- Airbus SE (OTC:EADSY) and Boeing Co (NYSE: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.
