India is on the verge of finalizing a significant $1 billion deal with US aerospace giant General Electric (GE) for the supply of 113 additional GE-404 engines. These engines will power India’s indigenous Light Combat Aircraft (LCA) Tejas fleet, marking a major step in the country’s push to strengthen its defense capabilities.

This impending agreement comes despite ongoing trade tensions between India and the US involving tariffs and other disputes. Defence officials have indicated that the negotiations are in advanced stages and the deal is expected to be signed by September 2025. The deal will complement a previous contract under which the Indian state-owned Hindustan Aeronautics Limited (HAL) had already secured 99 GE-404 engines for an initial batch of 83 LCA Mark 1A fighter jets ordered by the Indian Air Force. The new engines will serve the next procurement phase of 97 additional jets, extending the fleet’s operational capability and helping maintain a consistent supply chain.

Significantly, HAL is targeting to deliver the first 83 aircraft by 2029-2030, with the subsequent batch expected by 2033-2034, sustained by GE’s commitment to supply two engines per month. This steady flow is crucial for avoiding operational delays and ensuring readiness. Beyond the engines for the LCA Mark 1A, HAL and GE are also negotiating for GE-414 engines to power the upcoming LCA Mark 2 and Advanced Medium Combat Aircraft (AMCA), envisioning technology transfer of 80 percent to bolster domestic manufacturing under India’s “Atmanirbhar Bharat” initiative.

This contract not only reinforces New Delhi’s strategic partnership with American aerospace firms but also highlights India’s broader commitment to indigenization while still leveraging global technology to modernize its air force. As older fighters like the MiG-21 are phased out, the enhanced Tejas fleet equipped with these engines is poised to play a central role in India’s air defense architecture over the next decade.