Boeing has indicated that it requires a greater number of aircraft orders from India before it will contemplate establishing a final assembly line for commercial jets within the nation, which may lead to a reassessment of India’s aspirations in this regard. Salil Gupte, President of Boeing India and South Asia, conveyed to Reuters that the business rationale for setting up final assembly in any region necessitates a market size significantly larger than what India currently offers, emphasizing that the demand for aircraft in India must increase substantially. He noted that the situation will need to be monitored as both the Indian market and its surrounding regions develop, while also stressing the importance of gradually enhancing capabilities to reach that objective during a discussion at the Aero India show. Boeing reiterated its dedication to the aerospace industry in India but acknowledged that the assembly of commercial aircraft demands a market that is considerably larger than that required for defense projects. The company has previously suggested the possibility of assembling defense aircraft, including F/A-18 jets, in India, as reported by Reuters. Prime Minister Narendra Modi had stated last year that India would soon witness the domestic design and manufacturing of a Boeing aircraft, while the civil aviation minister has encouraged both Boeing and Airbus to initiate civil aircraft production within the country. Currently, Boeing procures $1.25 billion worth of products and services annually from India through a network of over 300 suppliers and employs approximately 7,000 individuals in the country. Its collaboration with Tata Group involves the production of AH-64 Apache helicopter fuselages and 737 vertical fin structures for international clients. Gupte also emphasized the necessity for government incentives to lower capital costs for suppliers, indicating that discussions with the civil aviation ministry are ongoing.
