India and France Ink $7.2B Fighter Jet Engine Deal
India and France have signed a ₹60,000 crore ($7.2B) deal centered on the transfer of technology for fighter jet engines. The agreement is a significant development in international aerospace and defense M&A, blending advanced technology with strategic geopolitical partnership.
This partnership centers on French firm Safran and India's Defence Research and Development Organisation (DRDO) co-developing a next-generation 120 kN thrust engine. The engine is slated to power India's fifth-generation Advanced Medium Combat Aircraft (AMCA), with test flights targeted for 2028 and serial production by 2035. A key differentiator in this government-to-government deal is the 100% transfer of technology (ToT), granting India joint ownership of the intellectual property (IP). This structure is a significant departure from typical procurement deals and is critical for India's long-term goal of achieving self-reliance in defense manufacturing, a core tenet of its "Make in India" policy. France's Safran secured the contract over a competing bid from the UK's Rolls-Royce. The French proposal was reportedly more aligned with India's demand for deep technology sharing, local manufacturing control, and shared design authority, rather than a limited license to build an existing foreign design. This engine deal is part of a much larger industrial footprint for Safran in India. The company is investing €200 million in a Hyderabad facility for the maintenance, repair, and overhaul (MRO) of LEAP commercial engines, set to open in 2026. An adjacent €40 million facility will service the M88 engines of the Indian Air Force's Rafale jets. The collaboration builds on a 70-year defense relationship that began with a 1953 deal for Dassault Ouragan jets. More recently, the two nations have partnered on the Shakti engine for HAL's Dhruv helicopters and completed the delivery of 36 Rafale fighter jets to the Indian Air Force. Financially, Safran aims to triple its revenue in India to over €3 billion by 2030, with half of that generated by its Indian facilities. The company also plans to increase its sourcing from within India by five times, deepening its integration with the local aerospace ecosystem. The core technology from this fighter jet engine may also be adapted for naval use. Experts anticipate the engine's gas generator could be used to develop indigenous marine gas turbines, potentially powering the Indian Navy's future destroyers and frigates.
