US-based Boeing is a large buyer of aircraft parts from India and is looking at the country as its largest foreign original equipment manufacturer (OEM) base for components going forward, Commerce and Industry Minister Piyush Goyal said on Saturday.
Under an interim trade agreement with India, the US has agreed to remove tariffs on certain aircraft and aircraft parts of India.
"Already Boeing and Airbus are large buyers of aircraft parts from India...I am told both these companies are looking at India as the largest foreign OEM for parts going forward and I have had conversations with the top board and CEO of both companies. There is a lot of excitement about the India-US partnership," he told reporters here.
Boeing has over 265 commercial and military aircraft operating in India, which is a key market for the plane maker.
The company has more than 325 suppliers and the annual sourcing from the country is worth over USD 1.25 billion. The amount includes components and services.
Airbus also aims to increase its sourcing of components and services from India to USD 2 billion by 2030. Currently, it is around USD 1.4 billion.
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