During Indian Prime Minister Narendra Modi’s recent visit to the United States, one of the key agenda items was a manufacturing deal between General Electric (GE) and India’s state-owned Hindustan Aeronautics Limited (HAL) for fighter jet engines. The deal is expected to be worth around $2.5 billion and will see GE manufacture and supply engines for India’s Tejas fighter jets.
The Tejas is a light combat aircraft that was developed by HAL and is currently in service with the Indian Air Force. The aircraft is powered by a GE F404 engine, which is also used in the U.S. Navy’s F/A-18 Hornet fighter jet. The new deal will see GE manufacture and supply the more powerful F414 engine for the Tejas, which will give the aircraft greater range and payload capacity.
The deal is significant for both GE and India. For GE, it represents a major opportunity to expand its presence in India’s defense sector, which is expected to grow rapidly in the coming years. India is currently one of the world’s largest importers of defense equipment, and the government has set a target of achieving 70% self-reliance in defense production by 2025.
For India, the deal is part of a broader effort to modernize its armed forces and reduce its dependence on foreign suppliers. The country has been investing heavily in defense research and development in recent years, and the Tejas is one of several indigenous defense projects that are currently underway.
The manufacturing deal between GE and HAL is also expected to create jobs in both countries. GE has committed to investing $200 million in a new manufacturing facility in India, which will produce components for the F414 engine. The facility is expected to create around 1,000 jobs in India.
Overall, the deal between GE and HAL is a positive development for both companies and for India’s defense sector. It represents a significant step forward in India’s efforts to develop its own defense capabilities and reduce its dependence on foreign suppliers. It also highlights the growing importance of the U.S.-India defense partnership, which has been strengthened in recent years by a series of high-level visits and joint military exercises.
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- Source: Plato Data Intelligence.