India in talks with US to buy combat vehicles, seal fighter jet engine deal as Modi visits, sources say

By Shivam Patel

NEW DELHI (Reuters) - India is in talks with the United States for the purchase and co-production of combat vehicles as well as finalising a fighter jet engine deal, people familiar with the matter said, as Prime Minister Narendra Modi meets President Donald Trump this week.

The world's biggest arms importer, India traditionally relies mainly on Russia. Last month, Trump asked Modi, who heads to Washington on Wednesday for a two-day visit, to buy more U.S.-made security equipment and 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 U.S. 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 tall 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 U.S. officials and the aerospace unit of General Electric, maker of GE-414 engines, for talks to finalise the deal by March, the sources said.

GE, HAL, General Dynamics, the U.S. 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.

(Reporting by Shivam Patel in New Delhi; Editing by Clarence Fernandez and Michael Perry)