The order, for 220 Boeing and 250 Airbus aircraft over several years, will benefit both Airbus and engine supplier Rolls-Royce, the government said.

The Department for Business and Trade (DBT) said the wings, designed by Airbus at Filton near Bristol, will be assembled at the company's Broughton site in North Wales.

It is understood that Rolls-Royce will provide engines for at least 40 of the aircraft.

They are assembled and tested in Derby.

In a statement, Prime Minister Rishi Sunak said: "This landmark deal between Air India, Airbus and Rolls-Royce demonstrates that the sky's the limit for the UK's thriving aerospace sector.

"The UK is already a top investment destination, and by building trade ties with growing economic powers like India we will ensure UK businesses remain at the forefront of global growth and innovation."

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Business and Trade Secretary Kemi Badenoch said the agreement was "another big step" as the UK seeks to negotiate a free trade deal with India.

"This is a significant win for the UK's world-leading aerospace sector and one which will help to secure thousands of highly skilled jobs across the country and drive economic growth," she said.

"It's a shot in the arm for UK exports as we aim to sell £1trn of goods and services a year to the world by the end of the decade."