India is eyed as one of the fastest growing aviation markets in the world backed by strong policy push from the Narendra Modi government. The growing overseas investments and new players investing in aerospace and aviation has given a huge boost to the aerospace sector in this country. In this backdrop, the Centre is urging aircraft manufacturers like Boeing and Airbus to set up their independent final assembly lines in India to manufacture a complete indigenous aircraft in-house. Boeing India Head Salil Gupte has taken a diplomatic stand. “We need more orders from India before the company considers setting up a final civil aircraft assembly line (FAL) in the country,” he said on the sidelines of Aero India 2025, currently underway in Bengaluru. It requires many more airplanes than are being bought in India today, he added.

This statement by Boeing India head is a setback for India’s hopes of opening a FAL in the country.

As per the data by Cirium, Boeing currently has a backlog order of about 1800 aircraft from India’s leading domestic airlines like Air India and IndiGo. Looking at the number, one wonders how many more orders does Boeing need to set up their manufacturing unit in India?

Gupte said that the company will keep a close eye on the evolving market in India. “In the meantime, it is all about building stepwise capability to get up to that point," he noted while affirming Boeing's strong commitment to Indian aerospace sector.

Boeing has, in the past, offered to assemble defence aircraft, such as its F/A-18 jets, in India. But the volume required for final assembly of commercial airplanes is far greater than that required for defence, and a viable business case would require a large regional market, the according to Boeing.

Early last year, Prime Minister Narendra Modi said India will not have to wait too long for a Boeing that is designed and manufactured in the subcontinent.

"As the market evolves, we continue to assess the feasibility of co-development and co-production opportunities when the time is right, ensuring we have a robust ecosystem to support them," Boeing added on

Last week, Boeing said it expects Indian and South Asian airlines will add 2,835 commercial aircraft to their fleet over the next 20 years, a four-fold increase over current levels.

Gupte said final assembly was less than 10% of the value proposition of an airplane, adding that the "real money" is in everything else that is being done to get up to that stage.

Boeing sources products and services worth $1.25 billion from India annually from a network of more than 300 suppliers, according to its website. The company employs about 7,000 people in the country.

The company's joint venture with India's Tata Group produces AH-64 Apache helicopter fuselages and 737 aircraft vertical fin structures for customers worldwide.

Gupte said the Indian government needs to provide incentives to suppliers to bring down the cost of capital in India to help expand the aerospace supply chain.

"We had very candid conversations (with the civil aviation ministry) and they are willing to take those conversations forward with other departments," he said.