India Helicopter Market
The helicopter industry in India is a relatively untapped, highly regulated market. There is potential for exponential growth which rides on a forecast increase in the demand for helicopter emergency medical services (HEMS), tourism, and the development of new airfields in smaller cities. The urgency to replace and upgrade the Indian armed forces’ aging combat helicopter fleet presents a significant opportunity for the defense segment.
There are roughly 250 civilian helicopters currently flying over Indian skies with roughly 1000 helipads to receive them. These low figures are due to tight government regulations concerning helicopters. India’s Ministry of Civil Aviation (MoCA) has shown interest in rapidly developing the helicopter sector with specific government programs supporting privatization of air travel and government financing for helicopter procurement. Due to the absence of a strong indigenous helicopter manufacturing ecosystem, growth is heavily reliant on foreign technology transfer, expertise, and consultancy.
Civilian Segment: A major factor restricting growth of the industry is the Indian government classification of helicopters generally preventing them from landing outside of regulated airfields. The MoCA is currently working on simplifying and streamlining flight permissions. Demand drivers include replacement for the country’s aging helicopter fleet, VIP charter flights, usage of helicopters to transfer pilgrims to-and-from shrines in mountainous regions, and the need for rotor-wing transfer of personnel and emergency medical support for major infrastructure and energy projects. Sector growth also drives opportunities for helicopter flight schools, fleet and flight training programs, and maintenance and repair operations.
Defense Segment: The defense segment is large, with nearly 1,000 helicopters, mostly of Russian origin and others built in India by Hindustan Aeronautics Limited under licensing from French firm Aérospatiale. They are used for emergency services, disaster management, and patrol. They feature high-altitude capabilities required by the Indian armed forces. These aircraft are reaching their service life and will soon be retired. Historically, government preferences favor acquisition from HAL, however military purchasing behavior may be changing. India’s U.S. fleet of helicopters now includes the MH-60R Seahawk, AH-64E Apache, and CH-47 Chinook range of helicopters, which perform anti-submarine, attack aviation/close air support, and heavy lift missions. U.S. OEMs may be able to serve India’s defense equipment market by partnering with Indian companies to establish production in India, which leverages current “make in India” policies as well as the Roadmap for U.S.-India Defense Industrial Cooperation. As example, U.S. AH-64 Apache airframes and Sikorsky S-92 helicopters are currently manufactured locally in India. Any entity entering the Indian defense market should analyze the Defense Acquisition Procedure 2020 (DAP 2020), implemented to prioritize the indigenous production of defense equipment over foreign procurement.
All the major aerospace players are taking an aggressive stance with the Indian market. European aerospace giant Airbus, for example, is playing an active role in developing new market segments in India such as HEMS, airborne law enforcement (ALE), and urban air mobility (UAM). Airbus Helicopters recently announced it is partnering with the Tata Group to produce Airbus’ best-selling H125 helicopter for India and for export to neighboring countries. Domestic competition also remains stiff, with the Indian Ministry of Defense (MoD) driving further indigenous manufacturing with a recent contract to acquire 34 Advanced Light Helicopters from HAL.
The experienced U.S. Commercial Service team in India can help your market entry or expansion in the Indian subcontinent. For further information regarding opportunities in this sector, please reach out to your local U.S. office or contact the U.S. Commercial Service in India.