GE Cleared For Takeoff: US Reportedly Greenlights Jet Engine Tech Transfer To India

This story was first published on the Benzinga India Portal.

The U.S. government has reportedly given General Electric GE the green light to transfer jet engine manufacturing technology to India, and both sides have reached a preliminary agreement on the deal.

What Happened? Indian Prime Minister Narendra Modi and President Joe Biden are all set to make an announcement on the defense deal during their upcoming meeting in Washington D.C. from June 21-24, CNBC-TV18 reported, citing sources.

Under the agreement, US-based GE will join forces with government-owned Hindustan Aeronautics Limited (HAL) to co-produce jet engines for India’s fighter jet program. The agreement is expected to kickstart this collaboration.

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Notably, GE and HAL had tried to strike a similar deal back in 2012, but it fell through because the Indian government wanted more in terms of technology transfer. However, sources told the business news channel that they have reached an agreement on higher levels of technology transfer, making India the only U.S. ally with such a deal.

The specifics of the technology transfer, timelines, and payment arrangements are currently being discussed, and the final agreement will likely be signed during Modi’s visit to the U.S., they said.

While they added that the exact location for co-production has not yet been announced, HAL’s existing engine division in Koraput, Odisha, is being considered. This agreement could also bring benefits to around 500-600 Indian micro, small and medium enterprises (MSMEs).

Although the deal will require approval from Congress, it has already reportedly received high-level political agreement. Indian Defence Minister Rajnath Singh and Secretary for Defence Lloyd Austin are said to have reviewed the details of the agreement during Austin’s recent visit to India.

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