The partnership between GE and HAL, or in other words, General Electric and Hindustan Aeronautics Ltd, will have a ripple effect. A partnership that would strengthen the Indo-US ties along with the transfer of technology. The 16-year-long partnership is ready to extend a further success with the new order. How did the association arrive?
Before we understand the partnership between these two organizations, it is essential to analyze who they are individually and what they stand for.
With its headquarters in Boston, General Electrics or GE was set up in 1892. The American organization has changed the world from transportation to power to devices while maintaining the environment; GE takes the win in all fields from the 1870s to the present. The partnership in 1902 with India has pioneered solutions for the future, from setting up the hydroelectric power in Karnataka for Indian Railways. GE presently functions for 12 local manufacturing plants and five technical centers, serving some of the most significant economic sectors, including aviation, energy, power, and renewable energy. The revenue amounts to $14.486B.
Located in the Silicon Valley of India, Bengaluru, HAL or Hindustan Aeronautics Ltd, has a rich history from its inception from the 1940s. The defense and aerospace enterprise is among the most senior and extensive manufacturers worldwide. Its aircrafts were built for various purposes- from agriculture to training to fighter, from observation to passenger, helicopters, and gliders. Name it all, HAL has numerous accounts of reputation. With its operation agreements- international and domestic, HAL has opened its branches to museums to Defence Research and Development Organisation. The revenue amounts to $3.3 billion.
As per a trail of news articles covered by the Economic Times, speculations was concluded that GE and HAL will have a partnership for the co-manufacturing of fighter jets for India. From US Defence Secretary Lloyd Austin and Indian Defence Minister Rajnath Singh to have bilateral defense talks, at the cost of above $30 billion, to provide 30 MQ-9B and armed drones for India to have a 'ripple effect' across defense industries.
Reuters provides insight into the deal between GE and HAL to be signed for partnership either before or during Prime Minister Shri Narendra Modi's official state visit to Washington DC on June 22, 2023. Moreover: "The deal is not finalised and also requires notification to the U.S. Congress, according to two of the people briefed on the arrangement. Washington maintains strict controls over what domestic military technology can be shared or sold to other countries."
CNBC stated: "A partnership of this sort would require the transfer of technology and therefore approval by Congress to move forward. Experts say once the U.S. State Department formally notifies congressional committees on Capitol Hill of the GE partnership, a 30-day period to approve the deal would begin."
Business Today stated "HAL is using a lighter GE engine for the 83 light combat aircraft it is manufacturing for the Indian air force. However, India intends to produce more than 350 fighter jets for its air force and navy over the next two decades, which could be powered by the GE 414."
The question arrives, how will this change the power dynamics in terms of security and authority change for both India and the United States? With both the countries in their state-of-the-art military equipment and cutting-edge technology, the future holds new ventures for both the countries.
Edited by Whitney Edna Ibe
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