INDIA’S AEROSPACE LEAP FUELS MACHINE TOOL GROWTH

India’s aerospace industry’s rapid progress is creating a wide array of opportunities for allied industries—most notably, the machine tool sector, which is set to play a key role in powering India’s aerospace and defence growth.

The Indian aerospace sector is on a promising trajectory, marked by ambition and progress. Advances in indigenous fighter jet production, next-generation drone systems, and a historic human spaceflight reflect India’s technological strength and growing strategic independence. Backed by the Government and major public as well as private enterprises, the sector’s momentum spans both civil and defence domains. This momentum is evident in the MRO (maintenance, repair, and overhaul) segment, which is expected to grow from US$ 800 million in 2018 to over US$ 2.4 billion by 2028, according to the Government of India.

Defence Production at Record Levels

Over the next 15 years, India’s domestic aerospace manufacturing market is expected to grow into a US$ 10 billion industry, including structural components, avionics systems, and related products, according to the Ministry of Civil Aviation. India’s growing self-reliance and global competitiveness in aerospace were evident earlier this year, highlighting its rising strategic stature. Defence production has also expanded rapidly over the past decade, reaching `1.27 lakh crore in FY 2023–24, while defence exports hit an all-time high of `23,622 crore in FY 2024–25, as per Ministry of Defence estimates. The country now aims to achieve `3 lakh crore in production and `50,000 crore in exports by 2029.

As India’s aerospace and defence ambitions reach new heights, it is an opportune time for the Indian machine tool industry to make its next moves.

The Machine Tool Sector: Rising to the Challenge

The Indian machine tool industry has maintained its upward trajectory, production in FY 2024-25 has increased by 7 percent to approximately US$ 1.7 billion, while consumption has grown by 17 percent to around US$ 3.7 billion, signalling a positive outlook. Currently ranked 9^th in machine tool production and 4^th in consumption for 2024, according to Gardner Intelligence’s World Machine Tool Survey 2025, the Indian machine tool industry is forecast to expand by about 10-11 percent and increase its domestic market share, gradually reducing its reliance on imports.

Unlocking the Aerospace Opportunity

According to an internal study by the Indian Machine Tool Manufacturers’ Association (IMTMA), the Indian machine tool industry caters to only 4 percent of the requirements for the Aerospace and Defence sector, which has a market size of US$ 28.7 billion. The sector is projected to grow at a CAGR of 7.1 percent from 2024 to 2031, compared to the current growth rate of 0.14 percent, reaching a market value of US$ 46 billion. A surge in demand for high-precision components such as turbine blades, engine parts, and airframe structures is expected, leading to increased demand for CNC machining, robotics, and advanced materials processing.

Every breakthrough in the Aerospace sector, from large-scale deployment of fighter jets to human spaceflight programmes, UAV proliferation to rocket launches, fuels significant demand for precision machine tools. The Government has introduced numerous reform measures to support drone manufacturing and operations. As the government, private sector, and startups collaborate in this field, India is well-placed to become the world's drone hub. Domestic machine tool manufacturers have a clear pathway to innovate, expand, and meet strict tolerance standards for airframes, satellite components, engines, and UAV assemblies, thereby enhancing India’s strategic autonomy in the sector.

Machines that Power AatmaNirbhar Bharat

As the skies open wider with space missions, aircraft, and rocket launches, the Machine Tool industry is expected to stand as the enabling force powering this ascent. By meeting precise aerospace standards, Indian machine tool manufacturers can secure their position at the center of India’s self-reliance journey, ensuring that the dream of AatmaNirbhar Bharat takes flight on machines that are made in India.

MTX Connect Jamshedpur 2025

Indian Machine Tool Manufacturers’ Association (IMTMA), in partnership with the Confederation of Indian Industry (CII), is organizing the third edition of MTX Connect, a distinctive two-day business-to-business (B2B) event themed ‘Where Technology Meets Opportunity in Eastern India’ on November 3–4, 2025 in Jamshedpur, Jharkhand.

Jamshedpur, also known as the ‘Steel City of India’, is a key manufacturing center in eastern India with a significant presence of steel and related industries. It is strategically situated with plenty of natural resources and a strong infrastructure. Jamshedpur also hosts a healthy number of automobile manufacturers and power-generating companies, along with numerous small and medium-sized enterprises that support larger industries.

“MTX Connect Jamshedpur will have machine tools, digital manufacturing, laser technologies, tooling, and metrology as its focus. Visitors from Aerospace and Defence, Auto and Auto Components, Construction Equipment, Engineering Goods, Textile Machinery, Renewable Energy, Agriculture, and other sectors will attend the expo,” shares Jibak Dasgupta, Director General & CEO, IMTMA.

“At a time when India’s economic growth remains steady amidst a volatile global environment, an initiative such as this will help to boost the Indian machine tool industry’s ambition to fuel India’s manufacturing growth domestically” Dasgupta adds.

Source: IMTMA