India–US F414 Engine Deal Nears March 2026 Signing, Unlocking Long-Delayed Tejas Mk2 Rollout

New Delhi: India is on the verge of finalising one of its most consequential aerospace defence agreements, with the long-pending technology transfer deal for the General Electric F414 fighter jet engine expected to be formally signed by March 2026, according to officials familiar with the negotiations.

Sources indicate that discussions for the USD 1.5 billion contract have now concluded, locking in an unprecedented 80 per cent Transfer of Technology (ToT) framework. Once approved by both governments—an inter-governmental process expected to be completed within the first quarter of 2026—the agreement will mark a decisive turning point for India’s combat aviation roadmap, particularly for the Tejas Mk2 programme.

The Engine That Holds the Key to Tejas Mk2

The absence of a signed F414 agreement has emerged as the single most critical reason behind the delayed public rollout of the Tejas Mk2, defence analysts say. While the aircraft’s design, structure, and systems integration have progressed steadily, the engine deal has remained a strategic bottleneck.

Multiple analysts and industry insiders confirm that the first Tejas Mk2 prototype is already structurally complete at Hindustan Aeronautics Limited (HAL) facilities. However, the government has deliberately refrained from authorising an official rollout ceremony due to the unresolved F414 negotiations.

According to these assessments, a formal rollout before finalising the engine agreement would have weakened India’s negotiating leverage. Once an aircraft is publicly rolled out, switching to alternative powerplants becomes technically complex and significantly more expensive, effectively placing the buyer “on the back foot” in commercial and strategic terms. New Delhi, therefore, chose to use the pending rollout as a bargaining lever to secure deeper technology access from the United States.

An 80% ToT: A Strategic Breakthrough

The proposed 80 per cent ToT represents a major departure from past engine deals, which were typically limited to assembly or maintenance rights. Open-source assessments suggest that the transfer will likely cover critical and previously restricted technologies, including single-crystal turbine blade machining, laser drilling for high-temperature combustors, and advanced thermal and corrosion-resistant coatings.

Once the agreement is cleared, HAL will begin phased absorption of manufacturing know-how, with the objective of establishing a fully domestic ecosystem for producing, servicing, and sustaining the F414 family of engines in India.

If the March 2026 timeline holds, HAL is targeting the rollout of the first “Made-in-India” F414 engine by mid-2029. The three-year window will be used to install specialised production lines, calibrate high-precision test rigs, and certify licensed manufacturing processes under international standards.

Impact Beyond Tejas Mk2

While the F414 is central to the Tejas Mk2, the implications extend far beyond a single aircraft. Indigenous production of the engine is expected to support the Advanced Medium Combat Aircraft (AMCA) Mk1 and potentially future uprated variants, significantly reducing India’s long-term dependence on imported propulsion systems.

This capability is viewed within the defence establishment as a stepping stone toward co-development, rather than mere licensed manufacturing, of next-generation fighter engines.

Prototype Strategy Keeps Programme on Track

To avoid stalling the Tejas Mk2 development cycle, initial prototypes will fly with imported F414 engines supplied by General Electric. These engines are already being maintained by HAL under OEM protocols and have undergone periodic ground trials to confirm operational readiness.

HAL currently plans to roll out the first Tejas Mk2 prototype in 2026, powered by one of these imported engines, soon after the engine agreement is formally inked. In total, four prototypes are scheduled to be built between 2026 and 2031, forming the backbone of an extensive flight-test campaign.

The trials will focus on validating the aircraft’s expanded aerodynamic envelope, digital flight control laws, mission system integration, and weapons release capabilities, ensuring the platform meets Indian Air Force operational requirements.

Limited Series Production to Accelerate Induction

To shorten the gap between development and operational deployment, HAL has proposed a Limited Series Production (LSP) phase for the Tejas Mk2. Subject to approval by the Indian Air Force, the plan envisages the manufacture of eight LSP aircraft between 2030 and 2032, ahead of final production clearance.

Defence planners say this approach will deliver immediate strategic dividends. It will enable early pilot conversion, provide real-world performance data across weapon and payload configurations, and allow indigenous radars, mission computers, and weapons to be integrated well before mass production. Collectively, this is expected to significantly de-risk full-scale production, targeted for 2032–33.

From Importer to Engine Co-Developer

By securing 80 per cent of core fighter-engine technology and synchronising it with an accelerated aircraft development roadmap, India is positioning itself for a structural shift in its aerospace posture. Officials see the F414 agreement not merely as a procurement contract, but as a strategic enabler—one that could finally unlock the long-delayed Tejas Mk2 rollout and propel India toward becoming a co-developer of high-performance fighter propulsion systems, rather than a perpetual importer.

With the engine deal now approaching the finish line, the long-awaited Tejas Mk2 is expected to move decisively from the hangar to the spotlight—ending years of strategic waiting driven not by airframes or avionics, but by the powerplant at its heart.