New chapter of America-India tariff controversy and defense agreement

US President Donald Trump has announced an additional 25 percent rate of India. According to Indian Time, this rate is implemented Wednesday morning from 9.30am. This simply means that a total of 50 percent rates will apply to India. This decision can make business relations between India and the US more stressful. But in the meantime, a major defense agreement between the two countries has also reached the final phase, which will make strategic relationships a new power. New Defense Agreement According to 113 engine defense sources for 97 Tejas aircraft, the agreement to buy 113 GE-404 engines between India and the US is almost decided. These engines are purchased for India’s indigenous light fighter aircraft LCA Mark 1a Tejas. The estimated price of this agreement is more than one billion US dollars (about $ 87 billion). This agreement differs from the previous contract. Earlier, India signed a contract to buy 99 GE-404 engines from the US, which was for 83 Tejas Mark 1A aircraft. The new agreement is for 97 aircraft coming. Why is this agreement important? Despite the tariff dispute between the Indo’s, this defense agreement is important because Hindustan Aeronautics Limited (HAL) has to ensure a continuous engine. The indigenous Tejas plane program will be the backbone of the Indian Air Force, so no impediment in the engine supply can affect national security. India’s defense experts believe that if HAL continues to get engines on time, Tejas aircraft will not only be produced in time, but also the makeup in India Defense program or India will be strengthened. Under the delivery time line defense agreement, it was decided that India will gradually receive from the US engine stock. The delivery of 83 aircraft already ordered will be completed by 2029-30. The new 97 aircraft are delivered at 2033-34. The US company General Electric (GE) will provide two engines to India each month. This schedule will meet the long -term needs of the Indian Air Force and will maintain the power of the Tejas fleet for the coming decades. The large amount of technology transfer is interesting that a separate agreement between Hal and GE is also under discussions. Under this agreement, India will buy the GE-414 engine, which will cost about $ 1.5 billion. The biggest feature of this agreement is that it will include technology transfer of up to 80 percent. This technology transfer will not only provide the ability to compile the engine, but also to create an engine in the future. The GE-414 engines are used for the upcoming LCA Market 2 and AMCA programs. This agreement will be an important step towards India’s defense of self -defense. Strategic importance between India and the US takes place this defense agreement at a time when the business relationships between the two countries go through tariff controversy. On the one hand, the US tried to increase import tax on India and put pressure on India, and on the other hand, India chose the way of cooperation in the defense sector. Experts believe that defense cooperation will maintain the balance in the relationship between the two countries. The US sees India as a reliable strategic partner in Asia, while US technology and engine are very important for India to increase its air force capacity. Share this story -tags