There has been a deep bond between Indian and American companies as manufacturing and supply chain partner, and it keeps growing. A most recent example is Boeing’s deal with Air India, which is said to be the largest passenger plane order in history. An agreement was announced last month for the U.S. aerospace firm to supply India’s largest airline, with 220 aircraft worth about $34 billion. Air India is also purchasing 250 passenger planes from European manufacturer Airbus; the financial information is unknown to the public.
Air India has also purchased the following:
- 210 Airbus A321neo and Airbus A320 aircrafts
- 190 Boeing 737 MAX single-aisle planes
- 10 Boeing 777-9 wide-body aircraft
- 40 Airbus A350s
- 20 Boeing 787s.
By 2025, some of these planes will arrive in India, and some will be in service this year. The order is extended to more than just planes. India signed a Memorandum of Understanding with Rolls Royce for 68 Trent XWB-97 engines, the largest order placed on this engine. The XWB is used only to power the Airbus A350-1000. They have also ordered the Rolls Royce XWB-84 engine, the only option for Airbus A350-900, alongside an order of 60 engines from General Electric.
Consequences of The Air India purchase
Not only will it be a test for the companies, but it will also be for the Asian economy that is doing everything to attract foreign companies to become a global manufacturing hub as western corporations disentangle their dependence on China.
The Boeing deal indicates a wider aim among global manufacturers like Nokia, Samsung and Apple to build up manufacturing in India. This could reinforce Boeing’s plans for expanding its Indian supply and increasing local manufacturing.
According to Joe Biden, the agreement made will provide over a million jobs across 44 out of 50 States in the U.S. The United Kingdom is equally excited about the agreement. Because the manufacturing, including the engine and wings, will take place in the United Kingdom. Prime Minister Rishi Sunak said it would provide great-paying job opportunities and investments nationwide. Prime minister Modi states that this deal will also reflect positively between France and India. France is fully committed to providing India with good technology.