Washington: The United States on Wednesday (local time) lauded the Air India-Boeing deal and said that the agreement is mutually beneficial for the US and Indian economies, especially the aviation sector.

"It is something that we've heralded. It is an opportunity not only for the American economy and for workers here in this country, but it's an opportunity for the Indian people as well," State Department spokesperson Ned Price said while responding to a question on Air India ordering civilian planes that will create millions of jobs in the US.

Notably, Air India Ltd on Monday made aviation history with the biggest aircraft order ever, agreeing to purchase a total of 540 aircraft from Boeing and France's Airbus that will help the Tata Group airline expand its horizons in India and abroad.

"It's an opportunity to deepen what is already a profoundly intertwined relationship based on shared interests, based on shared values, based on our deep economic ties and with the announcements between Boeing and Air India yesterday, those ties are all the deeper," said US State Dept spokesperson.

Price further stated that the agreement announced between Boeing and Air India is a vivid example of US engagement around the world, "not just in India but around the world - in what we refer to as commercial diplomacy, seeking to find concrete, tangible, practical ways to deepen our economic ties with countries around the world in a way that benefits the American people back here at home."

He said, "the number of jobs it creates here, the number of opportunities it creates in India, and the possibility it provides to deepen that partnership even further."

US President Joe Biden on Tuesday (local time) spoke with Prime Minister Narendra Modi to discuss the historic agreement for Air India to purchase over 200 American-made aircraft from Boeing.

Biden noted how the sale will support over one million American jobs across 44 states, and help Air India meet growing demands for air transportation in India, read a White House statement.

Mukesh Aghi, President and Chief Executive Officer of the US- India Strategic Partnership Forum on Wednesday said that Air India's expansion of a record 470 jets is a testimony to the strength of the US-India commercial partnership.

"We commend Air India on the expansion of a record 470 jets from Airbus (250) & Boeing (220). It's one of the largest purchases in commercial aviation history and a testimony to the strength of the US-India commercial partnership," said Aghi.

There is an option for Air India to buy 70 more aircraft from Boeing.

Air India, which will buy 250 aircraft from Airbus, has also selected Boeing for the purchase of up to 290 planes as part of its growth strategy.

The US aerospace company on Tuesday said that it will be the largest Boeing order in South Asia.

In a statement, Boeing said that the agreement between Boeing and Air India includes options for 50 additional 737 MAXs and 20 787-9s.