Editorial: Game changer deal

The GE-HAL agreement can help India bridge the gap between domestic manufacturers and international standards

Ahead of Joe Biden’s visit to New Delhi for the G20 summit, the US Congress’ approval of a deal between GE Aerospace and Hindustan Aeronautics Limited (HAL) for manufacturing fighter jet engines for the Indian Air Force (IAF) could be a game changer for the bilateral defence cooperation. The agreement, signed by the two countries during Prime Minister Narendra Modi’s visit to the US in June, paves the way for unprecedented technology transfer, manufacturing of jet engines in India and licensing arrangements. This is unlike any other defence deals in the past. Its significance lies in the fact that America considers jet engine technology as a strategic asset that is not shared even with its close allies. The US government has now made an exception in the case of India, reflecting the growing convergence of strategic interests between the two countries. Under the historic agreement, GE Aerospace will transfer 80% of its technology to India for the production of F414 fighter jet engines. This technology transfer is aimed at enhancing the operational performance of the Light Combat Aircraft (LCA) MKII. The pact entails joint production of GE Aerospace’s F414 engines in India, under the Air Force’s Light Combat Aircraft Mk2 programme. Over the last few decades, Indo-US ties have seen the upswing with technological bonds emerging as the central axis of the deepening relationship. In the rapidly changing international geopolitics, marked by China’s growing hegemony, India and the US have every reason to come closer.

With the convergence of interests and shared cultural values, the two largest democracies are keen to take their strategic partnership to the next level. The latest deal is a testimony to this trend. For India, the GE-HAL agreement can help bridge the gap between domestic manufacturers and international standards, and bolster defence deterrence and offensive capabilities. The technology transfer, in fact, could help India spur its defence manufacturing and aerial power, bridging the gap with China. The new technology partnership forms the basis for future indigenous engines that will power the military jets. The deal includes the co-production of 99 jet engines, which will be less costly due to the technology transfer. The F414 engines are renowned for their reliability and performance. GE Aerospace, which has been operating in India for over four decades now, will also get a boost to its volume of facilities here, including providing engines, avionics, services, engineering, manufacturing, and local sourcing. Given that India and the US are partners in QUAD (Quadrilateral Security Dialogue), along with Australia and Japan, the US Congress clearing the jet engine deal is seen as a formality. For nearly two decades, the two countries have been talking about transforming defence cooperation. The sea change in the Indo-Pacific and the shared interests in stabilising the Asian balance of power are fuelling a demand for a solid India-US defence partnership.

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