Boeing's Indian Assembly Line: More Orders Needed Before Takeoff

Boeing, the world's largest aerospace company, has been eyeing the Indian market for some time, but the company's plans for setting up a final aircraft assembly line in the country may still be on the ground. In a recent interview, Boeing India and South Asia president Salil Gupte revealed that the business case for a final assembly line (FAL) in India is not yet compelling, as the Indian market is not large enough to support it.



Gupte emphasized that the FAL represents less than 10% of the overall value of an aircraft, and the real value lies in the components, systems, and parts leading up to that stage. Therefore, Boeing is currently focused on increasing its sourcing from India, which is already over $1 billion annually, before considering a final assembly line. As the demand grows in India and the region, Boeing will evaluate the business case for a FAL.

Boeing's assessment of the Indian market for aircraft assembly differs from its global strategy due to the current size of the market and the business case for establishing a FAL. While the Indian market may not currently support a FAL, Boeing acknowledges the growth potential in the region and is preparing for future expansion, aligning with the Indian government's "Make in India" initiative.

In conclusion, Boeing's plans for setting up a final aircraft assembly line in India are still in the early stages, as the company awaits more orders to justify the investment. As the Indian market continues to grow and Boeing's supply chain in the country strengthens, the business case for a FAL may become more compelling. Investors should keep an eye on Boeing's progress in India and the broader aerospace industry as the company works to expand its global footprint.