India has become our largest site outside US, says Boeing India President Salil Gupte

Representative image.

India has become the largest site for Boeing outside the US in terms of manufacturing and workforce, its India President Salil Gupte said, underscoring the region's importance for the aircraft major.

“India is leading the way. It is not just building something that is already built somewhere. India is leading in innovation at Boeing…To me, that’s an example of what India can make and accomplish and we are excited about this market,” he said.

Gupte’s words come at a time when there are talks about Air India securing around 190 Boeing 737 MAX narrow-body planes along with 20 Boeing 787s and 10 Boeing 777X.
“Today the demand for aircraft has jumped high. There is no surprise that Air India is looking for more aircraft. They are going to talk to Boeing, Air Bus, and everyone to match that demand,” Gupte said adding that the times are very exciting for the aviation industry.

Boeing has around 300 suppliers in India and 70 are MSMEs, Gupte said.

“We have valuable relationships with the giants of the Indian industry like the Tatas, the Mahindras, and the Bharat Forge but it is equally important to codevelop with the next generation of the giants,” Gupte said.

Boeing is said to have a market share of more than 40 percent in a $1.5 billion aviation market in India making the company the largest player.

“We are first to engage with governments in terms of defence aircraft and we have capabilities to manufacture. We are working on developing a capability here in India that will excel in exports, and services to India’s partners in terms of military partnerships and other countries,” Gupte added.

Gupte spoke on the sidelines of launching Boeing’s engineering and technology centre with an investment of close to $200 million in Bengaluru on January 30. The 40-acre facility which will be put up next to the Bengaluru airport, will be completed by the end of 2023.

“We are not specifically charting plans to hire. However, we will continue to grow the workforce as per the needs and the demand,” Gupte said.

Macroeconomic pressures and outlook for 2023 

“We understand that there is macroeconomic pressure and it is going to have an impact on many industries. And for us the additional pressure is on the supply chains…this challenge may continue for the next year or two,” Gupte said.

However, Gupte said that the demand for commercial and defence aviation is strong.

“We are extremely optimistic. Commercial aviation demand is unlike anyone has seen. India is already above pre-pandemic levels in terms of travel and the rest of the world is also following the same. Defence segment is also doing good for us,” he added.

The aviation Industry in India and globally has a target to reach net zero by 2050. Gupte said that this target is challenging and that the company is also working on sustainability and net zero emissions.

“We have been working with the Indian Institute of Petroleum to develop a sustainable aviation fuel for India and for the world. This is undergoing testing right now and it will be the first step towards the sustainability journey,” Gupte said.

Partnering with startups 

The startup ecosystem is very well established and it makes sense for any companies to partner with them, he said.
“We are in touch with many startups for not just software services but also for other areas where we will be collaborating with startups,” Gupte added.

Boeing also has a startup accelerator programme ‘Boeing University Innovation Leadership Programme’ (BUILD) where the company encourages, mentors, and collaborates with various startups.

Budget 2023 expectations 

Gupte said that the company expects continued investment in infrastructure, airports, and aviation technology.
“In Defence, there will be continued investment and capex (capital expenditure) which will boost demand for Boeing,” he added.

Gupte said that he is also looking forward to seeing the government bring down taxation on aviation fuel to make India competitive with the rest of the world.