India-US Defence Pact Boosts Market Confidence, HAL, BEL, BDL In Spotlight After Strategic Framework Update
Key Points:
- India-US to sign a 10-year strategic defence framework agreement.
- HAL may benefit from jet engine deals and strong aerospace role.
- Pact supports defence manufacturing, tech sharing, and exports.
Mumbai: India and the United States have agreed to sign a new 10-year defence framework, which aims to improve military cooperation and boost defence production together. This update has brought major attention to defence stocks in India, especially companies like Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), and Bharat Dynamics Ltd (BDL).
According to a statement from the Pentagon, this agreement was discussed during a phone call between Indian Defence Minister Rajnath Singh and US Defence Secretary Hegseth.
What’s in the Defence Framework?
The new 10-year plan includes:
- Joint defence production between Indian and US companies
- Technology sharing and deeper industrial cooperation
- Faster movement on pending defence deals like jet engine supplies
The Pentagon called India a “key defence partner” in South Asia and said both countries have made “considerable progress” since the joint statement signed by President Trump and Prime Minister Modi in February 2025.
GE Jet Engine Deal in Focus
During the call, Rajnath Singh requested faster delivery of GE F404 engines that are used in the Tejas Light Combat Aircraft. The delay from GE Aerospace has caused HAL to miss deadlines for delivering the Tejas Mark 1A to the Indian Air Force.
Singh also pushed for quick finalization of a major deal between HAL and GE Aerospace to jointly produce F414 engines in India. This could be a game-changer for India’s aerospace manufacturing.
Market Reaction: HAL Gains, BEL Flat, BDL Falls
HAL saw early trade gains and was trading higher at Rs 4,927.30, up Rs 29.00 (0.59 percent) by 10:49 AM.
Investors are positive about HAL’s future due to its strong position in aerospace and defence manufacturing.
BEL, which makes electronic and radar systems, had a small dip of Rs 0.10 (0.023 percent), trading at Rs 426.85.
Long-term, BEL is expected to gain from technology transfer deals under the new pact.
BDL, which focuses on missiles and ammunition, saw a bigger fall of Rs 25.30 (1.28 percent), trading at Rs 1,949.90.
Analysts say BDL still stands to benefit as India boosts its indigenous weapons production.
Strong Future Ahead
Experts believe this India-US deal will help India become a global defence manufacturing hub, thanks to joint research, development, and production. It will also boost order books, improve technology levels, and modernise India’s armed forces.
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