India is reportedly prepared to place orders with Boeing for aircraft valued at up to $80 billion, signaling a major expansion of the US-India trade relationship. This announcement was made by India's Commerce and Industry Minister, Piyush Goyal, and comes on the heels of a recently announced trade deal between the two countries.

Goyal indicated that the demand for aircraft alone is in the range of $70-80 billion, but the total value could climb to over $100 billion when factoring in the cost of engines and spare parts. He expects a joint statement regarding the trade deal to be released within 4-5 days, with a formal agreement targeted for March.

This potential aircraft order would be a significant boost for Boeing, supporting its medium-term deliveries and supply chain utilization. For the markets, this would be a near-term positive development for the US aerospace industry.

The proposed trade package, which includes claims of India purchasing $500 billion worth of US goods, is facing scrutiny and skepticism regarding its feasibility. The deal also has cross-currents for energy flows and crude pricing if it leads to a shift in India's crude sourcing mix.

India is currently the world's third-largest civil aviation market, driven by rising disposable incomes, urbanization, and an increasing preference for air travel. The country's aviation sector is rapidly expanding, with passenger traffic reaching 96.54 million during April-July 2025. To support this growth, India's airport network has grown from 74 airports in 2014 to 162 as of September 2025. Indian airlines are estimated to add 600 planes to their fleets in the next 5 years.

Air India, a major player in the Indian aviation market, has been actively expanding and modernizing its fleet. In January 2026, Air India ordered 30 additional Boeing 737 MAX jets. This order expands Air India's total orders with Boeing to nearly 200 airplanes across the company's single-aisle and widebody airplane families. In February 2023, Air India announced an order for 470 aircraft from Airbus and Boeing at a cost of $70 billion, with deliveries beginning in late 2023. As of October 2025, Air India operates 189 aircraft, including Airbus A319, A320, A320neo, A321, A321neo, A350, as well as Boeing 777 and Boeing 787 models.

In addition to the potential Boeing order, the trade deal between the U.S. and India anticipates Washington cutting duties on Indian exports to 18% from 50%. In return, India would lower tariffs on US goods and is expected to purchase approximately $500 billion worth of US products over the next five years. These products include Boeing aircraft valued at $70–80 billion. The purchases could reach approximately $100 billion when including the engines and spare parts, as well as increased purchases of US energy and chips.

This potential agreement underscores the strengthening economic ties between India and the United States and highlights India's growing importance in the global aviation market.