As the first step to going global, the city-based Paramount Airways will buy 10 A321 aircraft for $1.5 billion from European aircraft manufacturer Airbus.
An agreement signed at the ongoing Paris Air Show also provides the Indian carrier airline an option for purchasing 10 more aircraft, Paramount said Friday.
The European Central Bank will fund the purchase.
"Today marks an important and strategic landmark in our expansion plans and in particular our goal to become a leading international carrier," Paramount managing director M. Thiagarajan said.
The carrier is looking at flying to the Middle East and the Far East.
Till now, Paramount's fleet comprised aircraft from Brazilian manufacturer Embraer.