Boeing's future manufacturing plans in India are contingent upon the scale of aircraft orders from the region. The company is optimistic about the growth potential of India's aviation market but emphasizes that setting up a final assembly line requires a significantly larger number of orders than what is currently being placed by Indian airlines.

Boeing's President for India and South Asia, Salil Gupte, highlighted that the business case for a final assembly line must be substantial, involving many more aircraft than are currently being purchased in India.

Currently, Boeing sources over $1 billion worth of components annually from India and collaborates with the Tata Group on parts production, including fuselages for AH-64 Apache helicopters and vertical fin structures for 737 aircraft.

Boeing currently sources over $1 billion worth of components annually from India, with this figure expected to increase significantly over the next few years. The sourcing includes manufacturing components, which account for roughly two-thirds of the total value. Boeing's network in India involves more than 300 suppliers, including a substantial number of micro, small, and medium enterprises (MSMEs.

These suppliers manufacture and export systems and components for some of Boeing's most advanced products worldwide. The company's joint ventures, such as with TATA Advanced Systems Ltd., also play a crucial role in this sourcing, producing Aero-Structures for helicopters and aircraft.

Boeing employs over 6,000 people across its Indian operations.

However, establishing a full-scale assembly line would necessitate a much larger market demand. Boeing forecasts that Indian and South Asian carriers will need over 2,835 new aircraft by 2043, with about 90% of these deliveries destined for India.

Despite Prime Minister Narendra Modi's assertion that India will soon see Boeing aircraft designed and manufactured locally, Boeing remains cautious, focusing on gradual capability building and addressing supply chain challenges.

The company is working closely with the Indian government to develop an aerospace ecosystem but requires more substantial orders to justify the investment in a final assembly line.

Agencies