US Secretary of Defense Ashton Carter and his Indian counterpart Manohar Parrikar agreed in New Delhi to co-develop and co-produce military hardware, possibly including aircraft carriers and jet engines, the US Department of Defense said in a press release.

“[Carter and Parrikar] agreed to pursue co-development and co-production projects that will offer tangible opportunities for American defense industries to build defense partnership with the Indian industries including in manufacturing under ‘Make in India’,” the statement said on Wednesday.

The two defense chiefs also agreed to further discussion on coopering on jet engines and aircraft carrier design and construction.

India, which is pushing to develop an indigenous defense industry with foreign investment and expertise, is expanding bi-lateral defense ties with the United States.

India said it plans to spend $40 billion on defense in the 2015-16 fiscal year and could become the world’s fourth largest defense spender by 2020, according to IHS Jane’s Defense.

Carter is on a two-day official visit to India, where he also met External Affairs Minister Sushma Swaraj and the National Security Adviser Ajit Doval.