New Delhi

Aircraft manufacturer Boeing on Saturday said the interim trade agreement between India and the United States would unlock multiple growth opportunities, reiterating that the company has consistently supported a zero-for-zero tariff regime for the aerospace and defence sector.

India and the US earlier in the day announced that they had reached a framework for an interim trade pact aimed at boosting bilateral commerce by lowering import duties on several categories of goods.

As part of the framework, tariffs on a range of products — including aircraft parts and generic pharmaceuticals — will be reduced to zero, providing a major push to cross-border trade.

Commenting on the development, Boeing India and South Asia President Salil Gupte said the agreement would act as a catalyst for deeper industrial collaboration between the two countries.

“The deal creates momentum to expand the zero-for-zero tariff principle, which can accelerate industrial growth, enhance national security, and generate win-win outcomes for both India and the United States,” Gupte said in a statement.

He added that Boeing has long advocated duty-free trade in aerospace and defence due to the sector’s far-reaching impact on connectivity, global supply chains and economic growth.

Echoing similar views, Aequs Executive Chairman and Chief Executive Officer Aravind Melligeri said the removal of tariffs would significantly improve cash flows and cost competitiveness across the aerospace supply chain.

Aequs is a key Indian supplier of aerospace components to global manufacturers such as Airbus and Boeing.

“The easing of tariffs will strengthen the operating environment for Indian suppliers and enable deeper integration with US aerospace supply chains,” Melligeri said.

According to industry estimates, global original equipment manufacturers currently source aerospace components and services worth more than USD 2 billion annually from India. Melligeri noted that improved market access under the interim trade agreement could substantially increase India’s share in US aerospace sourcing in the coming years.

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The India-US joint statement also said New Delhi plans to purchase USD 500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years, further reinforcing bilateral economic ties.