Explained | What is India’s jet engine deal with the U.S. and why is it significant

The story so far: A mega defence deal for the manufacture of fighter jet engines in India is expected to dominate the agenda of Prime Minister Narendra Modi’s first state visit to the United States this week. According to sources, India and the U.S. have “almost” finalised details and the White House is set to sign off on the deal that will allow American manufacturing company General Electric Aerospace to share critical technology with Hindustan Aeronautics Limited for the joint production of GE-F414 jet engines that will power indigenous Light Combat Aircraft Tejas Mk-II. “The jet engine deal will take India’s capability in the aircraft industry to a new level, and I think from a U.S. perspective, it will mean jobs. “The deal would bolster India’s capacity to field indigenously produced fighters with some of the most powerful and reliable engines in the class, saving decades of research and development costs.” The report adds that any advanced technology transfer “carries inherent risks, even with reliable strategic partners.” “However, assuming that those risks can be sufficiently mitiga bted and that India is also invested in taking the relationship to new levels, the U.S. government should approve the transfer of the F414 engine technology to India,” it says. Addressing India’s dependence on Russian imports, the report added, “Expanding the type and sophistication of the arms the U.S. is willing to sell to India may elevate the U.S. as an alternative to India’s traditional dependence on Russian hardware, particularly amid rising concerns about Russia’s strategic embrace of China, and growing questions about the quality, reliability, and capacity of a Russian defence industrial base increasingly strained by the Ukraine conflict.”