Shares of HAL, BEML, and Paras Defense rallied after both countries agreed on a long-term cooperation framework to deepen arms trade, joint production, and strategic interoperability.
India and the United States are set to finalize a new 10-year defense cooperation framework, following a phone call between India’s Defence Minister Rajnath Singh and US Defense Secretary Pete Hegseth, where they have agreed to sign a decade-long strategic defense pact, boosting military-industrial collaboration and driving up shares of HAL, BEML, Paras Defence, among others.
The pact, to be formally signed later this year, is designed to deepen defense industrial collaboration, increase interoperability between the two militaries, and expedite US defense sales to India.
During the call, Singh pressed for faster delivery of GE F404 engines for the Tejas fighter jets and urged GE Aerospace to conclude agreements for F414 engine production in India under a joint venture with HAL.
Defense cooperation between the two nations has expanded in recent years, covering platforms like Javelin anti-tank missiles, Stryker armoured vehicles, P-8I maritime patrol aircraft, and critical interoperability agreements under the “Major Defense Partner” understanding.
Markets responded positively to the announcement. India’s Nifty Defense index rose about 0.65%, led by shares of HAL, BEML, and Paras Defence, all gaining 1–2%, while companies like Data Patterns, Dynamatic Technologies, and Mazagon Dock also saw solid gains.
Analysts attribute the rally to investor expectations of increased U.S. arms sales and industrial cooperation.
The planned 10-year framework builds on the foundation laid during the February 2025 Trump–Modi summit, where major deals were announced for military hardware, and follows previous agreements such as BECA and the Major Defense Partner pact.
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