On PM Modi’s US visit, India clinches chip-making plant, jet engines deals

Here are the key business highlights of PM Modi’s state ongoing visit:

• Chip making: Intel announced plans to invest $18 billion in two new chip factories in Ohio, creating 3,000 jobs. This is the largest single investment in semiconductor manufacturing in U.S. history.
• Jet engine deal: GE Aviation and Hindustan Aeronautics Limited (HAL) signed a memorandum of understanding to jointly develop and manufacture jet engines for commercial aircraft. This is the first major collaboration between a U.S. and Indian company in the aerospace sector.
• Space cooperation: NASA and the Indian Space Research Organization (ISRO) signed a joint statement of intent to collaborate on a number of space projects, including a lunar mission.
• Clean energy: ExxonMobil and the Indian government signed a memorandum of understanding to explore opportunities for cooperation in the clean energy sector.
• Defense cooperation: The U.S. and India signed a number of agreements to strengthen defense cooperation, including a logistics agreement that will allow the two countries to share supplies and equipment.

The visit is seen as a major step forward in the U.S.-India strategic partnership, and it is expected to lead to even more cooperation in the years to come. Some of the additional details about the chip making and jet engine ddealsl are as below –

• The Intel investment will create 7,000 construction jobs and 3,000 permanent jobs at the new factories. The factories are expected to be operational by 2025.
• The GE Aviation and HAL deal is worth $1 billion. The two companies will jointly develop and manufacture the LEAP-1B engine, which is used on the Boeing 737 MAX aircraft.

Pertinently, the two countries are increasingly becoming partners in the global supply chain for semiconductors and other high-tech products. This cooperation is expected to boost economic growth and create jobs in both countries.