As Prime Minister Narendra Modi is set to meet with US President Donald Trump, India and the United States are reportedly engaged in discussions regarding the purchase and co-production of combat vehicles, along with finalizing a fighter jet engine deal.

India, the world's largest arms importer, traditionally relies mainly on Russia but is seeking to diversify its defence procurement sources]. These talks with the U.S. align with President Trump's request for India to acquire more U.S.-made security equipment to promote a "fair trading relationship".

Stryker Combat Vehicles

The discussions involve the potential co-production of Stryker combat vehicles, manufactured by General Dynamics and utilized by the U.S. Army. New Delhi has initiated talks with the Trump administration to procure Stryker vehicles, demonstrated to the Indian Army the previous year. The plan includes acquiring a few hundred Strykers equipped with anti-tank guided missile systems, with the future prospect of co-producing these vehicles within India through a state-run enterprise. On January 6, 2025, the United States approved proposals enabling India to become the first foreign producer of the Stryker armoured fighting vehicle.

The acquisition of Stryker armoured vehicles could significantly impact India's military strategy in several ways:

Co-production of Stryker vehicles is expected to enhance India's military capabilities, especially along its border with China. These vehicles are versatile and suited for rapid deployment in diverse terrains. The move aligns with India's strategy to reduce its reliance on Russian-made equipment and expand its domestic defence industry.

The Stryker vehicles are expected to be deployed primarily along India's border with China, with additional positioning along the Pakistan border. Discussions surrounding the potential acquisition of the Stryker armoured vehicle from General Dynamics Land Systems highlight India’s strategic decision-making in modernizing its defence infrastructure.

The acquisition is part of a broader defence collaboration with the US, including advanced munitions and maritime technologies, aimed at strengthening joint development, diversifying supply chains, and enhancing regional defence capabilities in the Indo-Pacific. The plan includes initial off-the-shelf acquisitions via the US Foreign Military Sales framework, followed by co-production in India and eventual co-development of variants.

The deal aims to replace the roughly 2,000 Russian lightly armoured and armed BMP-2 personnel carriers in service with the Indian army.

Some experts are concerned about the impact on indigenous programs, given the success of the DRDO in developing and manufacturing ICVs indigenously. There are also concerns that co-production of Stryker vehicles would offer little value to the country because indigenous options are readily available.
Strategic Alignment with the US: India's strategic concerns converge with those of the US regarding China, making US-offered weapon systems potentially beneficial for the Indian military.

Local manufacturing of Strykers could position India as a regional defence hub, with the potential to export these vehicles to other countries. The deal revolves around the production of 530 Stryker vehicles, which would support ten mechanized infantry battalions in India.

Fighter Jet Engine Deal

India and the U.S. are working to wrap up contract talks for the co-production of fighter jet engines within India, a deal agreed upon in 2023. Officials from Hindustan Aeronautics Ltd (HAL) are scheduled to meet with representatives from General Electric and U.S. government officials to finalize a deal involving GE-414 engines by March.

India's Defence Production Secretary, Sanjeev Kumar, has expressed the country's eagerness to expedite the transaction with the United States.

The deals are expected to be part of broader bilateral talks focusing on trade, defence cooperation, and technology. These discussions highlight the strategic importance of defence and economic collaboration between India and the U.S.

Agencies