India, US near deal to build jet engines in boost to PM Modi

The White House is likely to clear the proposal from General Electric Co., the Massachusetts-based aerospace manufacturing giant, to produce the engines with state-owned Hindustan Aeronautics Ltd. for the Tejas light-combat aircraft, according to a report

FP Staff June 15, 2023 10:55:17 IST
India, US near deal to build jet engines in boost to PM Modi

Narendra Modi will visit the US next week. It will be his first state visit to the country where he will have bilateral talks with President Joe Biden. File photo/PTI

When Prime Minister Narendra Modi visits Washington next week, the US and India are likely to agree to jointly manufacture fighter jet engines in India, according to a report.

According to a Bloomberg report, citing people with knowledge of the matter, the deal is close to the finish line.

According to the sources, the White House is likely to approve General Electric Co.’s plan to develop the engines for the Tejas light-combat aircraft alongside state-owned Hindustan Aeronautics Ltd.

Prime Minister Modi arrives in Washington DC on a three-day state visit on 21 June. The welcome ceremony and the state dinner along with an address to the Joint Session of the US Congress are scheduled for 22 June.

Addressing a press conference in New Delhi on Tuesday, US National Security Adviser Jake Sullivan said a number of the deliverables from PM Modi’s visit “are not just bullet points on a page.” “They are fundamentally designed to remove those obstacles in defence trading, in high tech trade, in investment in each of our countries,” he added.

Sullivan is in India this week for meetings with top Indian officials ahead of PM Modi’s visit.

The Biden administration is attempting to strengthen ties with nations that are essential to fending off what it perceives as China’s growing threat, hence PM Modi’s visit is significant.

In order to yank India out of Russia’s sphere of influence, the US has appeared eager to enhance its ties with India while also overlooking its ‘democratic regress’, reported Bloomberg.

US-India ties growing stronger

Ties between US and India have grown stronger as concerns over China have increased despite significant differences “in the fields of values and vision,” Bloomberg quoted Sushant Singh, a senior fellow at New the Centre of Policy Research, a New Delhi-based think tank, as saying. “Those are currently being overridden by interests,” Singh added.

India is relying on the general improvement in relations and bipartisan backing to get the US Congress to approve the jet engine accord, which would necessitate technology transfer from America.

Bengaluru-based Hindustan Aeronautics Ltd. and India’s Ministry of External Affairs didn’t immediately reply to requests for comment. The US National Security Council had no comment, and GE declined to comment, added the report.

The jet engine agreement would fit in with PM Modi’s wider push to boost defense manufacturing locally but with technology partnerships with nations that are keen to draw New Delhi into their orbit as Russia’s war in Ukraine drags on into a second year. Earlier this month Germany’s Thyssenkrupp AG’s marine arm and India’s Mazagon Dock Shipbuilders Ltd. signed an initial agreement to jointly build submarines for the Indian navy.

Russia remains India’s largest supplier of military hardware, though purchases have slowed by 19% in the last five years due to sanctions and increased competition from other manufacturing countries. Russian deliveries of military supplies to India have ground to a halt as the countries struggle to find a payment mechanism that doesn’t violate Western sanctions.

How does India benefit?

The domestic production of the GE engines will strengthen India’s fighter jet program and its air force, whose fleet of rapidly aging Russian fighters need to be replaced. It will also boost Modi’s image as he looks at a third term in office in national elections next year.

India and the US will also likely inch closer to agreements on other defence issues, including India’s purchase of over a dozen armed drones that could exponentially boost its sea and land defence capabilities.

In addition, the two countries will be discussing jointly building the eight-wheeled armored personnel carrier – Stryker – in India.

With inputs from agencies

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