India and the United States (US) are set to strengthen their strategic defence relations by signing a 10-year framework agreement. This pact will focus on deeper military cooperation, joint production ventures in aerospace, and streamlined defence procurement initiatives, including key engine deliveries for India's Tejas aircraft programme.
Defence Minister Rajnath Singh and US Defence Secretary Pete Hegseth have agreed to formalise a fresh 10-year US-India Defence Framework during their next in-person meeting in 2025. This development was confirmed in a Pentagon statement released on July 2, 2025.
It aims to build upon the February 2025 strategic goals established by President Donald Trump and Prime Minister Narendra Modi. Both leaders recognised the need for expanding joint capabilities and shared logistics frameworks to address regional security challenges and enhance trust-driven defence engagement between the 2 democracies.
One of the focal points of the talks was India's urgent requirement for GE F404 engines to power its Tejas Light Combat Aircraft. The delivery delay from GE Aerospace has disrupted HAL’s timeline to deliver the Tejas Mark 1A series to the Indian Air Force.
Singh stressed the need to accelerate shipments. There are parallel talks under way for a critical joint manufacturing project involving GE’s F414 engines, which may be co-produced in India by HAL. This initiative is expected to localise a significant segment of the defence supply chain and reduce import dependency.
Read More: Best Defence Sector Mutual Funds In July 2025: HDFC Defence Fund and More Based on AUM!
India and the US are keen on improving supply chain integration for defence manufacturing. With the upcoming agreement, emphasis will be on boosting interoperability, standardisation of protocols, and expanded logistics sharing. This bilateral move also opens avenues for co-developing innovative technologies and participating jointly in multinational exercises.
These efforts are poised to amplify India's ambition to become a self-reliant defence powerhouse and upgrade its domestic manufacturing infrastructure with American technological backing.
Another highlight from the discussion was the intention to collaborate more closely with like-minded partners. As global security dynamics evolve, both countries acknowledge the importance of a united front with allies in the Indo-Pacific region. The framework will likely include mechanisms to facilitate coordinated defence efforts, ensure rapid response capabilities, and maintain regional peace and deterrence.
On July 3, 2025, Hindustan Aeronautics share price opened at ₹4,881.00 on NSE, below the previous close of ₹4,898.30. During the day, it surged to ₹4,971.80 and dipped to ₹4,881.00. The stock is trading at ₹4,939.90 as of 12:42 PM. The stock registered gain of 0.85%.
Over the past week, it has moved up by 0.86%, over the past month, it has declined by 2.60%, and over the past 3 months, it has moved up by 14.37%.
Defence stocks such as Hindustan Aeronautics, BEL, BEML, Paras Defence, and Data Patterns drew investor attention on Thursday, July 3, following the announcement of a 10-year defence cooperation agreement between India and the United States.
The upcoming 10-year India–US Defence Framework reaffirms their long-term strategic partnership. With emphasis on co-production, engine delivery acceleration, and enhanced defence ties, this agreement sets the stage for mutual growth and capability building in line with global defence readiness and regional security interests.
Published on: Jul 3, 2025, 1:50 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
