The United States government has approved the transfer of manufacturing technology for GE F414 jet engine components to India, the Pentagon confirmed, in a move defence analysts are describing as one of the most significant technology sharing decisions in the history of the bilateral relationship.

The approval allows Hindustan Aeronautics Limited to manufacture critical engine components locally for India's Light Combat Aircraft Mk2 programme — a capability that until now no country outside of established Western alliances has received.

The deal, worth approximately $1.4 billion over twelve years, is structured as a co-production rather than a pure transfer, requiring Indian engineers to work alongside GE personnel in both the US and India to develop indigenous manufacturing competence.

The decision follows years of lobbying by Indian defence officials who argued that defence partnerships premised on buying finished products do not serve India's strategic autonomy goals. Pentagon officials acknowledged the shift, citing India's importance as a counterbalance to Chinese power in the Indo-Pacific.