In the new chapter of India-US relationships, the United States Congress has cleared GE Aerospaces agreement with state-owned Hindustan Aeronautics Limited to produce fighter jet engines for the Indian Air Force.According to sources, the deal was struck even before Prime Minister Narendra Modis historic visit to the White House where Modi was accorded a ceremonial welcome before having extensive bilateral talks and a state dinner, GE Aerospace and HAL had signed a memorandum of understanding to produce F-414 jet engines in India for the under-development light combat aircraft (LCA) Mk2. The US Congress also gave its approval to the Biden administration for the defense cooperation between the two nations.This paves the way for the implementation of the agreement with Hindustan Aeronautics Limited (HAL) which includes unprecedented technology transfer, manufacturing of jet engines in India, and licensing arrangements.During Bidens visit to India for the G20 Summit in September, both countries are expected to discuss the next time there is action for this deal.A spokesperson of the State Department refused to comment on the matter and said “We are restricted from publicly commenting on the details of commercial defense trade licensing activities,” according to media reports.Significance of this deal This partnership between the US and India will prove to be a game changer in the bilateral relations between the two countries. HAL Chief CB Ananthakrishnan says that it forms the basis for future indigenous engines that will power military jets. US administration officials have also acknowledged that the GE deal could be a model going forward, as it helps address Indias concerns over tech transfer and co-productionThis deal is also historic because the US treats jet engine technology as a “crown jewel” and hasnt shared similar tech with even its closest allies. The deal also includes the co-production of 99 jet engines, which will be less costly due to the technology transfer.According to media reports the deal will involve 80% transfer of technology and is estimated to be worth around $1 billion. The transfer will cover 11 critical areas many of which were entirely off-limits more than a decade ago when GE and Indias Aeronautical Development Agency (ADA) began talks on the possible production of the engines in the country.When the talks first began, the US agreed to only 58% technology transfer, keeping a string of key engine technologies out of Indias reach, as previously.This deal will also help to combat the situation with China at the Line of Actual Control, and its ambition of building a domestic defense industrial base since India is still lagging in jet engine technology.
