The Indian aerospace industry is very small as compared to the one in Europe or the United States. In India you will most likely be employed in government owned enterprises such as ISRO (Indian Space Research Organisation), DRDO (Defence Research and Development Organisation), HAL (Hindustan Aeronautics Ltd.), NAL (National Aeronautics Labs), etc. A lot of prestige is associated with working in these organisations and they attract the top brains in the country.
You could also work for airlines like Air India, Indian Airlines, Jet Airways, etc. Openings also exist in civil aviation departments as well as the Indian Air Force.
There is no dearth of opportunities for those who wish to work abroad. In fact, a large percentage of engineers at NASA (National Aeronautics and Space Administration, United States) are Indians. The same is the case with aerospace giants like Boeing, McDonnell Douglas, etc.