According to people acquainted with the situation, international aerospace manufacturers are keenly examining the India-US trade agreement, which is anticipated to greatly improve India’s standing in the global aviation supply chain and stimulate new aircraft purchases.
The deal puts India on level with well-known supply hubs in Europe, Japan, and South Korea by granting zero-duty access for aerospace components supplied from India to the US. According to officials, this might result in a significant increase in India’s aerospace exports, which are now valued at about $1.25 billion for Boeing and $1.5 billion for Airbus yearly.
With Commerce and Industry Minister Piyush Goyal suggesting that India may soon rank among Boeing’s top foreign component suppliers, the corporation is anticipated to treble its sourcing from India. Additionally, the agreement lowers aerospace product tariffs from 50% to 18%, which benefits domestic suppliers and manufacturers.
Additionally, lower tariffs are probably going to encourage Indian carriers to buy more aircraft. Currently, airlines like Akasa and Air India Group have placed orders with Boeing totaling almost $50 billion. IndiGo is anticipated to place a sizable order for wide-body aircraft, and officials predict that in the upcoming years, Indian airlines may place orders totaling between $70 to 80 billion for aircraft, engines, and spare parts.
Salil Gupte, president of Boeing India and South Asia, stated that the deal opens up a number of opportunities and has the potential to boost bilateral trade and economic cooperation.
Source – The Economic Times
