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India and US in Advanced Talks for Fighter Jet Engine Deal and Combat Vehicle Co-Production

  • February 10, 2025
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In a significant development for India’s defence sector, discussions are underway between New Delhi and Washington to finalise key defence agreements, including the co-production of combat vehicles and

India and US in Advanced Talks for Fighter Jet Engine Deal and Combat Vehicle Co-Production

In a significant development for India’s defence sector, discussions are underway between New Delhi and Washington to finalise key defence agreements, including the co-production of combat vehicles and a fighter jet engine deal. As Prime Minister Narendra Modi prepares to meet US President Donald Trump this week, officials from both nations are working on solidifying these agreements, which could mark a pivotal shift in India’s military capabilities and global strategic positioning.

India’s Shift Towards US Defence Collaboration

India has long been the world’s largest arms importer, traditionally relying on Russia for its defence procurement. However, in recent years, the country has been actively diversifying its military suppliers to reduce dependency on a single nation. The ongoing talks with the US align with India’s efforts to enhance domestic production while accessing cutting-edge military technology.

President Trump has consistently advocated for an increase in US arms exports, pushing for fairer trade deals between the two nations. The potential deals, if confirmed, would not only strengthen India’s military but also bolster economic and diplomatic ties between New Delhi and Washington.

Key Components of the India-US Defence Agreement

Fighter Jet Engine Deal with General Electric

One of the most crucial aspects of the negotiations is the finalisation of an agreement between Hindustan Aeronautics Ltd (HAL) and General Electric (GE) for the co-production of fighter jet engines in India. The agreement, which was first discussed in 2023, aims to enhance India’s indigenous defence manufacturing capabilities.

Officials from HAL are expected to meet with representatives from GE and US government officials to finalise the deal by March. This agreement involves the production of the advanced GE-414 engines, which will be used in India’s next-generation fighter jets. The move is expected to significantly strengthen the country’s air combat capabilities and reduce reliance on foreign-made engines.

Co-Production of Stryker Combat Vehicles

In addition to the fighter jet engine deal, India is in advanced discussions to procure and co-produce Stryker combat vehicles, manufactured by General Dynamics. These vehicles, currently used by the US Army, have been demonstrated to Indian military officials, and their potential acquisition is being closely examined.

The plan involves purchasing several hundred Stryker vehicles equipped with anti-tank guided missile systems, with a long-term vision to manufacture them domestically through a state-run enterprise. If finalised, this move will align with India’s broader initiative to strengthen its defence industrial base and create jobs within the country.

Why These Deals Are Crucial for India

1. Strengthening Indigenous Defence Production

India has been making concerted efforts to build a self-reliant defence sector under the ‘Make in India’ initiative. The co-production of fighter jet engines and combat vehicles will enhance India’s defence manufacturing capabilities, reducing dependence on foreign imports.

2. Strategic Partnership with the US

The growing India-US defence collaboration signals a strategic shift in global geopolitics. Strengthening military ties with Washington allows India to counterbalance regional security threats while diversifying its defence procurement.

3. Technology Transfer and Modernization

By collaborating with General Electric and General Dynamics, India will gain access to advanced defence technology. The transfer of knowledge and expertise will help modernise the Indian military, making it more prepared for future conflicts.

Challenges and Roadblocks

Despite the optimistic outlook, several challenges remain in finalising these defence deals:

  • Regulatory and Bureaucratic Hurdles: Defence agreements often require extensive negotiations and approvals from multiple agencies in both countries.

  • Cost and Investment Considerations: Large-scale co-production initiatives require significant financial investment, which must be justified through long-term benefits.

  • Geopolitical Implications: India must carefully balance its longstanding defence relationship with Russia while forging stronger ties with the US.

Future Prospects and Diplomatic Significance

While these defence agreements are not explicitly listed on the agenda for Modi’s upcoming discussions with Trump, they are expected to be a part of broader negotiations covering trade, technology, and security cooperation. These talks reflect India’s commitment to modernising its defence forces and strengthening its position as a key global power.

The India-US defence collaboration is set to grow further, with both nations exploring additional avenues for co-development and technology sharing. If these agreements materialise, they will not only enhance India’s defence readiness but also reinforce strategic ties between the two largest democracies in the world.

As the Modi-Trump meeting approaches, all eyes will be on how these crucial negotiations unfold and what they mean for the future of India’s defence landscape.

Source: businesstoday.in

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