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India and the United States are on the verge of finalizing a groundbreaking deal for the transfer of technology (ToT) for the F414-GE-400 turbofan engines, which will be manufactured in India. The US Congress has granted approval for the deal, with no objections from its members, clearing the path for negotiations on pricing before the agreement is officially signed.

The F414-GE-400 turbofan engine, when produced by General Electric (GE) in its facilities, has an average cost of approximately $3.71 million per unit. However, even with domestic production in India, the price is expected to remain below the $4 million per unit mark. This cost-efficiency is attributed to the large order size and the involvement of numerous private sector companies in local engine manufacturing.

India has committed to procuring over 400 engines that will be produced domestically. The phased approach to achieving local indigenous content aims to reach 80% by the end of this decade. General Electric has pledged to transfer 100% of the technology, as the utility of these engines will decrease with the closure of F-18 production in the coming years, reducing the need for the development of new engines.

This landmark deal signifies a significant step forward in India’s efforts to enhance its defense capabilities through advanced technology transfer and indigenous production. It reinforces the strong strategic partnership between India and the United States in the defense sector, setting the stage for increased self-reliance and technological advancement in India’s defense industry.

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