US Set to Allow GE to make Engines in India for Military Jets'

The Biden administration is set to approve a deal that would permit General Electric Co to manufacture jet engines for Indian military aircraft within India, Reuters reported quoting sources.

The agreement finalizing the joint production of the engines is expected to be signed and announced during PM Narendra Modi's official state visit to the United States on June 22. This would be Modi's sixth visit to the US since taking over as the PM in 2014. The decision has not been made public, hence the individuals spoke on the condition of anonymity.

According to an ANI report, India is evaluating proposals from American and French firms for its 'Made in India' aircraft including the LCA Mark 2 and the Advanced Medium Combat Aircraft.

The evaluation process for the proposals from both American and French firms is currently underway. Officials have highlighted that key considerations for these proposals include the level of technology transfer and pricing.

The United States is aiming to strengthen its relationship with India and views enhanced military-to-military and technological ties with India as a significant counterbalance to China's regional dominance. India, the world's largest importer of arms, relies heavily on Russia for almost half of its military supplies, having procured fighter jets, tanks, nuclear submarines, and an aircraft carrier from Russia over the years.

The deal is yet to be finalized and will require notification to the US Congress, as per two individuals familiar with the agreement, Reuters said in its report. The United States maintains stringent controls over the sharing or sale of domestic military technology to other countries.

Earlier this year, the United States and India announced a broader joint partnership intended to promote collaboration between companies from both nations, particularly in the areas of military equipment and cutting-edge technology.

Although GE has offered some technology transfer to HAL, which will act as a licensed manufacturer for the engines, India is seeking greater technology sharing, according to one individual knowledgeable about the discussions. India is eager to acquire the knowledge necessary for indigenous aircraft engine production, as it currently possesses the capability to manufacture fighter jets domestically but lacks the capacity to produce the engines required to power them.

HAL is utilizing a lighter GE engine for the production of 83 light combat aircraft for the Indian Air Force. However, India plans to manufacture over 350 fighter jets for its Air Force and Navy in the next two decades, potentially utilizing the GE 414 engine.