Boeing Seeks More Orders Before Committing To Indian Aircraft Assembly Line

On Monday, Boeing Co. BA stated that it would require a significant increase in orders from India before establishing a final civil aircraft assembly line in the country.

“The business case for final assembly in any region must be far larger than what the Indian market currently supports,” said Salil Gupte, president of Boeing India and South Asia, in an interview with Reuters. “It requires many more airplanes than are being bought in India today.”

Gupte emphasized a step-by-step approach to expanding final assembly in India, highlighting the need for market growth in the region.

Indian airlines, including Air India and IndiGo, have around 1,800 aircraft on order from global manufacturers with 130 jets set for delivery this year, according to Cirium Ascend.

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Last week, Boeing projected that India and South Asia’s commercial airplane fleet will nearly quadruple over the next 20 years, driven by more than 7% annual air traffic growth through 2043. This expansion will be fueled by economic growth, improved connectivity, and supportive air travel policies.

The forecast also highlights rising demand for fuel-efficient aircraft, with nearly 90% of deliveries expected to be single-aisle jets like the 737 MAX. Widebody fleets will expand as airlines develop long-haul routes, while cargo freighter fleets are set to grow five-fold. Additionally, the region will see the world’s fastest-growing demand for aviation professionals, with pilot, cabin crew and technician needs projected to quadruple to 129,000.

Price Action: At the last check on Monday, BA shares were trading higher by 0.47% at $182.35 premarket.

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