IBEF: March 16, 2020
Boeing is planning to double its annual sourcing from India to US$ 2 billion in near future, said Mr Salil Gupte, President, Boeing India.
According to Mr Gupte, “Currently our annual sourcing from India is around US$ 1 billion. Our goal is to double that over a number of years”. He added that this could possibly happen in the next 5-10 years.
From India, Boeing supplies critical components such as aero structures, wire harness, composites and ground support equipment. Its suppliers consist of TAL Manufacturing Solutions and Hyderabad-based Cyient.
The investments made by the company in India is providing a boost to aerospace sector, creating jobs and driving innovation.
The impact of coronavirus on the industry is negative as airlines in the Asia-Pacific region had cut flights by almost 50 per cent. According to officials, the daily departures in China have come down to around 3,000 flights a day as against the earlier 15,000. Similarly, in other parts of Asia Pacific, the number of daily flights dipped to 2,500 from around 5,000 daily departures. Boeing officials claimed that whenever there has been a dip in passenger demand, the bounce back has been faster.
For Now, Boeing has estimated that India will require around 2,500 new commercial aircraft by 2040.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.