India 'negotiating with US' to buy, co-produce combat vehicles

NEW DELHI: Negotiations between India and United States are in progress as the former seeks to buy and co-manufacture war vehicles, apart from sealing a deal for fighter jet engine, said insiders, ahead of Indian Prime Minister Narendra Modi’s meeting with US President Donald Trump later this week.

India, the largest arms importer in the world, has historically banked heavily on Russia. Trump last month pushed Modi, who is scheduled to visit Washington for two days on Wednesday, to purchase more security equipment made in the United States and to move "toward a fair trading relationship".

"I look forward to meeting my friend, President Trump," Modi said in a statement on Monday before leaving for France and the United States.

"This visit will be an opportunity to build upon the successes of our collaboration in his first term and develop an agenda to further elevate and deepen our partnership, including in the areas of technology, trade, defence, energy, and supply chain resilience."

Modi is preparing additional tariff cuts ahead of his meeting with Trump that could boost American exports to India and avoid a potential trade war, government officials said.

India and the United States have been in protracted talks over the co-production of Stryker combat vehicles made by General Dynamics and also used by the US Army.

They are also working to wrap up contract talks on co-production of fighter jet engines in India for the Indian Air Force, a deal agreed in 2023, said two sources who sought anonymity as they were not authorised to talk to the media.

"We certainly wish to expedite the transaction which we would like to have with the United States," Defence Production Secretary Sanjeev Kumar told reporters on Sunday, adding that such efforts were underway. But he did not elaborate.

Officials of India's state-owned Hindustan Aeronautics Ltd (HAL) are set to meet in coming weeks with US officials and the aerospace unit of General Electric (GE) maker of GE-414 engines, for talks to finalise the deal by March, the sources said.

GE, HAL, General Dynamics, the US embassy in New Delhi and Indian defence and foreign ministries did not immediately respond to requests for comment.

New Delhi has started talks with the Trump administration on a plan to buy Stryker vehicles after they were demonstrated late last year for the Indian Army, two other sources said, also speaking on condition of anonymity.

The plan envisages that India will acquire a few hundred Strykers with a mounted anti-tank guided missile system, they added, and later co-produce them through a state-run firm, the sources said.

It was not immediately clear if the two potential deals would feature in talks between Modi and Trump, whose warning on Sunday that he would introduce new 25% tariffs on all steel and aluminium imports into the United States could also hurt Indian companies.