An in-principle agreement(likely a MoU) will likely be signed when Prime Minister Narendra Modi visits USA from June 21st. GE F414 will be manufactured in India with a higher level of ToT compared to similar US deals with South Korea or Sweden. The deal will see HAL manufacture F414 jet engines in India for Tejas Mk2 & AMCA Mk1 fighter jets.
US Government has given the necessary clearances for the Transfer of Technology (ToT) of GE Engine to India. India will hold the licence to make GE F414 engines for Tejas Mk2 & AMCA Mk1 along with possible usage in TEDBF project of Indian Navy. This could mean a production run of 300+ engines easily. The localisation content in the engine will likely be upto 70%. USA will also transfer critical technology which India can use in domestic engine developments. USA is unlikely to give Intellectual Property Rights to India, but will try to offer an upgraded GE F414 engine for Tejas MK2. Currently Rolls-Royce of UK, Safran of France and GE of USA are vying to partner India for power plant of AMCA Mk2 project.
Manufacturing in India
About 500-600 Indian MSME could benefit from the agreement. The GE will enter into a contract with HAL for manufacturing of engines in India. The Govt of India is still yet to decide the place of engine manufacturing.
India has in past manufactured AL-31FP engines for Su30MKI fighter jets & RD33 Series 3 engines for Mig29 UPG fighter jets under Russian licence and ToT. India has also manufactured Adour engines for Jaguar & Hawk aircrafts.
Various high level visits between India & USA have preceded for laying the groundwork for the important deal. These include NSA & defence minister level visits. Apart from engines MQ9B will be on the cards along with P8I aircrafts when Prime Minister Modi lands in the US.