The global growth of civil aviation, along with high domestic demand, has meant that aerospace giant Boeing has remained the largest exporter of aircraft parts and software from India.
Exclusively spoken against business line, Boeing’s president, India and South Asia, Salil Gupte, cited that the aerospace giant’s annual purchasing from India has grown significantly over the past decade, from $250 million to more than $1.25 billion annually.
“This marks a substantial increase, driven by the expansion of the supplier network and improvements in manufacturing capabilities,” Gupte said business line.
“It’s also fair to say that this growth is truly remarkable, considering that production of the aircraft themselves on the civilian side has been much lower than before the pandemic.”
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Boeing remains confident of maintaining its leadership as the largest foreign OEM with the highest exports from India.
“Boeing will continue to invest in local manufacturing, co-production, co-development, skills enhancement and innovation initiatives to support the growth of the overall aerospace, defense and commercial aviation ecosystem,” he said.
‘1.5x’ growth
Furthermore, Boeing has been able to achieve ‘1.5x’ growth in its supplier network over the past decade. The airline currently has more than 300 suppliers.
This trend, according to Gupte, reflects steady progress, with advances in technology adoption and manufacturing complexity in recent years.
According to Gupte, having a robust supply chain in India is mutually beneficial for Boeing and India.
“A strong supply chain helps Boeing support the growth of India’s aerospace and defense manufacturing capabilities, enabling suppliers to compete on a global scale,” he said.
“It is critical to build on this success as developing a robust and diversified supply chain across strong manufacturing and technical bases like India is key to building a resilient global supply chain.”
Gupte added that India has become the largest facility for Boeing outside the United States in terms of workforce.
“Maintaining a strong supply chain encourages collaboration and creates an environment conducive to the exchange of knowledge and the development of new technologies,” he said.
“It is imperative to invest in supplier development activities as these enhance the competencies and skills of Indian suppliers and bring them in line with international standards.”
Moreover, he said that the Indian aerospace and defense sector is witnessing a burgeoning growth that brings together a large number of talents.
Complete order book
Currently, Boeing has a full order book from commercial and defense customers including Air India, Air India Express, Akasa Air, SpiceJet, Blue Dart and Quikjet in the commercial aviation sector.
On the defense side, India operates Boeing platforms such as the C-17 Globemaster, AH-64 Apache helicopters, CH-47 Chinooks, P-8I maritime patrol aircraft, VVIP aircraft (based on the 737 airframe) and Head of State aircraft. (based on the 777 airframe), making India one of Boeing’s largest defense markets.
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The country’s traditional strengths in engineering, which extend beyond software to include broader engineering disciplines, have converged over the past decade with a substantial improvement in manufacturing quality, Gupte said.
“This combination of engineering excellence and enhanced manufacturing capabilities offers industrial companies a remarkable opportunity to invest in India.”
Moreover, Gupte pointed out that initiatives like ‘Make in India’, financial incentives and infrastructure development have created an enabling environment for growth.
“Boeing’s investments reflect our confidence in the country’s potential. “Boeing’s strategic focus on advancing and strengthening its supplier network has been critical,” he said.
“This growth is being driven by significant improvements in quality and capabilities along the value curve, moving from simple assemblies to more complex assemblies, including advanced materials such as composites and full-size determinant assembly (FSDA), utilizing manufacturing technologies from the next generation, such as robotics.”
Worldwide, Boeing is rebuilding after a challenging year, including the Alaska Airlines incident and a machinists’ strike. The company has taken significant steps to address the concerns, including organizational restructuring, increased focus on safety and quality and the recent resumption of production of the 737 Max at the Renton plant. These measures indicate Boeing’s commitment to stabilizing operations and restoring confidence.
