India Close To Sign $1 Billion Deal For Tejas Jet Engine Amid Tariff Row With US: Report

India nears $1B deal with GE for 113 Tejas fighter jet engines, boosting HAL production and indigenous defence efforts, while partnering with France’s Safran for advanced jet engine development.

India Nears $1B GE Engine Deal For Tejas Fighters

Source : Twitter

India is on the verge of signing a $1 billion agreement with U.S. aerospace giant GE for 113 additional GE-404 engines to power the Light Combat Aircraft (LCA) Tejas. According to sources cited by ANI, negotiations are progressing rapidly, with the deal expected to be finalized by September.

Under the proposed arrangement, GE is set to supply two engines per month to meet its commitments for India’s Tejas programme. This marks the second major deal following a tariff-related dispute with the Trump administration—the first being a ₹62,000 crore contract to procure 97 LCA Mark 1A fighter jets.

Hindustan Aeronautics Limited (HAL), India’s state-owned aerospace company, has already secured 99 GE-404 engines for the initial 83 LCA Mark 1A jets ordered by the Indian Air Force. The upcoming deal would cover an additional 113 engines, ensuring HAL maintains a steady supply and avoids production delays.

This engine supply is critical as India ramps up production for its future fighter programmes. The Air Force will require 200 GE-414 engines for the LCA Mark 2 and the Advanced Medium Combat Aircraft. HAL plans to deliver the first 83 LCA Mark 1A jets by 2029-30, followed by a batch of 97 aircraft by 2033-34. Simultaneously, HAL is in talks with GE for a GE-414 engine deal that includes an 80% transfer of technology, strengthening India’s self-reliance in defence aviation.

The new engines will play a pivotal role in phasing out the ageing MiG-21 fleet and accelerating India’s transition toward indigenous fighter capabilities.

Partnership With France to Fuel Indigenous Engine Development

In a major boost to India’s fifth-generation fighter programme, Defence Minister Rajnath Singh announced on August 22, 2025, that India will collaborate with French aerospace major Safran to manufacture advanced jet engines domestically. Speaking at a Delhi event, Singh highlighted that this partnership is a crucial step in achieving self-reliance and reducing dependence on foreign suppliers.

“With engine manufacturing set to begin in India, we will fill a critical capability gap and accelerate the development of indigenous fighter aircraft,” Singh said. He emphasized that self-reliance goes beyond cutting imports—it’s about building a world-class ecosystem where Indian industry, both public and private, can meet domestic requirements and compete globally.

Tejas Orders Keep Growing

HAL has already secured orders totaling ₹66,000 crore for 97 Tejas fighter jets, in addition to an earlier ₹48,000 crore order for 83 aircraft. “Our Tejas aircraft exemplifies India’s indigenous defence capabilities. Challenges are part of the journey, but solutions will be found, ensuring we establish full fighter aircraft production capability in India,” Singh added.

#WATCH | Defence Minister Rajnath Singh says, "Just a few days ago, we placed a new order with HAL to manufacture 97 Tejas fighter planes at a cost of approximately 66,000 crore rupees. Prior to this, HAL had also been given an order to build 83 aircraft at a cost of 48,000 crore… pic.twitter.com/XGg5rbUzSh

— ANI (@ANI) August 22, 2025

The Defence Minister also extended a call to global defence firms to invest and co-produce in India, citing Airbus’s ongoing C295 transport aircraft collaboration with Tata Aerospace. “Make in India is not just for India. When you Make in India, you make for the world,” he noted.

A Strong Message on Defence and National Strength

Singh also addressed remarks from Pakistan’s Army Chief comparing India’s economy to a “sports car” and Pakistan’s to a “dump truck,” calling it more than a mere insult. “It reflects a clear truth: one country, through hard work, vision, and right policies, built a thriving economy, while the other remains mired in failure,” he said.

He underlined India’s commitment to national defence and honour, referencing Operation Sindoor as a demonstration of resolve. “We will ensure that along with India’s prosperity, our fighting spirit remains strong. No illusion about India’s strength will take root in Pakistan’s mind,” Singh asserted.