Aerospace giant Boeing is planning to boost its engagement with India by stepping up sourcing of key components and high value parts from the country. The company is also exploring the potential to set up a manufacturing unit to tap the opportunities offered by the fastest growing aviation market, said Boeing India chief Salil Gupte.
Asked if Boeing will put a commercial airplane final assembly line in India, Gupte said, “We continue to evaluate the business case for assembly and rate increases as demand for our products grow. Volumes required for final assembly of commercial airplanes are far greater than that required for defense, and a business case would require a large regional market.
“Boeing is already the top foreign aerospace and defense company in India when measured by the more than 5,000 engineers and other skilled staff we employ in India, and the further 13,000 employed by our suppliers. Our supply chain footprint extends to over 300 local companies and $1 billion spent annually on local sourcing.”
Currently Boeing sources over $1 billion per year from India, of which roughly two-thirds is from manufacturing, making it the largest importer of original equipment from the country . Over the last 18-24 months it has signed an additional $1 billion worth of contracts.
According to Gupte, India’s high air traffic demand is not a temporary phase. “….this is not due to temporary burst of demand or travel or revenge travel or anything. This is a long-term structural growth pattern in India that is driven by a growing economy, a growing middle class and an increased desire to fly. People are transitioning from other modes of transportation to the skies,” Gupte added.
Last updated: December 26th, 2025
