Airbus & Rolls-Royce To Supply Aircraft, Engines To Indian Airlines In £5-Billion Agreement
The firms are among 26 other UK-based companies that have clinched fresh business deals in India under the landmark free trade pact between India and the UK.
In a major development for the aviation industry under the landmark free trade agreement signed between India and the United Kingdom on Thursday, Airbus and Rolls-Royce are set to begin delivering aircraft and engines to leading Indian airlines under contracts valued at £5 billion.
Over 50% of Airbus planes are equipped with Rolls-Royce engines. This profitable agreement is expected to not only support India’s aviation growth but also help maintain employment at several company locations in the UK — specifically in Filton, Broughton, and Derby. Airbus is headquartered in Blagnac, France, whereas Rolls-Royce’s base is in Derby, UK.
This agreement is part of a broader success involving 26 British firms that have landed new business ventures in India. According to Deccan Chronicle, International Aerospace Manufacturing Private Limited (IAMPL) — a joint initiative between Rolls-Royce and Hindustan Aeronautics Limited (HAL) — is expanding operations at its Hosur facility with an infusion of £30 million.
The contract will additionally enable India to access next-generation aircraft and high-efficiency engines like the Rolls-Royce Trent XWB, improving air connectivity and contributing to India’s vision of scaling its commercial aviation framework.
The free trade pact (FTA) is designed to remove or lessen tariffs on goods and services exchanged between the two countries. It is projected to push bilateral trade to USD 120 billion by 2030 and generate thousands of new jobs in both nations.
As per NDTV, other UK firms now investing in India include Carbon Clean, a provider of carbon capture technology, which will inject £7.6 million into a new Mumbai office. Occuity, a British medical tech firm known for handheld, non-contact optical devices for eye diagnostics, has finalised a £74.3 million export arrangement with India’s Remidio Innovative Solutions. Johnson Matthey, a specialist chemicals manufacturer, has locked in contracts exceeding £20 million, the report added.
Furthermore, global business consultancy and event services company The Marcus Evans Group plans to launch a new branch in Mumbai, projecting an export/investment volume of £69 million over the next five years, NDTV reported.
