India Nears $1 Billion Deal with GE for 113 Fighter Jet Engines to Power Tejas Mk-1A

New Delhi, August 2025 – India is finalizing a major $1 billion agreement with U.S. aerospace giant General Electric (GE) for the supply of 113 F404-IN20 fighter jet engines, which will power the country’s indigenous Light Combat Aircraft (LCA) Tejas Mk-1A. The deal, in advanced negotiation between Hindustan Aeronautics Limited (HAL) and GE, is expected to be signed by next month.

Ensuring Continuity in Engine Supply

This order comes as a follow-on to the 2021 contract, under which HAL had already purchased 99 engines worth about $716 million. Deliveries of those engines began earlier this year after initial supply chain delays, and GE has committed to delivering about two engines per month until early 2026.

With this new order, HAL will receive a total of 212 GE-404 engines, enough to power all 180 Tejas Mk-1A fighters — 83 ordered earlier and 97 newly cleared by the Cabinet Committee on Security (CCS) earlier this month at a cost of nearly ₹62,000 crore.

Tejas Mk-1A: Upgraded Indigenous Fighter

The Tejas Mk-1A represents a significant leap over the earlier version. It is equipped with:

• AESA radar for superior target tracking,

• Modern electronic warfare systems,

• Mid-air refueling capability,

• Integration with advanced weapons such as the Astra Mk-1 air-to-air missile and the upcoming BrahMos-NG cruise missile.

Production is planned at 24 aircraft per year, making timely engine deliveries critical to meet deadlines. The first batch of 83 jets is expected to be inducted into the Indian Air Force by 2029–30, with the next 97 aircraft likely to follow by 2033–34.

Scaling Up Production

To support India’s needs, GE has assured it will increase annual production of the F404-IN20 engines to 24 units per year by 2027, avoiding bottlenecks and ensuring steady flow for HAL’s assembly lines.

Next Step: Co-Producing Advanced Engines

Alongside this agreement, India is negotiating a $1.5 billion deal with GE to co-produce the more powerful F414 engines in India, with an 80% technology transfer arrangement. These engines are intended for the Tejas Mk-2 fighter, currently in the prototype stage, and the Advanced Medium Combat Aircraft (AMCA), India’s fifth-generation stealth fighter program.

Strategic Significance

This engine procurement is not just about numbers — it comes at a time when the Indian Air Force’s fighter squadron strength is at its lowest since 1965. The deal ensures uninterrupted Tejas production, while the F414 co-production project represents a long-term leap towards self-reliance in aerospace technology under the government’s “Make in India” initiative.