New Delhi: In a significant move amid escalating trade tensions with the United States, India’s Hindustan Aeronautics Limited (HAL) has inked a $1 billion defence deal with American firm General Electric (GE) for jet engines to power indigenous Tejas Light Combat Aircraft (LCA) Mk-1A fighter jets.
The agreement, signed on Friday, covers the supply of F404-GE-IN20 engines and a comprehensive support package for 97 LCA Mk-1A aircraft. Deliveries are slated to commence in 2027 and conclude in 2032, ensuring timely bolstering of the Indian Air Force’s fleet.
This comes against the backdrop of US President Donald Trump’s 50% tariff on Indian products, which strained bilateral relations.
The Tejas, a single-engine multi-role fighter designed for high-risk aerial operations including air defence, maritime reconnaissance, and strikes, has faced production hurdles due to previous delays in engine supplies from GE. The Defence Ministry had earlier contracted HAL in September 2025 for ₹62,370 crore to procure these 97 jets. This was following a 2021 deal for 83 Mk-1A aircraft worth ₹48,000 crore that also encountered setbacks.
With the Indian Air Force operating only 31 squadrons against a required 42, this deal is crucial to address the depleting fighter fleet. It will fulfil HAL’s need for 212 GE-404 engines, minimising future delays.
In a parallel development, HAL has partnered with Russia’s United Aircraft Corporation to manufacture the SJ-100 civil aircraft in India, enhancing regional connectivity under the UDAN scheme. Over 200 SJ-100s are in service globally.
This defence pact underscores India’s push for aerospace self-reliance while navigating international partnerships.