US trade deal to boost Indian aerospace manufacturing
Global OEMs, including US, source over $2 billion annually worth of aerospace components and services from India. India intends to purchase $500 billion of products, including US aircraft and aircraft parts.
- Feb 7, 2026,
- Updated Feb 7, 2026 3:02 PM IST
The US-India interim trade framework announced on February 7 will boost India’s share of US aerospace parts sourcing in the coming years and further push for US aerospace manufacturers with Boeing already have a sizeable orderbook from Air India and Akasa.
According to the joint statement, the US will also remove tariffs on certain aircraft and aircraft parts of India imposed to eliminate threats to local aluminium, steel and copper industry players. India is a major player in supply of aerospace components globally.
Salil Gupte, president, Boeing India, South Asia said that the company has long advocated for a zero-for-zero tariff approach in defence and aerospace sector. Boeing already has around 400 aircraft orders from Indian carriers while Air India recently announced order of 30 Boeing 737 Max aircrafts.
“This deal creates momentum to extend this principle. A tariff free framework would accelerate industrial growth, strengthen national security and deliver win-win opportunities for both countries,” he said.
The statement further mention that India intends to purchase $500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next 5 years. About $100 billion imports is expected to come from aircrafts and aerospace supply chains.
The deal will give a fillip to Indian aerospace manufacturers. Recently, Boeing has awarded Aequs a contract to manufacture aft access doors for the Boeing 767-2C. The contract reinforced Aequs’ position as a Tier-1 supplier to global aerospace OEMs, backed by its vertically integrated capabilities encompassing forging, machining, surface treatment, and aerostructure assembly within Aequs Aerospace Ecosystem.
Aravind Melligeri, Executive Chairman & CEO, Aequs Ltd said the interim agreement will lead to improved cash flows and enhanced cost competitiveness for the supply chain and will strengthen the operating environment for Indian suppliers and support deeper integration with US aerospace supply chains.
“At a time when the Indian industry was mentally preparing for at least 18% tariffs, even though lower from the previous 50%, this zero rating on certain parts is more than welcome. India’s aircraft parts and aerospace components sector, across civil and defense, has been growing sharply, with Indian suppliers now servicing major global OEMs. Global OEMs (including U.S. and non-U.S.) source over USD 2 billion annually worth of aerospace components and services from India,” he said.
The agreement will offer the opportunity for Indian aerospace is not just in assemblies, but in lifecycle sustainment.
Pavan G Ranga, MD & CEO, Rangsons Aerospace, said: “Combined with the tariff reset to 18% and policy support for aircraft-part manufacturing for MRO, this can accelerate supplier tie-ups in avionics LRUs, wire harnesses, precision machining, testing/qualification and MRO spares, helping Indian firms move up the certification-led value chain.”
The US-India interim trade framework announced on February 7 will boost India’s share of US aerospace parts sourcing in the coming years and further push for US aerospace manufacturers with Boeing already have a sizeable orderbook from Air India and Akasa.
According to the joint statement, the US will also remove tariffs on certain aircraft and aircraft parts of India imposed to eliminate threats to local aluminium, steel and copper industry players. India is a major player in supply of aerospace components globally.
Salil Gupte, president, Boeing India, South Asia said that the company has long advocated for a zero-for-zero tariff approach in defence and aerospace sector. Boeing already has around 400 aircraft orders from Indian carriers while Air India recently announced order of 30 Boeing 737 Max aircrafts.
“This deal creates momentum to extend this principle. A tariff free framework would accelerate industrial growth, strengthen national security and deliver win-win opportunities for both countries,” he said.
The statement further mention that India intends to purchase $500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next 5 years. About $100 billion imports is expected to come from aircrafts and aerospace supply chains.
The deal will give a fillip to Indian aerospace manufacturers. Recently, Boeing has awarded Aequs a contract to manufacture aft access doors for the Boeing 767-2C. The contract reinforced Aequs’ position as a Tier-1 supplier to global aerospace OEMs, backed by its vertically integrated capabilities encompassing forging, machining, surface treatment, and aerostructure assembly within Aequs Aerospace Ecosystem.
Aravind Melligeri, Executive Chairman & CEO, Aequs Ltd said the interim agreement will lead to improved cash flows and enhanced cost competitiveness for the supply chain and will strengthen the operating environment for Indian suppliers and support deeper integration with US aerospace supply chains.
“At a time when the Indian industry was mentally preparing for at least 18% tariffs, even though lower from the previous 50%, this zero rating on certain parts is more than welcome. India’s aircraft parts and aerospace components sector, across civil and defense, has been growing sharply, with Indian suppliers now servicing major global OEMs. Global OEMs (including U.S. and non-U.S.) source over USD 2 billion annually worth of aerospace components and services from India,” he said.
The agreement will offer the opportunity for Indian aerospace is not just in assemblies, but in lifecycle sustainment.
Pavan G Ranga, MD & CEO, Rangsons Aerospace, said: “Combined with the tariff reset to 18% and policy support for aircraft-part manufacturing for MRO, this can accelerate supplier tie-ups in avionics LRUs, wire harnesses, precision machining, testing/qualification and MRO spares, helping Indian firms move up the certification-led value chain.”