and airlines, India has huge potential for American companies to export products and services in the areas of airport infrastructure, avionics, training, maintenance, repair, and overhaul services.
Defense Sector:
India enjoys a unique status as a Major Defense Partner of the United States, unlocking opportunities to procure sensitive defense technologies. As bilateral ties between the United States and India strengthen, defense cooperation is likely to increase in parallel. Defense is one of the most promising sectors for U.S. exports to India thanks to the United States’ technological edge and India’s security needs. India has the third-largest armed forces in the world and continues to spend billions of dollars on defense articles every year. The government of India has budgeted $58 billion for defense expenditure, out of which $20 billion is earmarked for capital expenditures such as the modernization of military forces by procuring aircraft and aero engines, land defense systems, medium and heavy-duty vehicles, and the upgrading of ordnance factories, research, and development. India has committed to becoming self-reliant by manufacturing defense equipment locally and exporting it globally. As part of its indigenization drive, the Indian defense sector’s production has crossed $12 billion in 2023 and continues to grow further, creating an opportunity for American companies to supply components, software, equipment, and machinery.
We are in many U.S. Embassies & Consulates worldwide as well as major cities across the United States. Contact us to learn more about how we can assist companies to increase the exports of their U.S. technologies, products and services.
Contact Information
Sudhir KESHARWANI, Commercial Specialist
U.S. Embassy – India
Email: Sudhir.Kesharwani@trade.gov
The I&A Aerospace team serves as Commerce’s representative to the Department of Transportation-led Advanced Air Mobility Working Group (AAMWG). The AAMWG is drafting a strategy to plan for and coordinate efforts to integrate AAMs into the national airspace system to grow transport options, amplify economic activity, advance sustainability, and support emergency preparedness.
Recommendations fall into the following categories: air traffic, infrastructure development, security requirements, community roles, and automation strategy. Over the past year, the Office of Transport and Machinery (OTM) in ITA’s Industry and Analysis division (I&A) has advised the group on export control and supply chain considerations to support U.S. industry’s global competitiveness in this burgeoning market.
The current report is pre-decisional/deliberative and will be refined over the next few months into the final National Strategy on Advanced Air Mobility, and eventually, an accompanying report to Congress. Following the report’s final release – expected no later than the end of the current administration – the Global Aerospace Team can expect increased momentum for AAM certification and related infrastructure development among U.S. companies. OTM expects industry to use the report to galvanize federal investment in research and development that can support the integration of these new technologies, such as air traffic services, workforce and training, information management, and expanding screening and vetting systems. For more information, please contact OTM’s AAM lead, Stefanie Merchant.
We engage with events and trade shows to accelerate the global reach of the events. Providing participants the assurance that the U.S. Department of Commerce not only recognizes the event but is also committed to using the event to maximize opportunities for U.S. exporters.
| Aerospace & Defense Supplier SummitMarch 12-14, 2024 Questions: Diane Mooney or AJ Anderson U.S. Commercial Service, TEMS |
| Webinar: Philippine Defense OpportunitiesMarch 21, 2024, 8:00PM New York / 5:00PM Seattle PHILIPPINES DEFENSE INDUSTRY WEBINAR, OPPORTUNITIES FOR COLLABORATION Please join us to learn about business opportunities in the Philippines. This webinar will provide you with in-depth insights on current and future requirements, where to find procurement opportunities, and how to bid on available contracts. Speakers: Questions: Thess Sula or Paul Matino |
| Xponential 2024San Diego, California The U.S. Commercial Service is pleased to offer U.S. exhibitors at Xponential additional no-cost services to help you increase your presence in international markets. Questions: Christopher Munoz U.S. Commercial Service, TEPP |
| ILA Berlin 2024Berlin, Germany Questions: Moritz Holst U.S. Commercial Service, TEMS |
| Eurosatory 2024Paris, France Questions: Frantz Eyssallenne U.S. Commercial Service, TEPP |
| Indian Ocean Defense and Security Conference 2024Perth, Australia Questions: Doug Hartley U.S. Commercial Service, TEMS |
| Taiwan Uncrewed Aircraft Systems (UAS) and Counter-UAS (C-UAS) Business Development MissionTaipei, Taiwan Join the U.S. Department of Commerce’s Taiwan Uncrewed Aircraft Systems (UAS) and Counter-UAS (C-UAS) Business Development Mission to Taiwan. The objective of this mission is to advance U.S. national interests and focus on meeting Taiwan market demand for U.S. UAS and C-UAS commercial and defense solutions. Participating U.S. firms will explore market development opportunities, gain market insights, make industry contacts, solidify business strategies, and advance specific projects with the goal of increasing U.S. exports and services in the aerospace and defense sectors. More information available here. Questions: Luke Yanos U.S. Department of Commerce, International Trade Administration, U.S. Commercial Service, Trade Mission |
Tools to Win! Trade Shows and Statistics
Our mission is to increase U.S. exports, enhance job creation, strengthen national security, promote and protect U.S. commercial interests abroad, and deliver customized solutions to ensure that U.S. businesses compete and win in the global marketplace. Export assistance is provided to U.S. companies who manufacture goods and/or provide services of at least 51% U.S. content.
We assist companies in the following areas:
— International Trade Counseling,
— Business Matchmaking,
— Market Intelligence,
— Customized Services, and much more.
Contact Us to find your local International Trade Specialist.
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Please direct newsletter questions to Erica Ramirez at Erica.Ramirez@trade.gov.
