21st November 2024

US Congress Approves Landmark Aerospace Deal to Boost India’s Fighter Jet Production

by | Sep 4, 2023 | Indian-American

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Ahead of US President Joe Biden’s visit to India for the G20 Summit, the US Congress has given its seal of approval to the historic agreement between GE Aerospace and Hindustan Aeronautics Limited (HAL). This deal paves the way for the joint production of F414 engines in India, a development that carries immense significance for the Indian Air Force and its pursuit of self-reliance in defence technology.

Valued at an impressive US$1 billion, this agreement represents a substantial commitment from GE Aerospace. The company is set to transfer 80 percent of its advanced technology to India, ushering in a new era of indigenous defence production. This significant technology transfer is poised to catapult India’s indigenous content for the next-generation fighter jet to approximately 75 percent, a notable leap from the previous program’s 55-60 percent.

The green light from the US Congress has set the stage for further discussions during President Biden’s visit to India for the G20 summit in September 2023. This high-profile diplomatic event holds the potential to deepen the cooperation between the two nations, particularly in the defence sector.

As reported previously by Financial Express Online, this partnership between GE Aerospace and HAL is hailed as a game changer by HAL Chief CB Ananthakrishnan. Under the terms of the deal, GE Aerospace will facilitate the production of F414 fighter jet engines in India, aligning with the Indian Air Force’s Light Combat Aircraft (LCA) Mk2 program. With its estimated value of US$1 billion, this pact ensures collaborative production, bringing cutting-edge technology and manufacturing expertise to Indian soil.

The significance of this arrangement extends to the heart of India’s defence strategy. It is projected to result in a substantial increase in indigenous content for the new fighter jet, effectively elevating it to a level of 75 percent. This marks a significant improvement over the 55-60 percent indigenous content in the LCA Mk-1A and the 50 percent in LCA Mk1.

The HAL CMD CB Ananthakrishnan has highlighted previously following the announcement of the deal during Prime Minister Narendra Modi’s visit that this partnership is not merely about the present but also forms the cornerstone for future indigenous engines that will power military jets.

The final agreement is prepared to cover the co-production of 99 F414 jet engines. This collaboration will lead to cost savings, as India leverages the technology transfer from GE Aerospace. It is projected that the first batch of these engines will roll off the production line in India within the next three years, marking a significant milestone in India’s journey toward self-reliance in defence technology.

Background
In a significant step forward, GE Aerospace signed a Memorandum of Understanding (MoU) with Hindustan Aeronautics in June 2023. This MoU outlines the co-production of GE’s F414 engines in India, which will power the Light Combat Aircraft (LCA) Tejas Mk2. This strategic move aligns with GE Aerospace’s four-decade-long presence in India, where it has played a pivotal role in the aviation industry. The company’s engagements span engines, avionics, services, engineering, manufacturing, and local sourcing.

GE Aerospace’s commitment to India’s defence capabilities began with its involvement in supporting the development of LCA Mk1, equipped with F404 engines. Subsequently, GE Aerospace’s F404 and F414 engines became integral to the development and production programs of LCA Mk1A and LCA Mk2.

To date, a significant number of F404 engines have been successfully delivered, with an additional 99 engines on order for LCA Mk1A. Furthermore, eight F414 engines have been delivered as part of an ongoing development program for LCA Mk2. These achievements underscore the reliability and quality of GE Aerospace’s products in bolstering India’s defence capabilities.

With this groundbreaking agreement, GE Aerospace envisions not only manufacturing its products in India but also partnering in prototype development, testing, and certification of the Advanced Medium Combat Aircraft (AMCA) program with the F414-INS6 engine. Additionally, the company plans to collaborate closely with the Indian government on the AMCA Mk2 engine program, further solidifying its commitment to India’s aerospace aspirations.

GE’s current footprint in India includes a state-of-the-art Research and Development (R&D) center in Bengaluru and a multi-modal factory in Pune. These facilities are poised to play a pivotal role in realizing the goals of this transformative aerospace partnership.

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