Karnataka produces more than a quarter of India’s aircraft and spacecraft, it is the base for all global players in this industry. Excellent support from the government has come through in the form of centers, including Hindustan Aeronautics Limited (HAL), National Aerospace Laboratories (NAL), Aeronautical Development Agency (ADA) and Gas Turbine Research Establishment (GTRE). The State continues to draw huge investments in this Sector as it gears up to meet the rising global demand.

The history and background of India’s aerospace industry owes much to the state of Karnataka; home to India’s aerospace industry, the state is all set to reap dividends of the potential in this sector. Starting from 1940, when India’s first private aircraft factory Hindustan Aircraft Ltd. began its operations in Bangalore, the state has created a conducive environment that has nurtured the growth of the aerospace industry. The hub of manufacturing, research and development, the state produces more than a quarter of the country’s aircraft and spacecraft.

HAL, has 19 production units and 9 research and development centres in 7 locations across India, of which, 8 production units and 4 R&D centres are located in Bangalore. Ranked 40th in Flight International’s list of the World’s Top 100 aerospace companies in 2008, HAL has a total turnover of Rs. 10,400 crore. It has manufactured 12 types of aircraft with in-house R&D and 14 types under licence. While it has built more than 3,550 aircraft and 3,600 engines, over 8150 aircraft and 27,300 engines have been overhauled at its facilities.

Bharat Electronics Ltd. is another public sector firm working in this industry, which has entered into MOUs with international companies like Lockheed Martin, Boeing, EADs etc.

NAL was set up in 1959 under CSIR in Bangalore. The aeronautical lab consolidated its position as a major player with the approval of India’s Light Combat Aircraft project in 1983. NAL, the only civilian aerospace laboratory in the country, is a leader in civil aviation design.

Though in the public sector, these aerospace centres have grown in stature, registering international standards of technical excellence and capabilities. They work with many firms in the private sector to raise technological skills, technical and managerial processes etc. Private sector suppliers to the defence sector and the public sector firms were exposed to high standards, raising their capabilities as well. While industrial liberalisation has been underway since 1991, reforms have been gradually spreading through to all sectors and the defence sector was opened to the private sector in 2001. For instance, Air Works India Engineering Private Ltd, established in 1951, became the first DGCA-approved independent Airline MRO in November 2008 for its facility near Bangalore.