India is negotiating with the United States for the purchase and co-production of combat vehicles and the finalization of a fighter jet engine deal, as Prime Minister Narendra Modi meets U.S. President Donald Trump this week. The discussions mark a significant step in India’s efforts to diversify its defense partnerships beyond Russia, its traditional supplier.
According to sources, India and the U.S. are progressing in talks over co-producing Stryker combat vehicles, manufactured by General Dynamics (NYSE:GD) and widely used by the U.S. Army. Additionally, discussions are advancing on a deal to co-produce fighter jet engines in India for the Indian Air Force. This agreement, initially established in 2023, involves General Electric (NYSE:GE) and India’s Hindustan Aeronautics Ltd (NSE:HIAE).
India’s Defence Production Secretary Sanjeev Kumar emphasized the country's intent to expedite the transaction but refrained from disclosing details. HAL officials are set to meet with U.S. representatives and GE’s aerospace division in the coming weeks to finalize the GE-414 engine deal by March.
Negotiations on acquiring Stryker vehicles, which were demonstrated for the Indian Army last year, have also begun with the Trump administration. India plans to procure several hundred Strykers equipped with anti-tank guided missile systems and later co-produce them through a state-run enterprise.
It remains unclear whether these potential agreements will be discussed during Modi and Trump’s talks. However, India’s foreign ministry has confirmed that trade, defense collaboration, and technology will be key topics. Neither GE, HAL, General Dynamics, nor official U.S. or Indian defense authorities have commented on the ongoing negotiations.
With India being the world’s largest arms importer, these discussions highlight its growing defense ties with the U.S. while aiming to enhance domestic manufacturing capabilities.