India and the United States are close to finalising a landmark defence agreement worth over USD 1 billion for the supply of 113 GE-404 engines to power 97 LCA Mark 1A Tejas fighter jets, defence sources confirmed.
The deal, likely to be signed by September 2025, comes against the backdrop of strained India-US trade relations following Donald Trump’s imposition of 50% tariffs on New Delhi over its ties with Russia.
This new order will be in addition to the 99 GE-404 engines already contracted for the first batch of 83 Tejas jets, ensuring a steady supply line for Hindustan Aeronautics Limited (HAL) and timely delivery to the armed forces.
Engine Supply Timeline
- HAL is expected to receive two engines per month from GE to meet production schedules.
- The first 83 Tejas Mk-1A jets will be delivered by 2029-30, while the additional 97 aircraft are expected by 2033-34.
Bigger Defence Push
In parallel, HAL is also negotiating a USD 1.5 billion deal with GE for 200 GE-414 engines, with 80% transfer of technology. These will power the future LCA Mark 2 and Advanced Medium Combat Aircraft (AMCA), marking a critical step towards India’s defence self-reliance.
The GE-414 engines are earmarked for 162 LCA Mk-2 fighters and 10 AMCA prototypes, forming part of the Indian Air Force’s fleet modernisation plan to replace ageing MiG-21s.
Indigenous Push
Alongside US deals, India is also pursuing a joint fighter engine project with French firm Safran, further boosting its indigenous defence ecosystem under the Atmanirbhar Bharat initiative.
Defence officials emphasised that the upcoming agreement with GE is not only vital for India’s Tejas program but also a symbol of deepening strategic defence cooperation between New Delhi and Washington, despite ongoing tariff-related tensions.
