Trade ties: Boeing says India business unaffected by tariff tensions; plans more local investments under ‘Make in India’ push

American aerospace giant Boeing has downplayed concerns that India–US trade frictions could hit its operations, saying that tariff disputes have no bearing on its commercial or defence business in the country, ET reported.Salil Gupte, President of Boeing India, said the company continues to see India as a key market for growth and industrial partnership, even as Washington’s tariff measures have stirred unease across sectors. “Aerospace and defence should be in a zero-for-zero tariff environment,” Gupte said, noting that Boeing has conveyed this position to all governments engaged in trade talks.Boeing, which has built a strong presence in India across both commercial and defence aerospace, manufactures Apache helicopter fuselages and other aerostructures in Hyderabad and produces composite assemblies for its 737 MAX, 777X and 787 Dreamliner aircraft.‘Win-win’ for both nationsGupte said Boeing’s India operations reflect a strategic alignment between both governments’ industrial goals. “Aerospace industrialisation in India is a priority not only here but also for the United States. It continues to be a win-win for both countries, even through these trade talks,” he told ET.Localisation at the core of Boeing’s India planThe company is now expanding local capability investments, including setting up a pilot training facility with Air India and ramping up maintenance, repair and overhaul (MRO) work to retain more aviation spending within the country.

“Localisation of the ecosystem capabilities is a priority because only with that localisation can our airline customers grow profitably,” Gupte said. Boeing has also urged its global partners such as GE, Rolls-Royce, Honeywell and Pratt & Whitney to develop more capacity in India to serve local carriers.Government officials told ET that large Indian orders for aircraft and engines from US companies also help narrow the trade surplus that India runs with Washington.Orders and production outlookBoeing, which secured hundreds of jet orders this year from carriers in Indonesia, Japan, Bahrain, Saudi Arabia and Qatar, has seen strong Indian demand too. Air India and Akasa Air have jointly ordered 590 aircraft, to be delivered over the next decade.Though Boeing continues to trail Airbus in total order size, its prospects are improving as the US Federal Aviation Administration has cleared a production ramp-up from 38 to 42 aircraft a month, enabling quicker deliveries to Indian customers.“There is no restriction on any Indian company doing more business with any American company,” a senior government official told ET, underscoring the resilience of defence and aviation partnerships between the two nations.Akasa Air’s chief commercial officer Praveen Iyer said the airline expects a steady supply of aircraft. “We are confident about this partnership,” he said.