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Boeing Crisis: Time for India to step into aircraft manufacturing as demand soars

Boeing’s troubles present an opportunity for India to foray into making large aircraft. It would help India realise its own unconstrained growth, and give the world a non-Chinese alternative

March 28, 2024 / 13:00 IST
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Time may be ripe for India to foray into making large aircraft.

India has to enter the business of building commercial passenger aircraft, not just the small craft that it is planning to build in collaboration with Embraer, Brazil’s maker of regional airliners. This is essential for India’s own unconstrained growth, and for the world to have a non-Chinese alternative, when it comes to additional suppliers of large passenger aircraft.

In 2023, Boeing forecast global demand for an additional 42,600 commercial jets over the next 20 years, a large share of the additional demand coming from Asia. Right now, the world depends on the global duopoly of Boeing and Airbus in the manufacture of large passenger aircraft to meet this demand.

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The duopoly has been demonstrably inefficient for quite some time. The time between placing an order and receiving deliveries has been lengthening, thanks to the ever-rising demand for aircraft from fast-growing economies like China and India, in addition to the rising appetite for air travel as incomes rise in the rich world itself. Boeing’s quality problems show that it is not easy even for a company like that to expand capacity fast while maintaining quality.

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