Explained | Why is the U.S.-India fighter jet deal important?

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Key Points

The U.S.-India joint statement mentions the landmark signing of a Memorandum of Understanding between General Electric (GE) and Hindustan Aeronautics Limited (HAL) for the manufacture of GE F414 jet engines in India, for the Light Combat Aircraft (LCA) Mk2..

If the deal goes through, it will mean transfer of almost the entire engine technology compared to the Engine Development Agreement worked out in 2012 between GE and HAL for the F414 engine with 58% technology transfer, officials said..

The F414 engines are meant to power the indigenous LCA-Mk2, a larger and more capable variant of the LCA currently in service, and also the initial version of the fifth generation Advanced Medium Combat Aircraft (AMCA) that is under development..

This deal makes GE the front runner for another Indian proposal to jointly produce a 110kN jet engine for the AMCA-Mk2 for which Safran of France and Rolls Royce of the U.K. are competing and have submitted detailed technology transfer proposals..

According to GE, a total of 75 F404 engines have been delivered and another 99 are on order for the LCA Mk1A, while eight F414 engines have been delivered as part of an ongoing development programme for LCA Mk2...

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