President and Managing Director of Airbus India and South Asia, Jurgen Westermeier, hailed the framework for the interim Bilateral Trade Agreement (BTA) between India and the United States. He called it a "runway for Indian suppliers to scale globally".
Recently, both countries released a joint statement on BTA, citing that the United States will remove tariffs on certain aircraft and aircraft parts from India, which were imposed to address national security threats. In Westermeier’s view, this framework between India and the US will aid foreign original equipment manufacturers (OEMs) in diversifying their sourcing strategies.
"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."
"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 joint statement further says that 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.
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