BENGALURU: India’s aerospace and defence manufacturing sector could face execution challenges as growing order books put pressure on delivery capacity, with some existing orders potentially taking up to a decade to complete, according to a study released by PwC India.
The report, titled Accelerating aerospace and defence manufacturing through operational excellence and supply chain resilience, said the sector is entering a period of growth supported by strong demand, rising exports and government policy support. However, it warned that execution capacity could become a constraint as manufacturers work through large order backlogs.
India exports defence products to nearly 100 countries and domestic defence production reached a record Rs 1.54 lakh crore in FY25, the study said.
For major manufacturers, order book-to-revenue multiples range from 1.71 times to 6.88 times, while execution backlogs span between two and seven years. In some segments, existing orders could take between five and ten years to clear.
“The real test for India’s aerospace and defence sector is no longer whether demand exists, but whether the ecosystem can execute with speed, precision, and resilience,” said Dinesh Arora, Partner and Leader Advisory at PwC India.
“As order books expand, companies will need to move beyond incremental capacity addition and fundamentally strengthen planning, shopfloor productivity, supplier coordination, and digital integration,” he said.
The study said India’s aerospace and defence sector is expected to play a role in the expansion of the country’s manufacturing base as India pursues its goal of becoming a $30 trillion economy by 2047.
To address the gap between demand and execution capacity, PwC identified six areas requiring attention in supply chain efficiency, operational excellence, planning and governance, research and development, workforce productivity, and digital integration.
According to the report, improvements in these areas could help manufacturers increase productivity, reduce rework, strengthen supplier networks and improve delivery performance.