Indian Prime Minister Narendra Modi could set the seal on key defense orders for General Dynamics (GD) and General Electric (GE) this week as he heads to Washington for a two-day U.S. visit.
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Modi, keen to avert a trade war with the U.S., joins President Donald Trump on Wednesday after heading to France, and defense deals are likely to form part of discussions on trade, security and energy.
Trump Wants More Defense Deals
Trump urged Modi last month to buy more U.S. defense equipment and move “toward a fair trading relationship.” India, which is the world’s largest importer of arms, has traditionally relied on Russia for defense equipment.
It’s understood that key contracts relating to GD’s Stryker combat vehicles and GE’s aerospace business will be discussed, according to Reuters.
India and the U.S. have been in protracted talks over joint production of the Stryker vehicles, with India expected to become the first foreign country to produce the vehicles, while executives from the state-owned Hindustan Aeronautics Ltd (HAL) are due to finalize a deal over co-production of General Electric’s F414 jet engines.
The Stryker, a family of eight-wheeled armored fighting vehicles, was demonstrated to the Indian Army last year and officials quickly worked out a plan to purchase several hundred from manufacturer GD.
Meanwhile the GE deal was first struck in 2023, with officials hoping it to be finalized by March. GE Aerospace’s F414 engines are be co-produced in India to power the Tejas Light Combat Aircraft Mk2.
“I look forward to meeting my friend, President Trump,” Modi said in a statement on Monday. “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.”
Is GD a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy consensus rating on GD, based on eight Buys, nine Holds and one Sell. The average GD price target of $299.00 implies 17% upside from current levels after the stock rose 30% in the last three years.
