When was the last time that three developed countries like the US, France and the UK hailed another country for helping with thousands of jobs in their backyard? The largest ever deal in aviation history by Air India for 470 jets worth $115 billion has made that possible and reinforced that India is now at the centre-stage of the world economy.
Government officials pointed to the statements made by the Premiers of the three countries to highlight this and India’s growing influence on the world map. “This purchase will support over one million American jobs across 44 states, and many will not require a four-year college degree,” US President Joe Biden said in a statement after the deal. French President Emmanuel Macron thanked Prime Minister Narendra Modi “for your confidence in France and our industry.” UK Prime Minister Rishi Sunak said the deal will support jobs across the country, grow the economy and “level up the UK.”
Incidentally, this comes at a time when India’s neighbour Pakistan has been cash-strapped and is chasing the International Monetary Fund (IMF) for a bailout of $1.1 billion, which has been delayed since December over Pakistan’s failure to meet the terms.
News agency AP reported that Pakistan is set for big tax hikes in return for the massive IMF bailout. The IMF last month projected that India will be the fastest-growing economy in the world at 6.1%.
Finance minister Nirmala Sitharaman has said the Indian economy is expected to grow at 7% this fiscal. “Post-Covid, India has emerged as the brightest hope in the world on the economy front under PM Modi’s leadership,” an official said.
How the Deal Helps US, France, UK?
Air India has signed a deal with rivals Boeing of the US and Airbus of France to procure 470 jets — splitting the order with 250 jets from Airbus and 220 from Boeing.
The first aircraft to arrive will be 25 brand-new Boeing B737-800s and 6 Airbus A350-900s in the second half of 2023, with deliveries ramping up in 2025 and beyond. “The United States can and will lead the world in manufacturing,” the US president said, terming the Air India-Boeing deal as “historic.”
The French President said “this achievement shows that Airbus and all its French partners are fully dedicated to develop new areas of dedication with India.” French aerospace engine manufacturer SAFRAN will also be setting up its largest MRO facility in India to service jet engines.
The Air India deal is also worth billions of pounds to the UK, the UK government said in a statement. “The agreement announced by the Airbus and Rolls-Royce will support and create new highly skilled jobs in Wales and Derbyshire, helping to boost exports, grow the economy and level up the UK. A significant portion of the manufacturing process for the new aircraft is expected to take place in the UK. The wings will be designed in Filton, and assembled in Broughton –- which is expected to bring an additional 450 manufacturing jobs and more than £100m of investment to Wales. The large A350 aircraft are exclusively powered by Rolls-Royce XWB engines, which are assembled and tested in Derby,” the UK government said in a detailed statement.
The UK also said India is a major economic power, projected to be the world’s third largest economy with a quarter of a billion middle class consumers by 2050. “This is a significant win for the UK’s world-leading aerospace sector and one which will help to secure thousands of highly skilled jobs across the country and drive economic growth,” UK’s Business and Trade Secretary Kemi Badenoch MP has said.
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