US aerospace giant Boeing may have resisted Indian policymakers’ pressure for locally assembling passenger aircraft, but it has a deepening footprint in the civil aviation ecosystem. This is to be welcomed as there is already a critical mass of its investments in engineering, supply chain and maintenance facilities. Employing over 6,000 people in the country with more than 13,000 working with its supply chain partners, India is now the largest site for Boeing outside of the US. A couple of months ago, it announced the inauguration of Boeing India Distribution Centre in Khurja in Uttar Pradesh, a 35,000 square foot parts warehouse—one of the eight distribution centres around the world—to support the need for spare parts for Boeing’s commercial customers. This distribution centre is positioned strategically along the dedicated eastern freight corridor and in proximity to both the Delhi and upcoming Jewar airport and testifies to Boeing’s commitment to support the local maintenance, repair and overhaul industry. Boeing has enhanced its India-based sourcing of components and services to $1.25 billion a year.
The distribution centre is only the latest of Boeing’s investments to support the growth of India’s civilian aviation industry which is poised for a take-off. India’s fleet requirements are pegged at 2,000 in the next 15 years. The enabling infrastructure is also in place. The number of airports has increased from 74 to 147. The regional connectivity scheme, Udan, has ensured air connectivity with smaller towns and remote areas. Domestic passenger air traffic has surpassed pre-pandemic levels, which not only highlights pent-up demand for travel “but also underscores the industry’s adaptability”, stated Salil Gupte, president, Boeing India and South Asia to FE. He credited this to the growing middle class with rising disposable incomes.
The expansion of India’s electronics manufacturing, particularly in higher value segments, is also fuelling increased demand for cargo services according to Gupte. India’s cargo market thus is set to expand from 15 to 80 aircraft by 2042. Boeing has a partnership with GMR Aero Technic to convert its 737 passenger planes into dedicated freighters and has committed a $100 million investment in infrastructure and pilot training programmes to support the industry’s growing demand for pilots.
Also Read On Prime Minister Modi’s Kashmir Visit The US Dollar, BRICS, and a Post – Dollar World International Women’s Day 2024- Inspire Inclusion Potential of Variety India and AI application Boeing’s growing involvement in India’s civilian aviation is bound to raise questions on when it will make its move to locally assemble passenger aircraft. This is certainly an idea whose time has come. The big question is what is the sort of demand it is looking at to undertake final assembly? Company officials have stated in the past that the volumes required for final assembly on the commercial part of the business are just far greater. But if a final assembly line is justified if it turns out 5-10 aircraft a month and there is overall demand for 120 a year—then the massive domestic fleet expansion orders indicate that the time is right. The other option is a process staggered in time to push Boeing to source more from the country to enable domestic suppliers to gain more expertise and a sophisticated manufacturing ecosystem is established. But this cannot be an indefinite wait as India’s policy makers are keen that a domestically assembled civilian aircraft is soon a reality. Greater strategic intent is perhaps needed to reconfigure the historic fleet orders by domestic airlines to ensure that a certain proportion is assembled in the country.
US aerospace giant Boeing may have resisted Indian policymakers’ pressure for locally assembling passenger aircraft, but it has a deepening footprint in the civil aviation ecosystem. This is to be welcomed as there is already a critical mass of its investments in engineering, supply chain and maintenance facilities. Employing over 6,000 people in the country with more than 13,000 working with its supply chain partners, India is now the largest site for Boeing outside of the US. A couple of months ago, it announced the inauguration of Boeing India Distribution Centre in Khurja in Uttar Pradesh, a 35,000 square foot parts warehouse—one of the eight distribution centres around the world—to support the need for spare parts for Boeing’s commercial customers. This distribution centre is positioned strategically along the dedicated eastern freight corridor and in proximity to both the Delhi and upcoming Jewar airport and testifies to Boeing’s commitment to support the local maintenance, repair and overhaul industry. Boeing has enhanced its India-based sourcing of components and services to $1.25 billion a year.
The distribution centre is only the latest of Boeing’s investments to support the growth of India’s civilian aviation industry which is poised for a take-off. India’s fleet requirements are pegged at 2,000 in the next 15 years. The enabling infrastructure is also in place. The number of airports has increased from 74 to 147. The regional connectivity scheme, Udan, has ensured air connectivity with smaller towns and remote areas. Domestic passenger air traffic has surpassed pre-pandemic levels, which not only highlights pent-up demand for travel “but also underscores the industry’s adaptability”, stated Salil Gupte, president, Boeing India and South Asia to FE. He credited this to the growing middle class with rising disposable incomes.
The expansion of India’s electronics manufacturing, particularly in higher value segments, is also fuelling increased demand for cargo services according to Gupte. India’s cargo market thus is set to expand from 15 to 80 aircraft by 2042. Boeing has a partnership with GMR Aero Technic to convert its 737 passenger planes into dedicated freighters and has committed a $100 million investment in infrastructure and pilot training programmes to support the industry’s growing demand for pilots.
Boeing’s growing involvement in India’s civilian aviation is bound to raise questions on when it will make its move to locally assemble passenger aircraft. This is certainly an idea whose time has come. The big question is what is the sort of demand it is looking at to undertake final assembly? Company officials have stated in the past that the volumes required for final assembly on the commercial part of the business are just far greater. But if a final assembly line is justified if it turns out 5-10 aircraft a month and there is overall demand for 120 a year—then the massive domestic fleet expansion orders indicate that the time is right. The other option is a process staggered in time to push Boeing to source more from the country to enable domestic suppliers to gain more expertise and a sophisticated manufacturing ecosystem is established. But this cannot be an indefinite wait as India’s policy makers are keen that a domestically assembled civilian aircraft is soon a reality. Greater strategic intent is perhaps needed to reconfigure the historic fleet orders by domestic airlines to ensure that a certain proportion is assembled in the country.
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Make-in-India push
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09.03.2024
US aerospace giant Boeing may have resisted Indian policymakers’ pressure for locally assembling passenger aircraft, but it has a deepening footprint in the civil aviation ecosystem. This is to be welcomed as there is already a critical mass of its investments in engineering, supply chain and maintenance facilities. Employing over 6,000 people in the country with more than 13,000 working with its supply chain partners, India is now the largest site for Boeing outside of the US. A couple of months ago, it announced the inauguration of Boeing India Distribution Centre in Khurja in Uttar Pradesh, a 35,000 square foot parts warehouse—one of the eight distribution centres around the world—to support the need for spare parts for Boeing’s commercial customers. This distribution centre is positioned strategically along the dedicated eastern freight corridor and in proximity to both the Delhi and upcoming Jewar airport and testifies to Boeing’s commitment to support the local maintenance, repair and overhaul industry. Boeing has enhanced its India-based sourcing of components and services to $1.25 billion a year.
The distribution centre is only the latest of Boeing’s investments to support the growth of India’s civilian aviation industry which is poised for a take-off. India’s fleet requirements are pegged at 2,000 in the next 15 years. The enabling infrastructure is also in place. The number of airports has increased from 74 to 147. The regional connectivity scheme, Udan, has ensured air connectivity with smaller towns and remote areas. Domestic passenger air traffic has surpassed pre-pandemic levels, which not only highlights pent-up demand for travel “but also underscores the industry’s adaptability”, stated Salil Gupte, president, Boeing India and South Asia to FE. He credited this to the growing middle class with rising disposable incomes.
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