India-US trade deal a 'runway for suppliers to scale': Airbus India

Airbus India head Jurgen Westermeier praised the interim India-US trade pact framework, calling it a 'runway for Indian suppliers'. The deal, removing US tariffs on Indian aircraft parts, is seen as a boost for the global aerospace supply chain.

President and Managing Director of Airbus India and South Asia, Jurgen Westermeier, on Sunday, hailed the framework for the interim Bilateral Trade Agreement (BTA) between India and the United States, calling it a "runway for Indian suppliers to scale globally". According to a joint statement from the Commerce Ministry and the White House, the United States will remove tariffs on certain aircraft and aircraft parts from India, which were imposed to address national security threats.

Airbus Welcomes Trade Framework

Westermeier said the framework will help foreign original equipment manufacturers (OEMs) diversify their sourcing strategies. He said, "The announcement of a framework for an interim agreement between India and the United States on reciprocal, mutually beneficial trade is a welcome development. This initiative is not merely about reducing tariffs; it is about clearing the runway for Indian suppliers to scale globally. As a force for global good, the aerospace supply chain is inherently international and thrives on the free and efficient flow of materials and services across borders. The proposed framework will enable foreign OEMs to de-risk and diversify their sourcing strategies."

He welcomed the reduction in tariffs in the aerospace manufacturing sector. "For capital-intensive sectors such as aerospace manufacturing, certainty in tariffs and predictability in policy are critical for sustained growth. I hope that reduced tariffs will allow Indian suppliers to integrate more seamlessly into the global aerospace supply chain," Westermeier added.

Details of the Interim Agreement

The US and India announced in a joint statement that they have reached a framework for an Interim Agreement on reciprocal, mutually beneficial trade (the Interim Agreement) and have agreed on its terms.

According to the joint statement, the United States will apply a reciprocal tariff rate of 18 per cent on goods originating in India, including textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, home decor, artisanal products, and certain machinery. Subject to the successful conclusion of the Interim Agreement, the US will remove the reciprocal tariff on a wide range of goods identified in the Potential Tariff Adjustments for Aligned Partners Annex to Executive Order 14346 of September 5, 2025 (Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements), as amended, including generic pharmaceuticals, gems and diamonds, and aircraft parts. (ANI)

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