Our 'Make in India' journey is far from complete: Boeing on expansion plans

Issued after the interview, the India-US joint statement from PM Modi's visit to Washington states that both countries expect the procurement of six more Boeing P-8I aircraft to be completed this year

American aerospace giant Boeing has expanded its annual sourcing from India to $1.25 billion, a five-fold increase from $250 million a decade ago. While the India-US joint statement issued on Thursday stated that both countries expect to complete the procurement of six additional Boeing P-8I aircraft for the Indian Navy this year, the company’s focus during the Tuesday interview was on securing long-term logistics contracts in India. Against this backdrop, TORBJORN SJOGREN, Vice-President and General Manager of Government Services at Boeing Global Services, discusses the planemaker’s future and commitment to India with Bhaswar Kumar at Aero India 2025 in Bengaluru. Edited excerpts:

 

At the CEOs Roundtable during Aero India, Make in India and Make for the World were key focus areas. You already contribute to this—do you have plans to expand further, for example, over the next five years?

 

Torbjorn Sjogren: Yes, absolutely. Our years-long journey in India is far from complete. We will continue expanding our presence and outsourcing from India. Our defence Maintenance, Repair, and Overhaul (MRO) operations, collaboration with Indian micro, small, and medium enterprises (MSMEs), and engagement across both commercial and defence sectors are integral to our strategy. Given these efforts, I fully expect our capacity and sourcing from India to grow further. Even if the government changed its stance on Make in India tomorrow, our commitment would remain.

 

Do you have any numbers to quantify that?

 

Torbjorn Sjogren: No, I do not have those numbers at present. However, I am sure you are already aware of the significant scale of Boeing’s presence in India. We collaborate with over 300 suppliers in India, of which over 25 per cent are MSMEs, sourcing over $1.25 billion annually—with more than 70 per cent from manufacturing. This figure was approximately $250 million a decade ago. Boeing Defence India (BDI) was established in 2017. We have partnered with AI Engineering Services Limited (AIESL) and Air Works for the MRO of defence platforms used by the Indian armed forces, including the Indian Navy's P-8I maritime patrol and reconnaissance aircraft. We have a large engineering campus and a joint venture with Tata Group—Tata Boeing Aerospace Limited (TBAL)—which manufactures fuselages for AH-64 Apache helicopters and vertical fin structures for the 737 airliner family. We employ close to 7,000 people in India, with over 13,000 working across our supply chain partners. India operates 11 C-17 Globemaster III strategic airlifters, 22 Apache helicopters (with six more on order), 15 CH-47 Chinook heavy-lift helicopters, three VVIP aircraft (737 airframe), two Head of State aircraft (777 airframe), and 12 P-8Is—all Boeing platforms. We anticipate further sales of Boeing military products. However, our opportunity in India extends beyond selling products—it is about developing capabilities that integrate into Boeing’s global operations.

 

What is Boeing’s outlook on future contracts? 

(Responding to the mention of additional P-8I aircraft in the India-US joint statement, Boeing said, “We will continue to support our customers on their needs and fleet requirements. We will have to defer to our customers for any additional information.”)

 

Torbjorn Sjogren: Securing long-term contracts allows us to increase investment. The next step is to secure more of them. One area where we have succeeded in India but still see room for improvement is with performance-based logistics (PBL) contracts for military platforms. Products like the C-17 offer high military readiness, predictability, and affordability. We achieve this through long-term PBL contracts, where we commit to maintaining operational platform availability over the next five years.

 

We have done well in this regard with the C-17, which is why the readiness of the Indian Air Force's (IAF's) fleet is where it is today. Currently, we are in negotiations with both the IAF and the Navy for additional contracts, including five-year Aftermarket Services Agreements (ASAs) for the Apache and P-8I. The negotiations have progressed over time, and we are eager for these agreements, as they will further strengthen our journey in India.

 

This order visibility will enable us to approach our local supply chain with confidence, knowing we will likely need a certain number of repairs and spares for specific parts over the next five years, allowing us to source them locally. Once the contracts are signed, the capacity we build here will allow regional customers to access parts and repairs in India. While I am not suggesting we will create a regional or global MRO hub, we will create much-needed capacity here.

 

Are you confident about securing these contracts?

 

Torbjorn Sjogren: I am confident the Chinook and Apache contracts will come through this year, though I cannot specify which quarter. The P-8Is will likely take a bit longer.