GE to likely clinch the lucrative engine deal with India
On June 7, 2023, General Electric (GE) announced that they have been granted permission by the Biden government to transfer their jet engine manufacturing technology to India. This move will help the American GE Company to team up with Hindustan Aeronautics Limited (HAL), an Indian government-owned company, to co-produce jet engines in India.
The agreement is expected to be signed during Indian Prime Minister Narendra Modi’s upcoming visit to the US. The deal is set to generate a large number of jobs for the Americans and also halp around 500-600 Indian micro, small, and medium enterprises (MSMEs). Currently, the specifics of the technology transfer, timelines, and payment arrangements are being discussed, and the final agreement is expected to be signed during Modi’s visit to the US.
HAL’s existing engine division in Koraput, Odisha, is being considered as the location for co-production. Interestingly, this is not the first time GE and HAL have tried to strike a deal. A similar deal fell through in 2012 because the USA government was reluctant to transfer the requisite technology. They also tried to attach strings to the deal. They have now reached an agreement on higher levels of technology transfer.
Overall, this agreement is a significant step towards strengthening the relationship between the US and India in the field of technology and manufacturing.
