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Airbus India Chief Hails US Trade Deal as "Runway" for Global Suppliers

The President and Managing Director of Airbus India and South Asia, Jurgen Westermeier, has welcomed the framework for an interim bilateral trade agreement between India and the United States. He stated the deal will reduce tariffs and provide critical policy predictability for capital-intensive sectors like aerospace manufacturing. The agreement will enable foreign original equipment manufacturers to de-risk and diversify their sourcing strategies by integrating Indian suppliers more seamlessly. According to a joint statement, the US will apply reciprocal tariffs on some Indian goods but remove them on others, including aircraft parts, following the deal's conclusion.

Key Points: Airbus India MD Welcomes India-US Trade Deal Framework

  • US to remove tariffs on aircraft parts from India
  • Deal provides policy certainty for aerospace sector
  • Aims to diversify global supply chains
  • Reciprocal tariff framework on other goods agreed
2 min read

Airbus India, South Asia MD Jurgen Westermeier hails India-US trade deal framework

Airbus India's Jurgen Westermeier praises the India-US interim trade agreement, saying it will help Indian aerospace suppliers integrate into global supply chains.

"This initiative is not merely about reducing tariffs; it is about clearing the runway for Indian suppliers to scale globally. - Jurgen Westermeier"

New Delhi, February 8

President and Managing Director of Airbus India and South Asia, Jurgen Westermeier, on Sunday, hailed the framework for the interim Bilateral Trade Agreement 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.

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.

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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Reader Comments

S
Sarah B
As someone working in the aerospace supply chain in Bengaluru, this "runway" metaphor is spot on. Policy certainty is everything for long-term investment. This deal could be a game-changer for MSMEs trying to become global suppliers.
R
Rohit P
Good step, but the 18% reciprocal tariff on our textiles and leather goods is concerning. Our artisans and small manufacturers in places like Kanpur and Tiruppur need protection too. Hope the final agreement balances this better.
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Priya S
Finally! Reducing tariffs on aircraft parts is a big deal. This will make our MRO (Maintenance, Repair, Overhaul) industry much more competitive. Hyderabad and Nagpur aviation hubs will benefit greatly.
M
Michael C
Interesting to see the focus on de-risking supply chains. After the global disruptions, companies are looking at India as a stable partner. This framework seems like a practical, win-win approach for both economies.
K
Kavya N
The inclusion of generic pharmaceuticals and gems is crucial. We are world leaders in these sectors. If this deal helps our pharma companies scale in the US market without tariff barriers, it will be a massive boost for 'Make in India'.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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