Landmark GE-HAL deal ushers in New Era in India-US tech ties

  • Industry News
  • Sep 04,23
For India, this pact holds the potential to bridge the divide between domestic manufacturers and global standards, enhancing both defence deterrence and offensive capabilities.
Landmark GE-HAL deal ushers in New Era in India-US tech ties

A historic agreement between General Electric (GE) and Hindustan Aeronautics Limited (HAL) marks the dawn of a new era in India-US relations, with technology transfer, jet engine manufacturing in India, and licensing arrangements at its core. Notably, this deal signifies a groundbreaking departure for the United States, as it involves sharing strategic jet engine technology, a closely guarded asset that has not been shared with even its closest allies. The US government's commitment to forging this agreement demonstrates a strong vote of confidence in the partnership.

For India, this pact holds the potential to bridge the divide between domestic manufacturers and global standards, enhancing both defence deterrence and offensive capabilities. It is particularly significant given the ongoing tense standoff with Beijing at the Line of Actual Control. The technology transfer aspect could empower India to revitalise its defence manufacturing capabilities and bolster its aerial strength, effectively narrowing the gap with China.

India has long grappled with concerns regarding technology transfer in licensed production and the sale of defense equipment. If the GE deal successfully establishes a model for advanced technology sharing, it could serve as a blueprint for future collaborations, facilitating Indian defense manufacturers, including startups, in designing and producing equipment in partnership with US companies. This, in turn, could accelerate India's somewhat sluggish indigenisation process.

From the perspective of Washington, this agreement aligns with a broader strategy of supporting regional anchors to deter Chinese aggression. In this context, the GE deal represents a significant leap forward in achieving this objective.

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