Indian and US companies reached a technology agreement to jointly manufacture jet engines, a first for both, as Prime Minister Narendra Modi seeks foreign partners to modernise the air force and produce weapons in the South Asian nation.

Ohio-based defense manufacturer GE Aerospace and India’s State-owned Hindustan Aeronautics Limited have “reached an agreement on technical matters” for co-production of F414 engines, the two companies said in a joint statement issued Tuesday. The deal has been in the works for about three years and brings the partners closer to production.

The pact includes the transfer of manufacturing expertise to India and will be followed by a final contract. India has also been looking at jet engine manufacturing deals with firms in France, Japan and the UK.

“This agreement marks a significant step forward in strengthening economic growth and advancing cooperation for both India and the US and expands the 40-year partnership between GE Aerospace and HAL,” the two sides said in a statement.

The engines will be used to power India’s indigenously made next-generation fighters. The country plans to have 120 to 130 such fighters, replacing its Russian-made jets. GE’s F414 engines have been used by the US Navy for more than 30 years.

The deal should help Modi as he seeks to boost India’s armed forces and reverse its declining fighter squadron strength, which is critical to deter Pakistan and China — its neighbours to the west and north.

India’s air force was tested last year during clashes with Pakistan, which hailed the use of its Chinese J-10Cs to shoot down what it claimed to be several Indian fighter jets.

Talks on joint production have been underway since 2023 when then-President Joe Biden and Modi agreed to co-produce high-end defense equipment, including jet engines, and cooperate on advanced technologies such as semiconductors and quantum computing.

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Published on April 16, 2026