Boeing is actively pursuing India as a key hub for research and development (R&D) and supply chain operations. This initiative is part of the company's broader strategy to recover from recent safety challenges and enhance its business operations. The aerospace giant aims to strengthen partnerships with local firms, which will help improve its sourcing capabilities and expand its presence in areas such as aircraft maintenance and training.

Investment And Development Focus

Boeing's investment in India includes the establishment of a significant facility in Bengaluru, which is its largest investment outside the United States. This facility will focus on developing advanced cabin products and digital solutions, catering to both Boeing and Airbus operators. The company plans to increase its supplier base in India, which currently consists of over 300 partners, and establish new warehouses for local parts storage.

The unit sells parts and distribution services, digital analytics, engineering and modification and training support to not only Boeing customers but also many Airbus operators.

In January, Boeing opened a new engineering and technology centre in Bangalore. The company invested around ₹1,600 crore for this which until now is its largest investment of its kind outside the US.

Raymond said the company has started designing, building and testing some of its most advanced cabin products at the Bengaluru facility. Prominent among them is a tool called Flight Deck Advisor, which the company is developing as an integrated app for multiple functions that a pilot undertakes inside the cockpit.

Boeing is doing a huge amount of design, development and product development here in India. It also have a digital experience centre now in Bangalore. The company bring customers not only from India but across the globe in there to understand what improvements or efficiencies they'd like to get in an aircraft. There are engineers there capable of making those things come true and bring the customers back in and show them how it could work. So, it's certainly not back office - it's R&D and product development, stated Raymond in an interaction with Indian media.

The company is looking to increase its supplier base in India from the current 300 partners and build new warehouses for housing parts locally as it tries hard to increase the production of planes which has slowed down significantly due to a global supply chain constraint, worsened by increased regulatory surveillance after multiple incidents with the 737 Max aircraft.

Economic Impact And Market Potential

Chris Raymond, Boeing's Executive Vice President, highlighted the immense potential of the Indian market, noting a strong correlation between rising GDP and increased air travel demand. By investing in India's aerospace ecosystem, Boeing not only aims to capitalize on the growing aviation market but also to contribute to the country's economic growth.

Boeing's focus on India as a research and development and supply chain hub reflects its commitment to rejuvenating its business while tapping into the burgeoning Indian aviation market. This strategic move is expected to enhance local partnerships and bolster Boeing's operational capabilities in the region.

Agencies