The deal will see BAE provide Hindustan Aeronautics Limited (HAL) with a package including ground support equipment, spares, support and training for the Hawk Mk132 advanced jet trainer. The agreement was signed at the Aero India 2015 convention.
BAE employs around 900 people at its site in Brough, East Yorkshire, in roles including engineering and manufacturing.
A BAE spokesman said: “The Brough site is where our Hawk aircraft are ‘born’, and this is where the initial sub-assemblies of the aircraft are built.
“The workforce is manufacturing parts for the latest version of Hawk, which is destined to train the pilots of the future in the Royal Saudi Air Force and Royal Air Force Oman.
“These sub-assemblies become part of the Hawk across the Pennines at our facilities at Warton and Samlesbury, in Lancashire, where the aircraft are assembled and flight tested.”
The spokesman said that there were strong links between India and Brough, with a large number of BAE’s hawk experts already working with partners such as HAL.