Indian and American firms have established a technology pact to collaboratively produce jet engines, marking a first for both nations, as Prime Minister Narendra Modi aims to attract foreign allies to enhance the air force and manufacture arms within South Asia.

Ohio's GE Aerospace and India's Hindustan Aeronautics Limited have “finalized a deal on technical aspects” for the co-manufacturing of F414 engines, the companies stated in a joint announcement released on Tuesday. The agreement has been developing for nearly three years and moves the partners nearer to production.

The agreement encompasses the transmission of production knowledge to India and will be succeeded by a concluding contract. India has been exploring jet engine production agreements with companies in France, Japan, and the UK.

The engines will be utilized to drive India's domestically produced next-generation fighter aircraft. The nation aims to acquire 120 to 130 of these fighter jets, substituting its Russian-manufactured aircraft. For over 30 years, the US Navy has utilized GE's F414 engines.

The agreement is intended to assist Modi in strengthening India’s military and reversing the decrease in fighter squadrons, which is vital for deterring Pakistan and China — its western and northern neighbors.

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India’s air force faced challenges last year amid confrontations with Pakistan, which celebrated the deployment of its Chinese J-10Cs to down what it asserted were multiple Indian fighter jets.

Discussions regarding joint production began in 2023 when former President Joe Biden and Modi reached an agreement to co-produce sophisticated defense equipment, including jet engines, and collaborate on cutting-edge technologies like semiconductors and quantum computing.

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GE Aerospace is dedicated to advancing India's aerospace ecosystem, which includes design, development, manufacturing, and support for both commercial and military aviation. For instance, 150 engineers have graduated from the company's local two-year Edison Engineering Development Program aimed at cultivating engineering leaders.

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Numerous training initiatives over a decade have equipped more than 5000 individuals with essential manufacturing skills at the firm’s Pune facility. In September 2025, the GE Aerospace Foundation, together with United Way, initiated Next Engineers in Bengaluru, a four-year program focused on college and career readiness that aims to assist 4000 aspiring young engineers.