India’s $67 Billion Boeing Bet Could Rewrite the US Trade Playbook

Indian negotiators are preparing to spotlight their growing list of Boeing (BA, Financial) aircraft orders as a strategic asset in high-stakes trade talks with the US. According to people familiar with the discussions, India plans to frame the $67 billion in combined orders from Air India, Akasa Air, and SpiceJet as a meaningful offset to its $47 billion trade surplus with Washington. With deliveries for 506 planes stretched over several years, officials believe these private sector deals could help shield Indian exports from steep tariffs once the 90-day pause on reciprocal tariffs expires in July.

The timing is critical. Prime Minister Narendra Modi has already committed to ramping up US imports like crude oil, LNG, and defense equipment, but negotiators now see aviation as a fresh lever. Air India, after its acquisition by the Tata Group, is moving quickly to absorb Boeing jets originally intended for Chinese carriers and is actively discussing new orders. Meanwhile, market dynamics are quietly shifting: IndiGo, India’s largest airline traditionally aligned with Airbus, has started leasing Boeing 787s for key international routes. Boeing’s presence in the South Asian aviation market is deepening at an important moment when the White House is seeking visible wins on trade rebalancing.

India’s strategy mirrors moves seen in Vietnam, where aircraft deals are also being used as diplomatic currency. However, New Delhi’s effort to bundle private commercial orders into broader trade concessions—alongside previously announced tariff cuts on US products like Bourbon whiskey and Harley-Davidson motorcycles—marks an aggressive pivot. Investors should monitor this closely: a favorable trade outcome could drive new growth paths for Boeing, strengthen US-India economic ties, and set the tone for future trade negotiations across Asia’s fastest-growing economies.