GE Aerospace and India’s Hindustan Aeronautics Ltd. have agreed upon technical specifications to co-produce fighter-jet engines, moving one step closer to a deal that would shift high-end US military technology to India.

GE and HAL “reached an agreement on technical matters” for the production of F414 engines, according to a joint statement issued on Tuesday. The pact, under negotiation for three years, includes the transfer of manufacturing expertise to India and will be followed by a final contract.

The agreement marks a pivotal moment for Prime Minister Narendra Modi’s “Make in India” initiative, which seeks to modernise the country’s aging air force while reducing its decades-long reliance on Russian hardware. India intends to use the F414 turbines to power 120 to 130 next-generation, indigenously developed fighter jets.

For Washington, the technology transfer signals a deepening of the strategic partnership aimed at countering China’s growing influence in the Indo-Pacific. While the US has historically guarded its jet engine “crown jewels”, the Biden administration fast-tracked the GE-HAL deal in 2023 as part of a broader push for cooperation on semiconductors, quantum computing and defense hardware.

“This agreement marks a significant step forward in strengthening economic growth and advancing cooperation for both India and the US,” GE Aerospace said in the statement. The move expands a 40-year relationship between General Electric and Hindustan Aeronautics.

Last year, skirmishes with Pakistan saw Islamabad tout the performance of its Chinese J-10C fighters, adding pressure on New Delhi to accelerate its fleet modernisation.

Beyond the US partnership, India has kept its options open, exploring similar engine manufacturing deals with firms in France, Japan, and the UK to ensure its defence supply chain remains diversified.

The government aims to replace its fleet of Soviet-era MiG-21s and other Russian platforms with the new F414-powered fighter jets over the next decade.

The finalised technical agreement clears the path for the commercial contract, which will outline the specific percentage of technology transfer and the timeline for the first India-made engines to roll off the assembly line.

In February, the two countries had announced that they had finalised the framework for the first phase of their bilateral trade pact. (AI image)

India-US trade deal update: Months after India and the US announced an interim trade agreement that reduces tariffs on India to 18%, an official Indian delegation is set to travel to Washington next week for discussions with US authorities, a government source said on Wednesday.According to a PTI source, the visit is scheduled for next week. The agreement had originally been expected to be signed in March, but developments in the Donald Trump tariff regime following a ruling by the Supreme Court of the United States have changed the circumstances.In this light, the talks between trade representatives of India and the United States are seen as particularly significant. Officials had earlier indicated that the deal would be concluded only after clarity emerges on the revised tariff structure in the United States.In February, the two countries had announced that they had finalised the framework for the first phase of their bilateral trade pact. As part of this understanding, the US had agreed to bring down tariffs on Indian goods to 18 per cent.However, the tariff environment in the US shifted after the court struck down sweeping reciprocal tariffs introduced by President Donald Trump. Subsequently, the US administration imposed a uniform 10 per cent tariff on imports from all countries for a period of 150 days starting February 24.Amid these changes, a planned meeting between the chief negotiators from both sides was deferred last month. The two countries had been scheduled to meet in February to finalise the legal text of the agreement.At the time the framework was agreed, India enjoyed a relative advantage over competing nations. That edge has since narrowed, as all US trading partners are now subject to the same 10 per cent tariff.The upcoming talks will also be crucial in the context of two ongoing investigations initiated by the Office of the United States Trade Representative under Section 301.On March 12, the USTR launched a probe covering around 60 economies, including India and China. The investigation aims to assess whether policies or practices related to the enforcement of bans on goods produced using forced labour are unreasonable or discriminatory, or whether they restrict US trade.A day earlier, on March 11, the USTR had initiated another Section 301 investigation focusing on the policies and industrial practices of 16 economies, including India and China.