Daijiworld Media Network - New Delhi

New Delhi, Feb 8: US-based aerospace major Boeing is a significant buyer of aircraft parts from India and is increasingly looking at the country as its largest foreign original equipment manufacturer base for components, Commerce and Industry Minister Piyush Goyal said on Saturday.

Goyal said that under an interim trade agreement with India, the United States has agreed to remove tariffs on certain aircraft and aircraft parts originating from India, a move expected to further strengthen bilateral trade in the aviation sector.

“Already Boeing and Airbus are large buyers of aircraft parts from India. I am told both these companies are looking at India as the largest foreign OEM for parts going forward. I have had conversations with the top board and CEOs of both companies, and there is a lot of excitement about the India-US partnership,” Goyal told reporters.

Boeing currently has over 265 commercial and military aircraft operating in India, making the country a key market for the global aircraft manufacturer. The company works with more than 325 suppliers in India, with annual sourcing from the country exceeding USD 1.25 billion, including components and services.

European aviation giant Airbus is also expanding its footprint in India. The company has set a target to increase its sourcing of components and services from India to USD 2 billion by 2030, up from the current level of around USD 1.4 billion.

The growing interest of global aerospace majors in India highlights the country’s rising role in the global aviation supply chain and the deepening economic partnership between India and the United States.