US-INDIA FIGHTER JET DEAL

1. Context 

Coinciding with Prime Minister's first state visit, India and the U.S. have announced a series of agreements in defence cooperation, space technology, AI and other areas.

A significant development is the signing of a Memorandum of Understanding (MoU) between General Electric (GE) and Hindustan Aeronautics Limited (HAL) for the manufacture of GE F 414 jet engines in India.

2. Status of the GE-HAL Deal

• The deal is "almost done" with some pending commercial terms and requires approval from the U.S. Congress.
• An 80 per cent transfer of production technology is expected, marking a significant milestone in India's pursuit of high technology.
• Once the contract is signed, the first engine will be rolled out in three years. 
• The F414-INS6 engine will be primarily manufactured in India, showcasing the level of trust between the two countries.

Image source: The Hindu

3. Significance of the Deal

• The deal represents a major high-technology cooperation between the oldest and largest democracies, with technology transfer surpassing previous agreements.
• It provides Indian industries, both public and private, an opportunity to enhance their capacities and skills through local sourcing and manufacturing.
• While critical technologies remain off-limits, GE has agreed to transfer technologies that will contribute to India's technological advancement.

4. Status of Indigenous Tech Development

• Developing jet engine technology locally has been challenging for India, with past attempts under the Kaveri Project proving unsuccessful.
• The Kaveri project, initiated in 1989, incurred significant expenditure but was ultimately shut down after three decades, producing several prototype and core engines.

5. Applications of GE Engines

• The GE F414 engines will power the indigenous Light Combat Aircraft (LCA) Mk2, an enhanced variant of the LCA currently in service.
• These engines will also be used in the initial version of the fifth-generation Advanced Medium Combat Aircraft (AMCA) under development.
• The F414 engine, a more capable version of the F404 engine, also powers aircraft such as the F/A-18 Super Hornet and Swedish Gripen.

6. Timeline for Production and Delivery

• GE has delivered 75 F404 engines and has orders for another 99 for the LCA Mk 1A.
• Eight F414 engines have been delivered as part of the ongoing development program for LCA Mk2.
• The LCA-Mk2 is designed around the F414 engine, making it a larger, heavier and more capable aircraft.
• The Indian Air Force (IAF) has ordered 40 LCA Mk1 and 83 LCA-Mk1A, with deliveries scheduled until 2028-29.
• The LCA-Mk 2 aimed at bolstering the IAF's fighter squadron, is expected to be between 120 and 130 fighters, with a potential need for over 200 F414 engines in the next two decades.

7. Conclusion

• The GE-HAL agreement for the manufacture of F414 jet engines in India marks a significant step in defence cooperation between India and the U.S.
• If the deal is approved, it will facilitate substantial technology transfer and provide Indian industries with opportunities for growth and skill enhancement.
• The engines will power indigenous aircraft, including the LCA Mk2 and future AMCA versions, aiding the modernization of India's fighter squadron.