The announcement was made alongside the release of a report by Ernst & Young (EY), titled ‘Powering Progress: GE Aerospace’s Economic Impact in India’, which assesses the company’s economic contribution to India’s commercial aviation, defence, manufacturing and engineering sectors over four decades.
The report was released at India Taking Flight – Aviation, Innovation and the Road to Viksit Bharat 2047, an event hosted by GE Aerospace and attended by industry leaders.
According to the report, GE Aerospace spent approximately $200 million on its Indian supply chain in 2025. The company plans to double this expenditure by 2030 to meet rising demand and expand its network of domestic suppliers, including small and medium-sized enterprises.
India’s commercial aviation sector continues to witness significant growth, with domestic airlines generating approximately $19 billion in revenue in the financial year 2025-26 (FY26). GE Aerospace’s advanced engine technology and operational reliability contribute to the efficiency and connectivity of India’s aviation ecosystem, which supports an estimated 370,000 direct jobs.
As of December 2025, commercial engines manufactured by GE Aerospace and its partners powered the majority of commercial airline operations in India, with a fleet of more than 1,400 engines. The report states that these engines have helped Indian carriers achieve a passenger load factor of 88.2%, the highest globally, while aircraft utilisation rates have reached 12 to 14 hours per day, significantly exceeding global figures.
Commenting on the announcement, Vikram Rai, CEO, South Asia, GE Aerospace, said India’s commercial aviation growth was among the fastest in the world and highlighted the company’s contribution beyond engine sales.
He said the company’s presence in India extends from component manufacturing in Pune to engineering and innovation in Bengaluru, while its partnerships with Indian customers and suppliers are helping build the next generation of the country’s aerospace industry.Rai added that increasing supplier spending would strengthen the domestic supply chain and help meet growing demand as India works towards its Viksit Bharat ambitions.
The report highlights the significant growth expected in India’s aviation industry over the coming decades. According to Government of India estimates cited in the report, annual domestic passenger traffic is projected to reach 1.1 billion by 2040, compared with 340 million in FY26.
The country’s airport network is also expected to expand from 163 airports to more than 350 by 2047, creating greater demand for aircraft, engines, maintenance services and aviation infrastructure.
To meet the projected demand, India and South Asia will require approximately 3,300 additional aircraft, equivalent to 6,600 additional engines, by 2044.
In July 2026, IndiGo announced a memorandum of understanding with CFM International for an order of more than 1,000 LEAP-1A engines to power 510 Airbus A320neo Family aircraft. The agreement represents the largest single order ever placed for LEAP engines and a record for CFM International. It also includes support for establishing IndiGo’s upcoming engine maintenance, repair and overhaul (MRO) facility.
GE Aerospace and its partner engines are expected to power most of the approximately 1,500 new aircraft already on order with Indian carriers. The report estimates that this presents an opportunity worth more than $5.5 billion for India’s MRO industry, potentially strengthening the country’s position as a regional hub for aircraft engine maintenance and repair.
GE Aerospace’s manufacturing operations in India are centred around its flagship facility in Pune, which was established with an initial investment of $200 million. Since 2024, the company has invested nearly $55 million in expanding automation, improving precision-manufacturing capabilities and advancing workforce development at the facility.
These investments have strengthened its manufacturing capabilities and supported a wider domestic supply chain comprising 17 major Indian partners, including small and medium-sized enterprises.
The company’s plan to nearly double supplier spending by 2030 is expected to further expand opportunities for Indian manufacturers and suppliers as demand for aircraft engines and related components increases. Workforce development remains another key area of focus. Since 2015, approximately 5,000 production associates have graduated from the Pune facility’s apprenticeship programme, which enrols between 400 and 500 new apprentices every year.
The programme aims to develop manufacturing skills and build a workforce capable of supporting the growing requirements of the aerospace industry.GE Aerospace also highlighted its long-standing partnership with Hindustan Aeronautics Limited (HAL), which began in 1986 and remains an important part of India’s efforts to strengthen domestic defence manufacturing.
The partnership covers LM2500 naval engines and F404-IN20 engines that power India’s Tejas Mk1 light combat aircraft. According to the company, the F404 platform has more than 4,000 engines deployed across 16 countries.
In 2023, GE Aerospace signed a memorandum of understanding covering the potential domestic manufacture of F414 engines for the Tejas Mk2 programme. However, the proposed manufacturing arrangement remains subject to final agreements and necessary approvals.
The company has also signed a five-year Performance Based Logistics contract with the Indian Air Force for Apache helicopter engines. In a separate agreement, it has committed to establishing an in-country depot facility for F404-IN20 engines.
These initiatives are aimed at strengthening domestic maintenance and support capabilities, improving the availability of defence platforms and contributing to India’s broader defence self-reliance objectives.
GE Aerospace’s Bengaluru Technology Centre, established in 2000 with an investment of $200 million, has emerged as a key centre for research, engineering and technological innovation.
The facility was among the first research and engineering centres of its kind established outside the United States. Since its inception, it has secured more than 1,000 aviation patents and contributed to the design, development and certification of the GE9X engine, described by the company as the world’s most powerful jet engine.
Engineers at the Bengaluru centre hold key design responsibilities for the GE90, GP7200, GEnx and GE9X engines. They are also playing a significant role in the CFM RISE programme, which aims to improve fuel efficiency by 20% while meeting customer expectations for durability.
The centre’s Digital Technology team also supports GE Aerospace’s global supply chain, MRO and sales operations through the application of artificial intelligence.
In addition to its engineering work, the company is investing in the development of India’s aerospace talent through academic partnerships and research programmes. These include a flagship joint innovation programme with IIT Madras, which has produced a locally designed and manufactured Micro Turbomachine.
The initiative reflects the growing role of Indian engineering institutions and research centres in developing technologies for the global aerospace industry.
The EY report brings together GE Aerospace’s contributions across manufacturing, engineering, commercial aviation and defence over the past four decades.
The company’s investments in Pune and Bengaluru, its partnerships with Indian suppliers and HAL, and its workforce development initiatives form part of its strategy to expand its presence in the country.
With India’s aviation sector expected to grow substantially over the next two decades, the planned increase in domestic supplier spending is intended to strengthen the local manufacturing ecosystem, expand engineering capabilities and support the rising demand for aircraft engines and maintenance services.
The announcement comes as India seeks to expand its aviation infrastructure, strengthen domestic manufacturing and advance its Viksit Bharat 2047 vision. GE Aerospace’s proposed increase in supplier spending is expected to create further opportunities for Indian manufacturers and engineering talent while reinforcing the country’s role in the global aerospace supply chain.