GE’s Increased Technology Transfer Demands Impact India’s Tejas Mk2 Program
General Electric (GE) has raised its asking price by $500 million for the licensed production of F-414 engines in India, citing an expansion in the Transfer of Technology (ToT) agreement with Hindustan Aeronautics Limited (HAL). This increase brings the total deal value to $1.5 billion and has introduced delays as both parties renegotiate terms. The enhanced ToT aims to provide India with greater self-reliance in jet engine technology, a key objective for the nation’s defense industry.
HAL has established a Contract Negotiation Committee to manage the complexities of the negotiation and is reviewing technical documents provided by GE to evaluate the proposed technology transfer. Despite the price hike and subsequent delays, HAL remains confident in finalizing the agreement by the end of March 2025. However, concerns are growing that protracted negotiations may impact the timeline of India’s Tejas Mk2 program, which relies heavily on these engines.
This situation underscores India’s ongoing efforts to achieve self-reliance in critical defense technologies. In addition to collaborating with global manufacturers like GE, India is actively pursuing the development of its own indigenous jet engine and may soon announce a partnership with an international partner to accelerate this endeavor. The advanced ToT offered by GE in the F-414 deal is expected to be instrumental in bolstering India’s domestic jet engine manufacturing capabilities.
While the increased cost presents a hurdle, the potential benefits of the expanded technology transfer are substantial for India’s long-term defense goals. The coming weeks will be crucial as HAL and GE strive to reach a mutually agreeable outcome that balances cost considerations with the strategic importance of enhanced technological know-how.
