India-US interim trade pact: 'Boeing, Airbus looking at India as largest OEM partner,' says Piyush Goyal

Union Commerce Minister Piyush Goyal said at a press conference on Saturday that the world’s largest aerospace companies — Boeing and Airbus — are looking at India as the largest original equipment (OEM) manufacturer. India is a major player in the aerospace components space globally.

Goyal’s statement came after India and the US finalised an interim trade framework, which slashed the 50 per cent duties on Indian exports to an 18 per cent reciprocal tariff. 

Under Section 232, the US will apply zero additional duty on select product categories, including aircraft parts, to support smoother trade flows and strengthen industrial cooperation between the two countries. 

This, however, is not the first time that Goyal spoke of Boeing’s India order book. Speaking to reporters on Thursday, he said, “Orders placed on Boeing and yet to be placed but ready, are nearly $70-80 billion. If you add the engines and other spare parts, it will probably cost $100 billion.”

Meanwhile, Salil Gupte, president, Boeing India, South Asia, said that the aerospace giant has advocated for a zero-for-zero tariff approach for a very long time in the defence and aerospace sector. 

At present, Boeing has around 400 aircraft orders from Indian carriers, with Air India recently announcing an order of 30 Boeing 737 Max aircraft. 

“This deal creates momentum to extend this principle. A tariff-free framework would accelerate industrial growth, strengthen national security and deliver win-win opportunities for both countries,” he said.

Besides this, the military transport aircraft — C295 — is the first Made in India project from the Tata-Airbus assembly line in Gujarat’s Vadodara, a joint venture between Tata Advanced Systems Limited and Airbus. PM Modi is expected to officiate at the delivery of the military aircraft to the Ministry of Defence later this year. 

Around 70 per cent of the components used in the making of C295 were sourced from India whereas 30 per cent were imported, including the engine from the US-based Pratt & Whitney.