India and U.S. Finalizing Jet Engine Deal with Increased Technology Transfer

India and the United States are in advanced stages of discussions to finalize a deal for the joint production of GE-F414 fighter jet engines. The engines, intended for India's Light Combat Aircraft (LCA) Mk2 program, are a collaboration between Hindustan Aeronautics Limited (HAL) and General Electric (GE) Aerospace.

According to recent updates, HAL has constituted a Contract Negotiation Committee to formalize the agreement by March 2025. The deal includes a significant transfer of technology, with provisions to manufacture approximately 80% of the engine components under license in India. This represents an increase of 22% compared to an earlier agreement in 2012.

The projected value of the agreement is around $1 billion. However, discussions have noted potential cost escalations, which may require further approvals from India's defense ministry. Detailed technical negotiations between HAL and GE have identified adjustments that could impact the overall pricing.

The GE-F414 engines are expected to power the LCA Mk2 jets, forming a key component of India's defense modernization efforts. HAL and GE plan to establish production facilities in India once export clearances are obtained from the U.S. government.

Both companies have emphasized the strategic importance of the collaboration, citing advancements in technology transfer and domestic production capabilities as central to the agreement.

Further developments are anticipated as the negotiations progress and approvals are secured.