Aerospace and defence sector holds strong growth potential in Telugu States; Hyderabad emerges as key national hub

Bengaluru-based JB International - Aerospace Engineering & Manufacturing CEO Jayanthi Bhagatha is an accomplished professional with extensive experience in senior executive roles within the aerospace industry.

She has a proven track record of driving revenue growth, securing strategic partnerships, and facilitating the entry of international Original Equipment Manufacturers (OEMs) and Tier-1 suppliers into the domestic market. Recognised for her expertise in aerospace engineering and manufacturing, Jayanthi has played a pivotal role in securing multi-million-dollar deals and fostering industry collaborations.

Her core areas of specialisation include business development, joint ventures, corporate strategy implementation, total P&L management, corporate communications, operational planning and management, contract negotiation, sales strategy deployment, offshore development centre (ODC) management, dispute resolution, new product development, and supply chain management.

Jayanthi brings a comprehensive perspective from both the solutions and client sides, helping organisations design and implement strategies that drive sustainable profitability. Her meticulous attention to detail ensures tailored solutions that she oversees from inception to execution.

In an exclusive interview to Bizz Buzz, she said the future of aerospace manufacturing in South India is inclusive. "Over the past decade, Andhra Pradesh and Telangana have quietly but confidently emerged as one of India’s leading aerospace and defence hubs.

What was once an emerging sector has today become a strategic pillar of regional growth, national security, and global competitiveness. At the centre of this transformation is Hyderabad — now recognised as a thriving aerospace cluster where advanced engineering, manufacturing excellence, and innovation converge. Alongside it, Visakhapatnam is steadily building its own industrial momentum, strengthening the broader ecosystem across South India," she stated

How do you see the future of the aerospace sector in the Telugu States of Telangana and Andhra Pradesh?

The aerospace and defence sector in the Telugu States has a very promising future. Telangana, particularly Hyderabad, has already established itself as one of India’s most important aerospace ecosystems.

The presence of DRDO laboratories, defence public sector undertakings, global OEMs, and a large network of Tier-1, Tier-2 and MSME suppliers has created a strong foundation for sustained growth.

Hyderabad today is not only a centre for aerospace manufacturing but also for engineering design, advanced research and precision manufacturing. This combination of capabilities gives the region a strong competitive advantage in the global aerospace supply chain.

At the same time, Andhra Pradesh is emerging as a complementary hub with immense potential. Visakhapatnam, with its strategic coastal location, strong port connectivity and established naval presence, offers significant opportunities for defence manufacturing and maritime aerospace activities.

India’s push towards “Make in India” and defence indigenisation is opening up significant opportunities across the aerospace value chain. As the industry grows, the importance of a strong and reliable supply chain ecosystem will become even more critical.

From an industry perspective, our company JBI Aerospace is closely observing the opportunities emerging in the region. Telangana in particular has demonstrated strong intent in building an aerospace ecosystem, and we believe that companies across the supply chain can play an important role in supporting its long-term growth.

Visakhapatnam and Hyderabad have already emerged as strategic defence hubs. There is a proposal to set up a defence manufacturing cluster near Visakhapatnam. Do you think enough confidence-building measures are initiated to capture huge opportunities in the fast-developing sector?

The proposal to establish a defence manufacturing cluster near Visakhapatnam is a very strategic and timely initiative. Visakhapatnam already has a strong maritime and defence ecosystem supported by the presence of the Eastern Naval Command, shipbuilding infrastructure and a growing industrial base.

If developed with the right vision, this cluster can attract investments across defence manufacturing, aerospace components, shipbuilding technologies and advanced engineering industries.

Over the past few years, the central government has taken several important policy steps to encourage defence indigenisation and private sector participation. These measures have begun to create a more favourable environment for industry growth.

However, for such clusters to truly succeed, companies look for a combination of policy stability, infrastructure readiness, faster approvals and strong industry collaboration. Defence manufacturing is a long-term investment sector, and confidence in the ecosystem plays a major role in attracting industry participation.

Equally important is the ability of clusters to build strong partnerships across manufacturers, engineering firms and supply chain players. We, JBI Aerospace, would be keen to collaborate with industry participants in such ecosystems to jointly strengthen India’s aerospace and defence manufacturing capabilities.

What more has to be done to transform Hyderabad into a thriving aerospace cluster where advanced engineering, manufacturing excellence and innovation converge?

Hyderabad has already made remarkable progress in establishing itself as a leading aerospace and defence hub in India. The presence of advanced research institutions, global aerospace companies and a strong supplier network has created a robust ecosystem.

The next phase of growth will depend on strengthening capabilities in emerging technologies such as advanced composites, additive manufacturing, automation, digital engineering and next-generation materials.

Another important factor is deeper collaboration between industry, academia and research institutions. Universities and engineering institutes must align their curriculum and research focus with the evolving needs of the aerospace industry.

From a supply chain perspective, access to specialised aerospace materials, certified engineering inputs and advanced manufacturing technologies will be crucial for the next stage of growth.

At JBI Aerospace, we see a growing demand from aerospace manufacturers for reliable and globally compliant supply chain partners. As the ecosystem expands, strengthening these capabilities will be critical.

Having spent many years in aerospace engineering and business transformation — including working on turning around large engineering businesses in India from loss-making operations to profitable growth — I strongly believe that industry expertise can play an important role in shaping policies that accelerate aerospace development.

Though there are windows of opportunities, how is the industry able to meet the demand for highly-skilled and senior management cadre manpower?

Talent development remains one of the most important challenges for the aerospace industry. While India produces a large number of engineering graduates every year, the aerospace sector requires specialised expertise in areas such as aerostructures, avionics, materials science, precision manufacturing and systems engineering.

To address this gap, many companies are increasingly investing in training programmes, industry-academia partnerships and apprenticeship initiatives.

However, the bigger challenge lies in developing experienced leadership talent. Aerospace projects are complex, long-term and globally integrated. They require leaders who combine strong engineering expertise with strategic management capabilities and international exposure.

Companies across the ecosystem, including supply chain partners like us (JBI Aerospace) are also investing in building technical capabilities and specialised expertise within their teams. Developing skilled manpower across the entire aerospace value chain will be essential if India wants to scale its aerospace manufacturing ambitions in the coming decade.

How big is India's aerospace and manufacturing sector and what are the projections for the near future?

India’s aerospace and defence sector has grown significantly over the past decade and is gradually becoming an important part of the global aerospace supply chain.

The industry today includes defence public sector undertakings, private aerospace companies, global OEM partnerships and a rapidly growing base of MSMEs that support manufacturing and engineering activities.

At the same time, India is one of the fastest-growing aviation markets in the world. Rising air passenger traffic is driving demand for aircraft procurement, airport infrastructure, maintenance and aerospace components.

Industry estimates suggest that India’s aerospace and defence sector could grow substantially over the next decade and potentially reach $70–80 billion or more if the current policy momentum continues.

This growth will also create significant opportunities for companies across the aerospace value chain, including engineering service providers, advanced materials suppliers and specialised manufacturing partners.

As the industry is expanding, having a strong domestic supply chain assumes importance as attracting global OEMs.

With extensive experience in aerospace engineering, what is your opinion on the Government of India's focus to bring more international OEMs and private players to Tier-1 and Tier-2 cities?

The Government of India’s strategy to attract global OEMs and encourage private sector participation across Tier-1 and Tier-2 cities is a very progressive approach. Aerospace manufacturing thrives in cluster-based ecosystems where manufacturers, suppliers, research institutions and service providers operate in close collaboration.

Expanding aerospace activities beyond traditional metropolitan centres can unlock new industrial regions, generate high-quality employment and accelerate technology transfer.

Many Tier-2 cities already have strong engineering talent and industrial capabilities. With the right policy incentives and infrastructure support, they can evolve into specialised aerospace manufacturing hubs.

The government’s focus on strengthening MRO capabilities and airport infrastructure is also extremely important. Developing domestic MRO capabilities will reduce dependence on overseas facilities and create significant economic value within the country.

For companies like us- JBI Aerospace, the expansion of aerospace manufacturing across multiple regions will also help strengthen the national aerospace supply chain.

What challenges are currently faced by players in the aerospace sector and what support do they expect from authorities?

While the growth outlook for the aerospace sector is very positive, there are still several challenges that industry players face.

One of the primary challenges is the high capital investment required for advanced manufacturing technologies, certification processes and quality compliance systems. For many MSMEs that form the backbone of the aerospace supply chain, access to affordable finance can be a constraint.

Another important challenge is the time required for testing, certification and regulatory approvals, which are essential in aerospace but can sometimes delay project timelines.

Companies also evaluate different states based on policy support, infrastructure readiness and long-term industry vision. Regions that provide stable policies, faster approvals and strong ecosystem support naturally attract greater industry participation.

At JBI Aerospace, we are continuously evaluating opportunities to expand our presence in regions where the ecosystem is supportive and aligned with long-term aerospace growth.

Telangana has already demonstrated strong intent in building a world-class aerospace ecosystem, and if the right collaborative environment is created, companies like ours would certainly be interested in contributing to the growth of the sector in the State.