The country's first indigenous aircraft prototype, developed by the $11.2 billion Mahindra & Mahindra Group, will be launched soon, a top official said.
This will make India one of the select few countries that manufacture aircraft.
"Yes, our very first prototype that is designed in India and manufactured in Australia will be coming out soon... We are not rushing it," said Karthik Krishnamurthy, chief technology officer of Mahindra Aerospace, the aviation division of the Mahindra Group.
He told PTI that Mahindra and Mahindra had entered into a joint venture with National Aeronautics Laboratory to manufacture aircraft and aero components. It is setting up a facility in Bangalore with an investment of over $60 million.
The company had in January this year acquired a two decades old Australian aviation company, GippsAero, headquartered in Melbourne, to manufacture aircraft, for Rs 175 crore.
With the association of NAL and GippsAero, Mahindra would soon manufacture aircraft at the GippsAero facility in Melbourne, while design would be done in Bangalore India, he said.
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Krishnamurthy said utility aircraft of five, eight, 10, 18 and 22-seater capacity would be manufactured.
"The first prototype will be a five-seater capacity. The 2-20 seating utility aircraft market is witnessing sustained growth and these aircraft can be used for tourism, cargo and adventure sport than the normal commercial aircraft," he said.
"It can also go places where normal airplanes cannot take you," he said.
He pointed out that some of these aircraft from other firms were used to supply food and essential commodities in December, 2004, tsunami in areas unreachable by other vehicles.
Krishnamurthy said Mahindra expects $150 million annually in the next five years from the aerospace component business.
Mahindra Aerospace CEO and Executive Director Arvind Mehra said they have an excellent relationship with NAL and the groundbreaking ceremony of the plant, set up at an investment of over $60 million, would take place soon.
"It will happen shortly... We will be doing the ground breaking ceremony and expect it to become fully operational in one year," he said.
He said the 2-20 seating capacity aircraft market, valued at $5 billion, was witnessing a "historical" growth of 15% year-on-year.