Godrej Aerospace, a division of the Indian conglomerate Godrej Group, is planning to manufacture modules of GE 414 engines, aiming to become part of the supply chain for engines that will power India’s next-generation indigenous fighter jets, Reuters reported. The engines will be made jointly by GE GE and Hindustan Aeronautics Limited.

Deal Modalities and Technology Transfer

The specifics of the deal, announced during Prime Minister Narendra Modi’s state visit to the U.S. last month, are still being finalised. “We will have to study the tie-up done between GE and HAL… How the deal happens and how much technology transfer happens needs to be seen. We will have more clarity in 2-3 months,” said Maneck Behramkamdin, Associate Vice President and Business Head at Godrej Aerospace.

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Investment in Advanced Manufacturing

Godrej Aerospace plans to invest ₹2.50 billion ($30.26 million) to build a facility in Khalapur, Maharashtra for advanced manufacturing and assembly and integration facilities. This move aligns with the Modi government’s push for indigenous manufacturing and local sourcing of components for aerospace and defence.

Background

This development follows the US government’s approval for General Electric to transfer jet engine manufacturing technology to India. The agreement between GE and HAL, which is expected to be finalized during Prime Minister Modi’s visit to the US, will involve higher levels of technology transfer, making India the only US ally with such a deal. The co-production of jet engines will likely take place at HAL’s existing engine division in Koraput, Odisha, potentially benefiting around 500-600 Indian micro, small and medium enterprises (MSMEs).

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