Amid Tariff Row, India Likely to Sign $1 Billion Fighter Jet Engine Deal with US Firm GE: Report

Amid Tariff Row, India Likely to Sign $1 Billion Fighter Jet Engine Deal with US Firm GE: Report

India is close to finalising a deal with General Electric for 113 fighter jet engines for LCA Tejas. The agreement may be signed by September, according to reports.

India is reportedly preparing to sign a $1 billion agreement with US aerospace firm General Electric (GE). The deal is for 113 fighter jet engines to power the Indian Air Force’s Light Combat Aircraft (LCA) Tejas.

According to ANI, sources said the negotiations are in the final stage. The deal is expected to be signed by September 2025.

Key Details of the Proposed Deal

  • Deal Value: $1 billion (approx. ₹8,300 crore)
  • Supplier: GE Aerospace (United States)
  • Engines: 113 GE-404 engines for LCA Tejas
  • Delivery Timeline: Two engines per month
  • Recipient: Hindustan Aeronautics Limited (HAL)

Second Major Defence Agreement Amid Tariff Tensions

This would be India’s second major defence deal with the US since trade tensions began under the Donald Trump administration.

The first was a ₹62,000 crore deal to buy 97 additional LCA Mark 1A aircraft, signed earlier this year.

Ensuring Continuity in Engine Supply

Previously, HAL had signed a deal for 99 GE-404 engines for 83 Tejas Mark 1A fighter jets.

The new deal for 113 engines will:

  • Help HAL reach its target of 212 engines
  • Ensure uninterrupted production and delivery
  • Avoid delays in the LCA programme

Delivery Timelines

  • First batch of 83 jets: To be delivered by 2029–30
  • Next batch of 97 jets: Expected by 2033–34

Future Plans: GE-414 Engines and Indigenous Project

India is also negotiating with GE for 200 GE-414 engines for:

  • LCA Mark 2
  • Advanced Medium Combat Aircraft (AMCA)

This deal may include 80% technology transfer to boost local production.

In parallel, India is working with French firm Safran to develop a fully indigenous fighter jet engine under the ‘Make in India’ initiative.

Replacing MiG-21s

The MiG-21 fleet, once the backbone of India’s air defence, is being phased out. The LCA Tejas, powered by GE engines, will take its place.

This move aligns with India’s goal to become self-reliant in defence manufacturing.

India is set to strengthen its defence capability with a major engine deal with GE. The agreement will not only support the LCA Tejas programme but also push India’s ambition to achieve indigenous defence production.

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