India–US Trade Agreement Puts Indian Aerospace Suppliers in Global Spotlight

The India–US interim trade agreement is expected to significantly deepen bilateral economic engagement, with the aerospace sector emerging as a major beneficiary amid expanding sourcing and manufacturing opportunities.

Commerce and Industry Minister Piyush Goyal said global aircraft manufacturers are increasingly looking at India as a strategic production base. He noted that US aircraft maker Boeing is already a major buyer of aircraft parts from India and is considering the country as its largest foreign Original Equipment Manufacturer (OEM) hub for components in the coming years.

Under the interim framework, the United States has agreed to reduce and remove tariffs on several key products, including aircraft and aircraft parts, boosting competitiveness for Indian exporters. Goyal said both Boeing and European aerospace major Airbus have conveyed strong interest in expanding their Indian supply chains, reflecting growing confidence in India’s manufacturing ecosystem.

Boeing currently operates more than 265 commercial and military aircraft in India and works with over 325 Indian suppliers, with annual sourcing exceeding USD 1.25 billion. Airbus, meanwhile, has announced plans to scale up its sourcing of components and services from India to USD 2 billion by 2030.

Welcoming the agreement, Salil Gupte , President of Boeing India and South Asia, said the pact would open “multifold opportunities” and reiterated the company’s long-standing support for a zero-for-zero tariff regime in the aerospace and defence sector, citing its positive impact on industrial growth and global connectivity.

Industry leaders also see tangible gains for domestic suppliers. Aravind Melligeri , Executive Chairman and CEO of Aequs, said the lifting of tariffs would improve cash flows, enhance cost competitiveness and strengthen integration of Indian firms with US aerospace supply chains.

According to industry estimates, global OEMs source aerospace components and services worth over USD 2 billion annually from India, a figure expected to rise as market access improves. The broader strategic intent of the partnership was underlined in the India–US joint statement , which said India plans to purchase USD 500 billion worth of US energy products, aircraft and aircraft parts, technology goods and other commodities over the next five years.