Boeing to invest US$180m in Karnataka

The American aerospace giant will set up a new facility to manufacture aircraft components and subsystems, employing around 2,300 people

December 12, 2017

The project, which will be set up on the outskirts of the city of Bengaluru, was given a go-ahead by the State Government of Karnataka

Operating in the country for nearly eight decades, Boeing’s clientele includes leading airliners such as Air India, Jet Airways and SpiceJet

India’s fast-growing aviation sector, which is targeting vast untapped potential of the domestic market, has attracted foreign companies

Currently the world’s ninth largest market with annual passenger traffic of 224 million, India is expected to become the world's largest by 2030

American aerospace giant Boeing Co has won approval to set up a new manufacturing facility in India’s southern state of Karnataka to build aircraft components and subsystems.The company plans to invest around US$180 million in the plant that would cater to the global aviation industry.  The project, which will be set up on the outskirts of the city of Bengaluru, was given a go-ahead by the State Government of Karnataka on December 11th.Once operational, the facility will provide 2,300 direct jobs and many more associative jobs. Boeing has operated a research and development centre in the city for a decade.

Boeing has been operating in India’s aviation market for nearly eight decades. The company’s clientele in the country includes the leading commercial aviation companies such as Air India, Jet Airways and SpiceJet. Boeing has also been partnering with the Indian Air Force since the 1940s . Boeing operates its subsidiaries, Jeppesen—a provider of flight navigation solutions—from Hyderabad, and Continental Data Graphics (CDG) from Chennai. Boeing has more than 500 employees in India, with over 3,500 people working on its supply–chain and around 30 suppliers across manufacturing, engineering and IT sectors.

India’s fast-growing aviation sector, which is targeting vast untapped potential of the domestic market, has attracted foreign companies such as Boeing to expand their presence in the country. Foreign interest has also been boosted by the Indian Government’s initiatives such as Make in India, Startup India, Skill India and Digital India that are aimed at improving the scope of investment. In 2016, India’s aviation industry saw total passenger traffic of 224 million – the highest traffic growth in the world. Currently, the world’s ninth largest market, India is expected to become the world’s largest by 2030.

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