NEW DELHI: Aircraft maker Boeing on Saturday said the India-US interim trade agreement will open multifold opportunities and emphasized that the company has always advocated for zero for zero tariff approach for the aerospace and defense sector.
India and the US on Saturday announced they have reached a framework for an interim trade agreement under which both sides will reduce import duties on a number of goods to boost two-way trade.
Under the framework, tariffs will go down to zero on various goods, including generic pharmaceuticals and aircraft parts.
Boeing India and South Asia President Salil Gupte said the agreement opens multifold opportunities.
"This deal creates momentum to extend that principle, which would boost industrial growth, strengthen national security, and deliver win-win opportunities for both countries," he said in a statement.
At Boeing, he said they have always advocated a zero-for-zero tariff approach for the aerospace and defence sector because of its tremendous impact across travel, connectivity, and the global economy.
About the agreement, Aequs Executive Chairman and CEO Aravind Melligeri said the lifting of tariffs will lead to improved cash flows and enhanced cost competitiveness for the supply chain.
Aequs is a leading supplier of aerospace components to various companies, including Airbus and US-based Boeing.
"It will strengthen the operating environment for Indian suppliers and support deeper integration with US aerospace supply chains," Melligeri said in a statement.
Global OEMs (Original Equipment Manufacturers) are sourcing aerospace components and services worth over USD 2 billion yearly from India.
With stronger market access following this trade agreement, India's share of US aerospace parts sourcing is poised to expand in the coming years, Melligeri said.
Meanwhile, the US-India joint statement on Saturday also said that India intends to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.