India, April 15 -- GE Aerospace and India's Hindustan Aeronautics Ltd. have agreed upon technical specifications to co-produce fighter-jet engines, moving one step closer to a deal that would shift high-end US military technology to India.

GE and HAL "reached an agreement on technical matters" for the production of F414 engines, according to a joint statement issued on Tuesday. The pact, under negotiation for three years, includes the transfer of manufacturing expertise to India and will be followed by a final contract.

The agreement marks a pivotal moment for Prime Minister Narendra Modi's "Make in India" initiative, which seeks to modernise the country's aging air force while reducing its decades-long reliance on Russian hardware. Ind...