India Ready For Airbus, Boeing To Set Up Jet Assembly Plants: Report

Airbus SE EADSY and Boeing Co BA are under increasing pressure to build jetliner plants in India.
India's civil aviation minister told Reuters the "time has come" to serve its surging demand with domestically produced aircraft.
According to Reuters, Jyotiraditya Scindia stated that the time was right for both jetmakers to "leap of faith" as India's rapidly expanding aerospace industry hits an "inflection point" - highlighted by plans to assemble Airbus C295 military transport planes locally in India.
Both Airbus and Boeing have emphasized the scale and technology of current investments in India. An Airbus-Tata alliance aims to construct 40 C295 planes in Gujarat.
Related: Boeing, Airbus Chase Highly Proficient Indian Talent To Tap The Recovery Led Boom At Competitive Costs
Tata-controlled Air India placed record orders for 470 aircraft from Airbus and Boeing last month, and reports claim that IndiGo, India's largest airline, is discussing 500 more aircraft.
Reuters added both Airbus and Boeing seem to have resisted India's calls for civil final assembly lines (FAL). Boeing buys $1 billion annually in parts and services from India, and Airbus claimed to spend $700 million.
Also Read: Airbus Expands Its Workforce To Boost Jet Manufacturing: Report
Recently, Boeing announced plans to build a facility in India where 737 passenger planes could be converted into freighters.
Price Action: BA shares are trading lower by 1.42% at $195.08 premarket on Friday. EADSY closed lower by 0.80% at $32.16 on Thursday.

Market News and Data brought to you by Benzinga APIs

Get Our Top Trade Ideas Delivered Daily - 65% Off Now

Get Our Top Trade Ideas Delivered Daily - 65% Off Now

Comments