Historic agreement: PM Modi, Biden hail landmark Air India-Boeing deal
What's the story
Prime Minister Narendra Modi and United States President Joe Biden spoke on the phone on Tuesday and hailed the landmark deal between Air India and Boeing as a "shining example" of India-US partnership. Under the agreement, Air India will buy 220 planes from Boeing for $34 billion, which will be manufactured in the US. It will also buy 250 Airbus aircraft for $46 billion.
Context
Why does this story matter?
PM Modi recently said that India will become the third largest aviation market in the future and the growing sector will need more than 2,000 aircraft in the next 15 years. India is looking at catapulting itself among the ranks of the economic bigwigs, and the increasing partnership between India and the US is a step in that direction.
Statement
India-US partnership boosted growth in all domains
The Prime Minister's Office (PMO) released a statement that said that PM Modi expressed satisfaction over the growing mutual cooperation between both countries. The India-US Comprehensive Global Strategic Partnership "has boosted robust growth in all sectors," it said. The statement added that Modi also invited other US companies to make use of the opportunities created by India's expanding civil aviation sector.
White House
This deal would create 1 million jobs across US: Biden
Biden also praised the historic agreement, telling Modi that it will help create around a million jobs across 44 states in the United States, and that many workers without college degree will be able to find work. He also discussed confronting common global challenges and ensuring a secure future. A White House statement said the announcement was reflective of the strength of India-US ties.
Ties
Partnership in space, semiconductors, defense sectors discussed
Both leaders further committed to working together more, and in groups such as the Quad—the Quadrilateral Security Dialogue (QSD) between Australia, India, Japan, and the US. They also welcomed the recent first meeting regarding the Critical and Emerging Technologies (iCET) in Washington, DC. They discussed bilateral cooperation in the domains of space, semiconductors, supply chains, defense co-production and co-development, and knowledge and innovation ecosystems.
Agreement
Biggest-ever purchase in commercial aviation history: Air India
Under the deal, Air India will buy 190 B737 MAX, 20 B787, and 10 B777X aircraft from Boeing. There will be an option to buy an additional 70 aircraft, bringing the total value of the deal to $45.9 billion. Air India called it the biggest-ever purchase in commercial aviation history. With this revamp, it is looking at re-establishing itself as a world-class airline.