India’s public sector defense undertaking, Hindustan Aeronautics Limited (HAL) has signed a 10-year manufacturing outsourcing pact with US- based aircraft maker, Boeing co., aimed at bringing more than $1 billion of new aerospace manufacturing work to India.

The pact also includes sharing key Boeing business and manufacturing tools with Hindustan Aeronautics (HAL).

HAL is India's flagship aeronautical company which has 18 units where the Indian Force planes are assembled, overhauled and maintained while, Boeing Integrated Defense Systems is the second largest space and defense business in the world specializing in innovative and capabilities-driven customer solutions.

The agreement, signed in New Delhi by Jim Albaugh, president and CEO of Boeing Integrated Defense Systems, and Ashok K. Baweja, chairman of HAL.

Under the deal, HAL will manufacture sub-systems for Boeing’s wide range of fighter planes like F-15, F-18 Super Hornetts and Apache helicopters. The Boeing would also support HAL in developing manufacturing processes and capabilities needed for the production of hardware for Boeing and/or its subcontractors, a release stated.

Jim Albaugh said, “I am extremely pleased that Boeing and HAL have agreed to work together for the mutual benefit of their companies and countries. The agreement represents an important step in our efforts to build solid long-term partnerships in India to make Boeing products more globally competitive, while allowing HAL to grow and expand its potential market around the world."  

Under the contract, Boeing and HAL will explore business opportunities aimed at transferring work packages to India with an initial value of $10-$20 million annually,” he added.