Monday, December 05, 2005

Outsourcing: India to reap $3 billion in aerospace works

Boeing Co and Airbus Industries will outsource aerospace systems works valued over $3 billion to India as part of the deal to supply 111 aircraft to Air India and Indian Airlines.

A ministry official said: "This time the government has made an offset clause mandatory for the aerospace firms abroad if they sell aircraft to India. It should be at least 30 per cent of the total value of the deal. Since the total value of both the airlines' aircraft purchase is about $9.3 billion, Indian companies will be getting at least $3.1 billion offset order".