The Biden administration is poised to sign off on a deal that would allow General Electric Co. to produce jet engines powering Indian military aircraft in India, according to three people briefed on the decision. Washington is working to deepen ties with India and sees deeper military-to-military and technology ties as a key counterweight to China's dominance in the region.
India, the world's largest arms importer, relies on Russia for nearly half its military supplies, and New Delhi has frustrated Washington by participating in military exercises with Russia and increasing purchases of the country's crude oil. India's Hindustan Aeronautics Ltd (HAL) has announced plans to use the GE-manufactured 414 engine on a second generation of light-combat aircraft.
The deal is not finalized and requires notification to the U.S. Congress. Washington maintains strict controls over what domestic military technology can be shared or sold to other countries. India is pushing for more technology to be shared, as it lacks the ability to produce engines to power fighter jets.
HAL is using a lighter GE engine for the 83 light combat aircraft it is manufacturing for the Indian air force, but India intends to produce more than 350 fighter jets for its air force and Navy over the next two decades.