![GE will co-produce military jet engines in India: sources](https://image.cnbcfm.com/api/v1/image/107254384-16863347561686334753-29816141669-1080pnbcnews.jpg?v=1686335278&w=750&h=422&vtcrop=y)
General Electric is in final talks to cement its partnership with India Hindustan Aeronautics Ltd. to co-produce jet engines within the country, CNBC learned.
The deal, which is resulting from be signed before or during Indian Prime Minister Narendra Modi’s visit to Washington later this month, will give the Indian aerospace company access to GE’s highly coveted F414 engine, in response to two people familiar with the deal. who requested anonymity to debate details that weren’t yet public.
People said the engines can be utilized in fighter jets for India.
Earlier this week, US Defense Secretary Lloyd Austin visited India and discussed a jet engine deal with Indian officials, CNBC sources said.
The character of the deal – whether it can be a partnership, three way partnership or co-assembly – stays to be seen. Sources say that two Indian startups are also a part of the project.
GE declined to comment.
A partnership of this type would require technology transfer, and subsequently congressional approval, to maneuver forward. Experts say that after the U.S. Department of State formally notifies the congressional committees on Capitol Hill concerning the GE partnership, a 30-day period to approve the deal will begin.
State Department and Indian government officials didn’t immediately reply to requests for comment. The Pentagon declined to comment.
“We all know that sharing advanced technology is what India wants from the US to indicate that they’re on this relationship for the long haul,” said Richard Rossow, head of US-India policy studies on the Center for Strategic and International Studies.
For years, India has relied on Russia for its defense needs, nevertheless Indian defense officials have engaged in a series of meetings with Washington in recent times to acquire American equipment as well.
“The Indians want co-productions. They wish to develop and manufacture this equipment in India – not only be an overseas buyer,” said Daniel Silverberg, managing director of Capstone and former national security adviser.
Potential GE deal comes as India’s economy grows exponentially attracting increasing interest from such corporate giants Apple, Google AND Amazon. In May, Apple CEO Tim Cook traveled to India and met with Modi because the iPhone maker opened its first two major retail stores within the country.
The emerging market is also increasingly seen as a option to offset China’s dominance in broader Asia.
“One in all the policy goals of the US administration is to strengthen the Indian military’s ability to play a key role in the trouble against China,” Silverberg said.
GE Aerospace has been increasing its presence in India for 4 a long time, using joint ventures to realize market share.
“We’re actually seeing a lot of activity in India,” GE CEO Larry Culp told CNBC in late April, weeks after Air India placed a massive order for greater than 800 GE LEAP engines.