India, GE close to $1-bn deal for fighter jet engines
New Delhi, August 26. India is set to conclude a nearly $1 billion agreement with US aerospace major General Electric (GE) for the supply of 113 GE-404 engines to power its indigenous Light Combat Aircraft (LCA) programme, defence sources were cited by multiple media sources as saying. The deal is expected to be signed by September, shortly after the government cleared a Rs. 62,000 crore procurement of 97 additional LCA Mark 1A fighters for the Indian Air Force.
The upcoming order builds on an earlier contract under which Hindustan Aeronautics Limited (HAL) purchased 99 GE-404 engines to equip the first batch of 83 LCA Mk1A jets. With the additional 113 engines, the total requirement rises to 212, ensuring smooth continuity in production and avoiding assembly-line delays. HAL has committed to deliver the first 83 aircraft by 2029-30, followed by the newly approved 97 jets by 2033-34.
To meet delivery timelines, GE has agreed to supply around two engines per month. Meanwhile, HAL is also negotiating a larger $1.5 billion-deal with GE for the more powerful GE-414 engines, which will include an 80 percent transfer of technology (ToT). Defence officials said talks on this agreement are in advanced stages and could be concluded soon.
India will require about 200 GE-414 engines – 162 for the next-generation LCA Mk2 and 10 for five prototypes of the Advanced Medium Combat Aircraft (AMCA). The new engine contracts are seen as crucial for replacing the Indian Air Force’s ageing MiG-21 fleet, which is being phased out in the coming weeks.
The indigenous fighter programme, fully backed by the Defence Ministry and Air Headquarters, is expected to significantly boost indigenisation and create opportunities for small and medium enterprises across India’s defence ecosystem.
At the same time, India is pursuing an ambitious joint project with French aerospace firm Safran to develop an indigenous fighter jet engine, underscoring its twin strategy of strengthening domestic capability while leveraging global technology partnerships.
