India-USA aerospace partnership picking pace

Defence ties between India and the United States have developed into a strong alliance propelled by technological cooperation and common security concerns. Recent developments, such as the cooperative manufacturing of GE F414 jet engines, demonstrate growing connections, improved interoperability and a shared dedication to an open and free Indo-Pacific.

The year 2025 marks a major turning point in the history of the Indian Air Force as it is finally in this year that Indian Air Force has retired its 60-year-old warhorse MiG21 and will induct an upgraded version of Tejas, which is pitched to replace MiG21 as the backbone of the IAF.

The year does not see the IAF just change its key aircraft, but it is also the year that the world’s fifth largest air force continues to broaden its cooperation base, which has historically been with Russia, which was also the exporter of MiG21s. With the new aircraft systems joining the IAF, India has been establishing firm partnerships with other major weapons producers such as France and the United States.

The induction of the first Tejas Mk-1A combat aircraft from the newly established line at the Nashik factory of Hindustan Aeronautics Limited (HAL), the only aircraft manufacturer in India, will be watched carefully not just by the top brass of the IAF, HAL and the Ministry of Defence, but also thousands of km away in Washington DC in the United States as the delivery of these aircraft, delayed by several years, has become possible only because US aircraft manufacturer GE Aerospace delivered the first of the 99 GEF414 engines that would power Tejas MK1A.

While the supply of 99 engines is only the beginning of the relationship between HAL and GE, the two companies have also agreed for a comprehensive Transfer of Technology (ToT) whereby HAL will manufacture these engines in India under licence from GE and use at least 80 pc of locally-sourced components for the engine.

It is a significant cornerstone in India-US defence ties as this is the first ToT agreement between the two sides and India expects that it is only the beginning. It may have taken time for the two sides to reach the agreement, but it also displays how significantly the landscape of the bilateral relationship has changed, notably in the area of defence.

No one in South Block or the Pentagon would have predicted, two decades ago, that Indian and American fighter jets would be flying side by side in the skies over the Bay of Bengal, or that Indian and United States special forces would be training together in the deserts of Rajasthan.

Yet, today, defence relations between India and the United States have become one of the most dynamic and consequential partnerships in global security, fundamentally reshaping Asia’s strategic landscape. The evolution in this relationship has been remarkable, particularly since the historic US-India Civil Nuclear Agreement in 2008.

“I think the Indo-US defence relationship has only shown an upward trajectory for the past 15 years, ever since the civil nuclear deal. It has just grown since then and now, defence is the fulcrum of the US-India relationship because that forms a bulk of the cooperation and successes. So, I think it is a steady progress,” Nitin A Gokhale, Defence Analyst and Founder of Bharat Shakti, an online portal on defence in India, tells Biz@India.

According to a report by the Ministry of External Affairs, this sentiment is borne out by the numbers as bilateral trade in defence goods has soared from virtually nothing in 2008 to over USD 20 billion by 2023.

This transformation is not merely transactional. The relationship is now defined by a strategic alignment, driven by shared concerns over regional security, the rise of China and the imperative of a free and open Indo-Pacific. Foundational agreements such as LEMOA, signed in 2016, COMCASA finalised in 2018 and BECA that was initialled in 2020 have enabled unprecedented levels of military interoperability, intelligence sharing and logistical support.

The scale and complexity of joint military exercises have also increased dramatically. The Malabar naval exercise, once a bilateral affair, now regularly includes Japan and Australia, symbolising the emergence of Quad countries, a grouping of the four countries, as a central pillar of Indo-Pacific security.

In 2023, Malabar saw aircraft carriers, submarines and advanced fighter jets from all four nations operating together, sending a clear signal of unity and capability, according to a report by the US Indo-Pacific Command.

Special Forces from both countries also conduct annual Vajra Prahar exercises and the Yudh Abhyas army drills have grown in sophistication, focussing on counter-terrorism, high altitude warfare and humanitarian assistance.

“There is increasing cooperation in terms of very nuanced exercises that they do. They are getting more and more complex. The Malabar exercise, the Special Forces exercise, the tabletop discussions that they have, more exchanges of officers from one another. India has also posted three layers of officers to three different US commands, so that they better serve the defence relationship. More than anything else, I think this sets the tone for India’s ambition to be a regional power with technology-driven force. The US has many things to offer,” Gokhale adds.

The partnership is also reflected in the growing presence of US defence products in Indian defence ecosystem. The US is now one of India’s primary sources of advanced military hardware, supplying P-8I maritime patrol aircraft, C-17 and C-130J transport aircraft, Apache and Chinook helicopters and M777 howitzers.

Over the years, several US companies, such as GE Aerospace or Boeing, have become integral to India’s defence and manufacturing industry ecosystem.

“GE Aerospace is a strategic partner to India’s domestic aerospace industry. With its roots in GE’s over 100 year legacy in the country, the aerospace operations began in 1982. Over the four decades, GE Aerospace has been a close technology partner to commercial airlines and the defence sector in India. Over 1,400 commercial engines help the fleets of Air India, Indigo and Akasa among others. GE Aerospace’s military engines and turbines power India’s Tejas light combat aircraft, naval frigates and helicopters. Our Bangalore research and engineering centre was set up 25 years ago and the researchers and engineers have contributed to the latest aviation technologies and have filed over 1,000 patent applications over the past two decades. Our Pune factory completed 10-years of operations this year and this factory and 13 Indian suppliers are part of the global supply chain and help manufacture parts for CFM LEAP, GE90, GEnx and GE9X,” a spokesperson of GE Aerospace, tells Biz@India.

Besides GE, other giants like Boeing and Lockheed Martin have also established deep supply chains in India, sourcing components for global platforms and partnering with Indian companies for manufacturing and maintenance. Boeing now works with over 300 Indian suppliers and supports more than 7,000 jobs in India while Lockheed Martin’s joint venture with Tata Advanced Systems produces airframe components for the C-130J and F-16, not just for India but for export worldwide.

The collaboration is increasingly two-way as even Indian defence companies have begun to supply their products to the US. A notable example is Bharat Forge that has signed contracts to supply artillery systems to American firms.

However, challenges persist. US defence technology is often expensive, with high lifecycle costs. Moreover, the US remains reluctant to share the most sensitive technologies, leading to a sticking point for Indian policymakers seeking greater self-reliance.

“When they do not give the technology fully, it is of little use. So that one factor still inhibits many of the decisions because Americans seem to be reluctant to part with cutting-edge technology,” says Gokhale.

“When President Trump hosted Prime Minister Modi at the White House in February, the two leaders determined that their governments redouble efforts to address export controls, enhance high technology commerce and reduce barriers to technology transfer between our two countries, while addressing technology security. They resolved to work together to counter the common challenge of unfair practices in export controls by third parties seeking to exploit overconcentration of critical supply chains,” a spokesperson of the United States Embassy in New Delhi, tells Biz@India.

Looking ahead, the future of Indo-US defence ties appears bright. Both nations are exploring collaboration in cutting-edge fields such as space, cyber security, quantum computing and artificial intelligence. The launch of the India-US Defence Acceleration Ecosystem (INDUS-X) in 2023 aims to promote collaborative innovation, research and codevelopment in advanced technologies.

“The US remains one of the go-to players in high technology for products like Artificial Intelligence, quantum computers, hypersonic missiles and semiconductors. This is how the relationship has become deeper and broader than ever before,” Gokhale adds.