India’s manufacturing purchasing managers' index (PMI) grew to 56.3 in February 2025, down from 57.7 in January. This softening is attributed to a decline in new orders and production momentum; however, employment generation continued to rise at a healthy pace, and inflation eased slightly. The real GDP for the third quarter of fiscal year 2024-25 grew 6.2%, compared to 5.4% in the second quarter. The industrial production index also saw a year-over-year growth of 3.2% in December 2024, down from 5% in November 2024.
The Indian automobile retail sector experienced a strong start to 2025, with overall sales in January increasing by 6.6% year over year. The car segment grew by 15.3%, the commercial vehicle segment by 8.22%, and the two-wheeler segment by 4.15%. Sales of electric vehicles (EVs) also rose significantly, growing by 17.1% year over year to reach 169,931 units in January 2025.
According to a recent report from the India Electronics and Semiconductor Association (IESA), India’s semiconductor market is projected to grow at a CAGR of 13%, expanding from $52 billion in 2024 to $104 billion by 2030. This growth is driven by major sectors such as mobile handsets, information technology, telecommunications, consumer electronics, automotive, aerospace, and defense.
According to the latest report by CRISIL, the Indian aircraft maintenance, repair, and overhaul (MRO) industry is expected to experience a 50% increase in revenue, reaching $522 million by 2026. This growth will be fueled by an expanding domestic fleet of operators, which is anticipated to grow by 20%-25% in the next fiscal year. The government’s reduction of the goods and services tax (GST) on aircraft components and services has also enhanced the competitiveness of Indian MROs compared to global players.
Asia’s largest air show, Aero India, concluded its 15th biennial edition in Bengaluru last week. There were 930 exhibiting companies participating in a significantly larger area compared to the 800 exhibitors at the previous show in 2023. The static display increased by 43%, showcasing 34 aircraft. Companies from 80 countries attended the five-day event, which featured high-level delegations from 43 nations. Over 100 OEMs participated in a CEO roundtable, including 55 representatives from 19 countries. Many companies, both global and Indian, highlighted their infrastructure and aerospace manufacturing capabilities. Additionally, numerous OEMs showcased their latest defense equipment, including Lockheed Martin's fifth-generation F-35 Lightning II fighter aircraft, the Russian Su-57, and a full-scale model of India's Advanced Medium Combat Aircraft, a 5.5-generation stealth aircraft equipped with cutting-edge features. The presence of global companies at the air show underscores growing international confidence in India's aerospace and defense capabilities.
Southeast Asia’s largest machine tool exposition, the IMTEX Metal Cutting Show, took place Jan. 23-29, 2025. The event was a resounding success, attracting over 133,000 business visitors from 70 countries. According to organizers, exhibiting companies achieved nearly $400 million in sales and generated new leads worth over $4 billion over the show’s seven days.
A few recently announced projects and investment news items are listed below for your reference.
At the recently concluded Aero India show in Bengaluru, Rolls-Royce announced a significant partnership with Hyderabad-based Azad Engineering to manufacture complex components for military aircraft engines. This partnership will enhance India’s role in the global supply chain for advanced aero engines.
Rolls-Royce Marine and Triveni Engineering Industries have signed an MOU to collaborate on 4-MW marine gas turbine generators (GTG) for the Indian market. The partnership aims to establish end-to-end capabilities in India, covering the design, development, manufacturing, and support of marine GTGs. Godrej & Boyce’s Aerospace division has signed an MOU with the Aeronautical Development Agency to produce flight control actuators for India’s proposed Advanced Medium Combat Aircraft program. The MOU encompasses Godrej setting up a precision manufacturing facility, procuring aerospace-grade materials, performing assembly and testing, and creating test rigs for the qualification process.
Tata Advanced Systems Limited (TASL) is expanding its business in Karnataka, setting up an MRO facility for Lockheed Martin’s C-130J fleet, which is supplied to the Indian air force.
Bikar Metals India opened a new production facility in the Aequs Special Economic Zone in Belagavi. The cutting-edge facility highlights Bikar’s commitment to assisting India’s expanding aerospace, defense, and precision engineering sectors.
Lam Research has signed an MOU with the Karnataka government and plans to invest over $1.2 billion to develop essential tools for semiconductor manufacturing. The tools play a crucial role in wafer processing and wiring semiconductor devices.
Titan Engineering & Automation Ltd. (TEAL) is set to open a new electronics manufacturing plant in Chennai and expand its operations in Hosur to enhance its ability to manufacture electronic components and provide support closer to its customers.
Volvo Group is investing to expand its manufacturing operations in Hosakote, Bengaluru. The expansion will increase the existing annual production capacity of trucks and buses from 3,000 to 20,000 units.
Jindal Nuclear Power has announced plans to develop 18 GWe of nuclear power capacity in India over the next 20 years. The project entails a long-term investment of around $21 billion, representing a significant private-sector push into nuclear energy.
For more information, please contact Arun Mahajan at AMahajan@AMTonline.org.
