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India Poised to Be Boeing's Top Global Parts Hub
7 Feb
Summary
- India is set to become Boeing's largest foreign OEM base for aircraft parts.
- Boeing sources over $1.25 billion annually in components and services from India.
- India's interim trade deal with the US includes removal of aircraft part tariffs.
Boeing, a major US aerospace manufacturer, is significantly increasing its reliance on India for aircraft components. The company is looking to establish India as its largest foreign original equipment manufacturer (OEM) base for parts going forward. This strategic development was announced by India's Commerce and Industry Minister, Piyush Goyal.
Boeing's current annual sourcing from India stands at over $1.25 billion, encompassing both components and services. The US aviation giant operates a substantial fleet of 265 commercial and military aircraft in India, highlighting the country's importance as a market. This move is facilitated by an interim trade agreement between India and the US, which includes the removal of tariffs on specific aircraft and parts originating from India.
Competitor Airbus also has ambitious plans for India, aiming to raise its component and service sourcing to $2 billion by 2030, up from its current $1.4 billion. Both aerospace leaders express considerable enthusiasm for the expanding India-US partnership and the potential for increased collaboration in India's growing aerospace sector.
