Aerospace major Boeing has enhanced its India-based sourcing of components and services to $1.25 billion per year, as part of its commitment to ‘Make in India’.
“Despite currency depreciation, our annual sourcing from India has risen from $250 million to $1.25 billion over nearly a decade, with our supplier network expanding by 1.5X,” said Salil Gupte, president, Boeing India and South Asia.
The company has a network of over 300 local supplier partners.
The growth is propelled by advancements in quality and capability, he said, “transitioning from simple assemblies to more complex ones, including advanced materials like composites and full-size determinant assembly, which employs next-generation manufacturing technologies such as robotics”.
Gupte anticipates further growth in India-based sourcing as the local supply chain network continues to enhance capabilities.
“India has become the largest site for Boeing outside of the United States in terms of workforce. Boeing will continue to invest in local manufacturing, co-production, co-development, skill enhancement, and innovation initiatives…”
When asked about the supply chain constraints, Gupte said that Boeing continues to focus on driving stability across its global supply chain.
“There is progress in many areas of the supply base; however, we expect supply chain challenges to continue into the near future,” he said. He added that Boeing continues to work through supply chain challenges on a case-by-case basis, such as adjusting sourcing and inventory management practices and partnering with customers to be as predictive as possible.
On India’s civil aviation market, he said domestic passenger air traffic, has surpassed pre-pandemic levels, which highlights pent-up demand for travel “but also underscores the industry’s adaptability”.
He credited this resurgence to India’s growing middle class, which has rising disposable incomes and is a significant driver of demand for air travel, both domestically and internationally.
“The expansion of India’s electronics manufacturing industry, particularly in higher-value segments, is fuelling increased demand for cargo services,” Gupte added.
Besides, he added, India’s fleet size is set to nearly quadruple by 2041 compared to 2019. The country is projected to receive over 90% of South Asia’s airplane deliveries, requiring over 2,500 new aircraft, while its cargo market is set to expand significantly, with the fleet growing from 15 to 80 airplanes by 2042.
Boeing’s 2023 ‘Pilot and Technician Outlook’ also forecasts demand in South Asia for 37,000 pilots and 38,000 maintenance technicians over the next 20 years to meet industry needs, driven primarily by growing demand in India.
