In what marks a significant moment in India’s evolving military-industrial sector, US aerospace giant General Electric, GE has formally thrown its hat into the ring to co-develop the engine for the Indian Air Force’s ambitious fifth-generation stealth fighter, the Advanced Medium Combat Aircraft (AMCA). GE’s chairman and CEO, Larry Culp, confirmed the development in a recent interaction, reaffirming the company’s strategic focus on India as a vital defence and civil aviation market.

“We are very interested,” said Culp. “The US and India enjoy a very strong relationship. So we are here, we want to be supportive and are engaged as much as we possibly can be.”

This bid comes on the heels of India’s announcement to fast-track the AMCA project, a long-anticipated move that gained fresh urgency following Operation Sindoor, a precision cross-border military operation against Pakistan that once again underscored the need for high-performance indigenous air capabilities.

The most formidable technological hurdle for India’s stealth fighter remains the high-thrust engine, the beating heart of any fifth-generation combat platform. While India has made substantial progress on the design and avionics of the AMCA, engine development continues to demand international collaboration.

GE’s F414 platform is a proven design, already powering the Tejas Mark-2, but for the AMCA, the stakes and required thrust class are far higher. Rivals Safran (France) and Rolls-Royce (UK) are also in the fray, making this a tri-polar contest of industrial diplomacy, engineering precision, and geopolitical alignment.

Jetstream Diplomacy And US-India Military Ties Gain Thrust
GE’s intent to deepen aerospace ties with India comes against a backdrop of increasingly symbiotic Indo-US defence relations. The two nations signed the landmark GE-F414 engine co-manufacturing agreement during PM Modi’s state visit to Washington in 2023, a move that was widely seen as a template for deeper technological transfer and joint production.

With over 1,400 GE civilian and military engines already operating in India, and a backlog of over 2,500 units, Culp stated that India is not merely a customer, but a strategic fulcrum in the company’s long-term growth architecture. GE is also working to ramp up deliveries of the 99 F404 engines for the Tejas Mark-1A, after delays that had begun to raise eyebrows within India’s defence establishment. Deliveries finally began in March 2025, nearly two years behind schedule, but Culp assured that GE has entered a “super-cycle” of production acceleration.

“We’re making good progress… we’ve seen a double-digit increase in the number of receipts from suppliers over April and May compared to Q1,” said Culp, acknowledging the strain on global supply chains but expressing optimism about recovery.

India’s Defence Sector Highs – From Buyer to Builder
This deeper aerospace engagement is symbolic of a broader tectonic shift in India’s defence posture – from being a net importer of military hardware to a rising defence production and export power. According to recent Ministry of Defence data, 65% of India’s defence equipment is now produced domestically, a stark contrast to the 65-70% import dependency witnessed a decade ago.

In FY 2023-24, India’s defence production touched ₹1.27 lakh crore, a staggering 174% increase from 2014-15 levels. Of this, the private sector accounted for 21%, with India aiming to triple its total defence output to ₹3 lakh crore by 2029.

The export story is equally striking. Defence exports surged to ₹23,622 crore in FY 2024-25, a 12% increase over the previous year and a 34-fold jump from FY 2013-14. Indian-origin weapon systems, ammunition, radars, and platforms are now exported to over 100 countries, a feat unheard of just a few years ago.

“India exports to around 80 countries aiming for ₹50,000 crore in exports by 2029,” the MoD stated in April, adding that this transformation underscores global confidence in Indian defence platforms and systems.

Building Indigenous Muscle, From ATAGS to AI Warfare
India’s quest for self-reliance is not limited to aircraft. In a major push to artillery firepower, the Cabinet Committee on Security (CCS) recently approved the procurement of 307 units of the Advanced Towed Artillery Gun System (ATAGS) and 327 gun towing vehicles, under the ‘Buy Indian – IDDM’ category at an estimated cost of ₹7,000 crore. Developed by DRDO, in collaboration with Bharat Forge and Tata Advanced Systems, ATAGS is one of the world’s most advanced 155mm artillery systems with a firing range of over 40 km.

Further, innovation platforms like iDEX (Innovations for Defence Excellence) and SAMARTHYA are pushing the frontier in AI-based warfare, cyber defence, and next-gen indigenous weaponry. Since its launch in 2018, iDEX has signed 430 contracts, backed 619 startups and MSMEs, and helped indigenise over 14,000 defence components under the SRIJAN scheme.

The government has allocated ₹449.62 crore to iDEX and its sub-scheme ADITI (Acing Development of Innovative Technologies with iDEX) for 2025-26 – a clear indication that the state is betting on grassroots innovation to fuel the next wave of defence capabilities.

Amid an intensifying push for Atmanirbhar Bharat and a reshaped geopolitical developments, India’s defence exports reached an all-time high of ₹23,622 crore ($2.76 billion) in FY 2024–25, reflecting a sharp 12.04% year-on-year growth from ₹21,083 crore in the previous fiscal.

This milestone not only shows India’s emergence as a credible arms exporter but also comes at a time of growing regional instability – particularly heightened India-Pakistan tensions. 

In a post on X (formerly Twitter), the Ministry of Defence (MoD) stated:

“India exports to around 80 countries, aiming for ₹50,000 crore in defence exports by 2029, strengthening its global defence manufacturing footprint.”

To contextualize this dramatic leap, India’s defence exports stood at just ₹686 crore in FY 2013–14. The current figure represents a 34-fold increase in a little over a decade marking a historic transformation in India’s defence posture and industrial capability.

Public Sector Performance Surges, But Private Players Still Lead
A breakdown of FY25 numbers reveals that the private sector contributed ₹15,233 crore, while Defence Public Sector Undertakings (DPSUs) accounted for ₹8,389 crore in export revenues. This represents a 42.85% increase for DPSUs over the previous fiscal, when they recorded ₹5,874 crore. The private sector held steady compared to its FY24 contribution of ₹15,209 crore.

These figures indicate a growing international acceptance of Indian-built systems from advanced naval platforms and artillery systems to radar networks and aerospace components.

Export Approvals and Defence Exporters on the Rise
The Department of Defence Production continues to streamline its backend operations through a dedicated online export authorisation portal. In FY25, the government issued 1,762 Export Authorisations, up from 1,507 the previous year – a 16.92% increase. More significantly, the number of registered defence exporters grew by 17.4%, showcasing expanding participation across India’s industrial base.

This rising base includes private aerospace startups, MSMEs, and component manufacturers many of whom are now integrated into global defence supply chains, including those of Western OEMs.

Policy Overhauls Fuel Export Surge
Behind this export boom lies a decade of defence policy reform. In recent years, the government has:

–Simplified industrial licensing and removed licensing requirements for many non-core components.

–Extended licence validity to 15–18 years, giving firms long-term clarity and investment security.

–Streamlined the Standard Operating Procedures (SOPs) for export approvals.

–Introduced tax and compliance reforms to support private sector R&D and manufacturing for defence.

These changes have made it significantly easier for Indian defence firms especially private players to build, certify, and ship high-value systems to global clients.

Strategic Signal to the World
India’s export rise is not just about commercial value it’s a geopolitical signal; with Chinese assertiveness in the Indo-Pacific, instability in Pakistan and Afghanistan, and growing mistrust between traditional Western partners, India is positioning itself as a trusted, neutral, and capable arms exporter.

Simultaneously, the international footprint of Indian weapons – from coastal patrol boats sold to African and Southeast Asian nations to ammunition supplied to Middle Eastern allies is also growing. As Western defence contractors struggle with cost overruns and production bottlenecks, India’s reliable timelines and competitive pricing offer a compelling alternative.

What India Exports Today
India’s export portfolio has rapidly diversified in the last five years. The country now ships: Ammunition and missiles, Naval patrol boats and weaponised platforms, Radar and surveillance systems, Loitering munitions, drones, and UAVs, Subsystems and components for international OEMs.

These exports are not just being made to small economies, they include contracts with Southeast Asia, Africa, Latin America, and even Europe, in some cases as part of tri-lateral development projects.

Make in India

At the heart of this export transformation is a strategic industrial shift:
India has moved from importing 65–70% of its defence equipment to manufacturing 65% domestically as of FY25. The government aims to hit ₹3 lakh crore in defence production by 2029.

This is being enabled by:

16 Defence PSUs, over 430 licensed private companies, and 16,000+ MSMEs

Flagship programmes like SRIJAN, iDEX, and SAMARTHYA, driving R&D in AI, unmanned systems, and cyberwarfare

The new positive indigenisation list, banning the import of over 3,000 items now sourced from within the country

With over 14,000 items already indigenised, the MoD says India is now developing full-spectrum platforms: tanks, utility helicopters, missile systems, warships, electronic warfare platforms, and specialist vehicles.

The Last Bit, India’s Defence Diplomacy Finds Its Arsenal
India’s record-setting defence exports are more than just a ledger entry, they reflect the country’s evolution as a strategic global player. With credible domestic manufacturing, policy clarity, and a fast-expanding global customer base, India is no longer at the mercy of foreign suppliers.

Instead, New Delhi is now shaping a storyline where Indian weapons systems are not only built for Indian forces but for the world’s battlefields, in line with India’s vision of becoming a net security provider in the Indo-Pacific and beyond.

The target of ₹50,000 crore in defence exports by 2029 is no longer aspirational. It’s achievable. And if India plays its cards right, it may just get there ahead of schedule.

At the same time, the next few years will be critical in determining how India balances its ambition of strategic autonomy with the realities of complex international collaborations. The GE bid for the AMCA engine is not just a business proposition; it is emblematic of a shifting global order where India is no longer just a marketplace for global defence giants, it is an assertive player, shaping outcomes.

With a multi-pronged strategy combining public sector heft, private sector agility, and startup innovation, India’s military-industrial base is undergoing nothing short of a renaissance. Whether it’s through stealth jets, indigenised artillery, or cyber-resilient warfare platforms, India intends to build, export, and lead.