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‘Fair trading relationship’: India in talks with US to buy combat vehicles, seal fighter jet engine deal
As Prime Minister Modi prepares for a crucial meeting with President Trump, India is negotiating the purchase and co-production of advanced combat vehicles and fighter jet engines with the US, marking a significant shift from its traditional reliance on Russian defense supplies.
India is in discussions with the United States for the purchase and co-production of combat vehicles, as well as finalising a deal for fighter jet engines, sources familiar with the matter told Reuters, as Prime Minister Narendra Modi prepares to meet President Donald Trump this week, Reuters reported.
As reported by Reuters, as the world's largest arms importer, India has traditionally relied heavily on Russia for defence supplies. However, last month, Trump urged Modi, who will visit Washington on Wednesday for a two-day trip, to purchase more U.S.-made security equipment and move towards establishing "a fair trading relationship."
India and the United States have been in protracted talks over the co-production of Stryker combat vehicles made by General Dynamics and also used by the U.S. Army.
They are also working to wrap up contract talks on co-production of fighter jet engines in India for the Indian Air Force, a deal agreed in 2023, said two sources who sought anonymity as they were not authorised to tall to the media, Reuters reported.
“We certainly wish to expedite the transaction which we would like to have with the United States,” Defence Production Secretary Sanjeev Kumar told reporters on Sunday, adding that such efforts were underway. But he did not elaborate.
“Officials of India's state-owned Hindustan Aeronautics Ltd (HAL) are set to meet in coming weeks with U.S. officials and the aerospace unit of General Electric, maker of GE-414 engines, for talks to finalise the deal by March,” the sources told Reuters.
New Delhi has started talks with the Trump administration on a plan to buy Stryker vehicles after they were demonstrated late last year for the Indian Army, two other sources said, also speaking on condition of anonymity.
The plan envisages that India will acquire a few hundred Strykers with a mounted anti-tank guided missile system, they added, and later co-produce them through a state-run firm, the sources said.
We certainly wish to expedite the transaction which we would like to have with the United States.
It was not immediately clear if the two potential deals would feature in talks between Modi and Trump. India's foreign ministry has said trade, defence cooperation and technology are among the issues to be discussed, Reuters reported.
(With inputs from Reuters)
Key Takeaways
- India is shifting its defense procurement strategy from Russia to the US.
- The discussions include co-production of combat vehicles and fighter jet engines.
- Strengthened defense ties may lead to a more balanced trade relationship between India and the US.
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Business NewsNewsWorld‘Fair trading relationship’: India in talks with US to buy combat vehicles, seal fighter jet engine deal
First Published:10 Feb 2025, 11:21 AM IST
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