India and the United States are on track to finalize a landmark defense agreement by March 2025, focusing on the joint production of advanced F-414 jet engines within India. This development, highlighted by Hindustan Aeronautics Limited (HAL) Chairman and Managing Director Sunil Bharti in an exclusive interview, signifies a significant advancement in the defense relationship and technological collaboration between the two nations.
The initiative was initially introduced during Prime Minister Narendra Modi’s visit to Washington in 2023, though it faced delays as negotiations regarding technology transfer progressed. Bharti confirmed that discussions surrounding the transfer of nearly 80 percent of critical technologies have mostly been resolved, with the final commercial terms currently being finalized. The anticipated signing of the agreement is expected to take place within the current financial year.
The F-414 engine, known for its role in powering fighter jets used by the United States, Sweden, and Australia, represents a next-generation propulsion system that will be manufactured in India as part of this agreement. This development is particularly noteworthy given the historically restrictive U.S. policies regarding the export of sensitive defense technologies.
The F-414 engines are intended to enhance India’s Tejas Light Combat Aircraft (LCA) Mark 2 and the prototype of the forthcoming fifth-generation Advanced Medium Combat Aircraft (AMCA). The Tejas Mk2 is poised to incorporate a higher thrust engine, increased payload capacity, modern avionics, and advanced electronic warfare systems, marking a substantial upgrade from earlier models. India is actively procuring approximately 180 Tejas Mk1A jets as part of its effort to replace its aging MiG-21 fleet, with a financial commitment of ₹1.15 lakh crore.
The AMCA, which is being developed as a stealth, deep-penetration fighter, will play a vital role in the future of India’s aerial combat capabilities, alongside the various Tejas models. This collaboration with the United States on the F-414 engines is expected to propel India’s aspirations in aerospace, bolstering its strategic autonomy and enhancing its manufacturing ecosystem.
In conjunction with these developments, HAL is also pursuing other significant defense projects, including a ₹62,700 crore contract to provide 156 Light Combat Helicopters (LCH) ‘Prachand’ to the Indian armed forces. The Prachand, notable as India’s first indigenously developed attack helicopter capable of operations at elevations exceeding 4,500 meters, is projected to enter full-scale production by 2028. To date, 15 limited series helicopters have already been delivered to the military.
The Prachand will be outfitted with anti-tank guided missiles, rockets, and air-to-air weaponry, significantly enhancing India’s indigenous combat capabilities under the Atmanirbhar Bharat initiative.
Together, the F-414 engine agreement, Tejas Mk2, AMCA, and Prachand helicopter projects illustrate India’s comprehensive strategy aimed at modernizing its air force and decreasing its dependence on foreign platforms. The forthcoming joint production of engines with the U.S. represents a foundational element of this strategy, heralding a new chapter in Indo-U.S. defense cooperation.
