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Boeing revises India aircraft forecast to 1,850 new Jets over 20 Years

Boeing Co expects Indian airlines to order 1,850 new aircrafts worth $265 billion over the next 20 years

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Visitors look at models of Boeing aircrafts at the Aviation Expo China 2015, in Beijing, China, in this September 16, 2015 Image source: REUTERS/Jason Lee/Files
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  • In March 2016, the company had forecasted that demand from India would add up to orders for 1,740 planes over 20 years
  • Boeing mentioned it has more than 85 percent share of the wide-body airplane market in India
  • LCCs dominate Indian skies and account for more than 60 percent of the flights in the country

India’s commercial aerospace market has made significant headway as they see an upward curve in the demand of new aircrafts.

Boeing Co (BA.N) said on Tuesday, July 19, it expects Indian airlines to order 1,850 new aircraft worth $265 billion over the next 20 years, up from an earlier forecast, thanks to the new aviation rules that the manufacturer said will boost demand.

In March 2016, the company had forecasted that demand from India would add up to orders for 1,740 planes over 20 years.

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“India continues to have a strong commercial aerospace market and the highest domestic traffic growth in the world,” said Dinesh Keskar, senior vice president, Asia Pacific and India sales at Boeing Commercial Airplanes.

Dinesh Keskar, Senior Vice President, Asia Pacific and India sales Boeing Commercial Airplane. Image source: www.thehindubusinessline.com
Dinesh Keskar, Senior Vice President, Asia Pacific and India sales Boeing Commercial Airplane. Image source: www.thehindubusinessline.com

“With the new aviation policies in place, we even see greater opportunities, and remain confident in the market and airlines sector in India,” Keskar said.

Last month, in June in India overhauled rules governing its aviation industry, liberalising norms for domestic carriers to fly overseas and spreading the country’s air travel boom to smaller cities by capping airfares and opening new airports.

Boeing said in an email that it forecasts single-aisle planes, such as the next generation 737 and 737 Max, to make up the bulk of new deliveries, with India likely to need about 1,560 such aircraft.

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Boeing says it has more than 85 percent share of the wide-body airplane market in India, while competitor Airbus (AIR.PA) sells the bulk of small planes preferred by low-cost carriers (LCCs) such as InterGlobe Aviation’s (INGL.NS) IndiGo.

LCCs dominate Indian skies and account for more than 60 percent of the flights in the country.

Boeing expects worldwide demand for 39,620 aircraft over the next 20 years, putting India’s share of the total at less than 5 percent. With that being said, Boeing still maintains a  bullish outlook for the country’s commercial aerospace market. (Reuters)

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All You Need To Know About India’s Strategic Chabahar Port

The Chabahar Port is a seaport in Chabahar, which is on the Gulf of Oman, near Iran-Pakistan border.

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Chabahar Port is of great international significance in terms of trade, especially for India. Wikimedia Commons
Chabahar Port is of great international significance in terms of trade, especially for India. Wikimedia Commons

By Ruchika Verma

  • The Chabahar Port is of great strategic importance for India
  • It is in Iran and is being built and operated by India
  • This port will increase India’s trade with Central Asia and Europe

The Chabahar Port is a seaport in Chabahar, which is on the Gulf of Oman, near Iran-Pakistan border. Chabahar is the trans-shipment and logistics hub for the Makran Coast and Baluchistan province of Iran.

Chabahar Port is built and operated by India. Wikimedia Commons
Chabahar Port is built and operated by India. Wikimedia Commons

The tension between India and Pakistan is nothing new. There are several instances where both the countries have tried to obstruct each other’s political or economic agendas. This obstruction, along with other strategic reasons, resulted in the India and Iran’s deal on the Chabahar Port, which is crucial because of several reasons.

Here are few things about it you may not have known before :

  • Under the Trilateral Transit and Transport Agreement of 2016, the Chabahar port is the gateway to the Transport Corridor between India, Iran and Afghanistan, which allows multi-modal goods’ and passengers’ transport.

Also Read: India and Iran sign agreement to develop Chabahar Port

  • The agreement also states that India will develop and operate two berths in the first phase of the port. The contract is for 10 years and extendable. This time period excludes the first two years as they will be used for construction.
Chabahar Port will make India's trade with Afghanistan easier. Wikimedia Commons
Chabahar Port will make India’s trade with Afghanistan easier. Wikimedia Commons
  • The Chabahar Port’s first phase, which was developed by India, and inaugurated by Iran on 4th December 2017, is of great strategic importance as it makes it easier for India to conduct trade with Central Asia and Europe.
  • Iran’s Chabahar port is also important for India’s trade because of Pakistan’s reluctance in allowing India to send goods to Iran and Afghanistan through its land territory.

Also Read: Gwadar Port: China Turning Pakistan Port Into Regional Giant 

  • The development of Chabahar Port will increase the momentum of the International North-South Transport Corridor whose signatories include India, Afghanistan and Russia. Iran is the key gateway in this project. It will improve India’s trade with Central Asia as well as Europe.
    The Chabahar Port has also reduced Afghanistan’s dependence on the transit road, which went through Karachi. Now, trade can be conducted via Chabahar Port too. Islamabad has accused India of trying to use this development as a means to destabilise Pakistan.

    The Chabar Port is the said to be the counter to the Gwadar Port. Wikimedia Commons
    The Chabar Port is the said to be the counter to the Gwadar Port. Wikimedia Commons
  • The Chabahar Port also acts as a counter to the barely 100 km away, Gwadar port in Pakistan, which is developed by China. However, Iran has defended that Chabahar is not a rival to Gwadar and Pakistan is invited to join in its development.
  • In October 2017, India sent its first shipment of wheat to through Chabahar to Afghanistan, in order to test the viability of the route.
  • India will also construct a 900-km Chabahar-Zahedan-hajigak railway line that will connect Port of Chabahar to Hajigak in Afghanistan. It will also connect Mashad in the north, providing access to Turkmenistan as well as northern Afghanistan.This project is worth $1.6 billion.

    India will supply $400 million worth of steel rails to Tehrain. Wikimedia Commons
    India will supply $400 million worth of steel rails to Tehran. Wikimedia Commons
  • It is being said that India will supply $400 million of steel rails to Tehran. There are also possibilities of setting up a fertilizer plant through a joint venture with the Iranian government.