Boeing has announced that it will shape its Indian operations according to its US business structure in a bid to win a share of the $31bn military and civil aerospace industry.

The company plans to expand its manufacturing base, create subsidiaries and reinforce its research and development programmes in the country.

Boeing Integrated Defense Systems (IDS) India vice-president and country head Vivek Lall told India’s Business Standard that the India business would be a microcosm of all its businesses in the US.

“In the last six years, we expanded our presence to nine locations from one in 2003, increased executive strength and launched R&D centres in India. The country is an important market for Boeing outside the US,” said Lall.

Through an offset clause, Boeing will be required to engage in some local manufacturing and transfer of technologies to Indian subsidiaries or partners. The amount could be as high as 30%-50% of earnings and will depend on the value of the contracts awarded to the company by the Indian government.

Boeing will also develop its technology centre in Bangalore as a centralised R&D division for its major business units and set up virtual warfare centres across the country, two of which already exist in Bangalore and Delhi.

The airframe manufacturer also plans to enter into new partnerships with several private firms, including Mahindra & Mahindra for aerospace manufacturing.

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Boeing is one of the competitors aiming to win the estimated $12bn Indian Air Force contract for multicombat jets, for which flight trials are expected begin this week.