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US, India Defence Ties To Witness ‘Unprecedented Co-production, Tech Transfer’ Plans

PM Narendra Modi and US President Joe Biden Thursday finally gave green signal to the two multibillion-dollar defence deals by General Electric and General Atomic calling it to be ‘next generation’ defence partnership between the US and India.

New Delhi: Prime Minister Narendra Modi and US President Joe Biden sought to welcome the “next generation” of US-India defence partnership as they vowed to work closely on “unprecedented co-production and technology transfer” plans in the defence sector, according to a joint statement.

The statement, which was issued after a bilateral meeting between Modi and Biden in Washington DC Thursday, also said that the agreement between General Electric (GE) and Hindustan Aeronautics Ltd. (HAL) for the manufacture of F-414 fighter jet engines in India, will “enable greater transfer of U.S. jet engine technology than ever before.”

“President Biden and Prime Minister Modi hailed the landmark signing of an MoU between General Electric and Hindustan Aeronautics Limited for the manufacture of GE F-414 jet engines in India, for the Hindustan Aeronautics Limited Light Combat Aircraft Mk 2,” said the statement.

It also said, “This trailblazing initiative to manufacture F-414 engines in India will enable greater transfer of U.S. jet engine technology than ever before. The leaders committed their governments to working collaboratively and expeditiously to support the advancement of this unprecedented co-production and technology transfer proposal.”

PM Modi and President Biden finally gave the green signal to two key defence deals under which GE, in collaboration with HAL, will manufacture the F-414 engines in India. In the second deal, India will procure MQ-9B armed drones under a $3 billion deal. The drones will be assembled in India.

“The decision taken by General Electric to manufacture engines in India through transfer of technology is a landmark agreement. This also opens up new job opportunities in both countries. This will give our defense cooperation a new character in the times to come,” said Modi at a press conference in Washington DC, along with President Biden.

The MoU between GE and HAL was signed Thursday and a manufacturing license agreement has been submitted for Congressional Notification, according to the White House. This is the first time the US will be going for transfer of sensitive defence technology with a country that is a non-treaty ally.

“President Biden and Prime Minister Modi welcomed India’s plans to procure General Atomics MQ-9B HALE UAVs. The MQ-9Bs, which will be assembled in India, will enhance the ISR (intelligence, surveillance, and reconnaissance) capabilities of India’s armed forces across domains,” the joint statement said.

San Diego-based General Atomics will also set up a global maintenance and repair facility in India “to support India's long-term goals to boost indigenous defense capabilities,” the statement said.

ALSO READ | As India’s $3bn Weaponised Drones Purchase Speeds Up, US Defence Conglomerate Plans ‘Long-Term’ Ties

Master Ship Agreement Signed, Indus-X Launched

Apart from the billion dollar deals, US and India also signed agreements that will bring the militaries of the two nations closer.

The United States Navy has concluded a Master Ship Repair Agreement (MSRA) with Larsen and Toubro Shipyard in Kottapuli (Chennai) and is finalizing agreements with Mazagon Dock Ltd. (Mumbai) and Goa Shipyard (Goa). 

These agreements will allow mid-voyage U.S. Navy ships to undergo service and repair at Indian shipyards, facilitating cost-effective and time-saving sustain for U.S. military operations across multiple theatres, said a White House factsheet.

On Wednesday, both sides also launched the India-U.S. defense accelerator ecosystem, or INDUS-X, that seeks to bring defence tech start-ups under one umbrella.

For the first time, India will be posting liaison officers in U.S. commands that will not only deepen the defence and security ties between the two but will also help in “critical information sharing,” said the White House.

India To Invest $2 Billion In US Manufacturing Sector, Semiconductor

During the visit PM Modi has also assured Biden that Indian companies will invest to the tune of $2 billion in the US’ manufacturing sector from steel to solar and optic fiber.

“And with this visit, Indian firms are announcing more than $2 billion — more than $2 billion in new investments in manufacturing — in solar in Colorado, steel in Ohio, and optic fiber in South Carolina, and much more. Further proof that America’s manufacturing is back,” said Biden at the press conference.

He also added that both sides are also “doubling down” cooperation in semiconductor supply chains.

“We are doubling down on our cooperation to secure our semiconductor (sic) — our semiconductor supply chains, advancing Open RAN telecommunications networks, and growing our Major Defense Partnership with more joint exercises, more cooperation between our defense industries, and more consultation and coordination across all domains,” said Biden.

Micron Technology, Inc., with support from the India Semiconductor Mission, will invest more than $800 million toward a new $2.75 billion semiconductor assembly and test facility in India, announced the White House Thursday.

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