India and US Approaching $1 Billion Defense Agreement for GE-404 Engines Amid Trade Strains
India and the United States are nearing the completion of a significant defence agreement valued at over USD 1 billion. This deal involves the provision of 113 GE-404 engines, which will be used to power 97 LCA Mark 1A Tejas fighter jets, according to defence sources.
Negotiations for the deal, expected to be concluded by September 2025, take place amidst ongoing tensions in India-US trade relations. This friction stems from former US President Donald Trump's decision to implement 50% tariffs on India due to its ties with Russia.
This new order of engines will supplement the existing contract for 99 GE-404 engines for the first batch of 83 Tejas jets. The agreement is aimed at maintaining a reliable supply chain for Hindustan Aeronautics Limited (HAL) to ensure timely delivery to the armed forces.
HAL is anticipated to receive two engines monthly from GE to adhere to production timelines. The first batch of 83 Tejas Mk-1A jets is scheduled for delivery by 2029-30, with the additional 97 aircraft expected by 2033-34.
Simultaneously, HAL is negotiating another substantial deal with GE, estimated at USD 1.5 billion, for 200 GE-414 engines. This arrangement includes an 80% transfer of technology, crucial for powering the future LCA Mark 2 and Advanced Medium Combat Aircraft (AMCA). This marks a significant move towards India's goal of defence self-reliance.
The GE-414 engines are designated for 162 LCA Mk-2 fighters and 10 AMCA prototypes, forming a central part of the Indian Air Force’s modernization efforts aimed at replacing the aging MiG-21 fleet.
Besides engagements with the US, India is also working on a joint fighter engine project with the French company Safran. This endeavor aligns with the Atmanirbhar Bharat initiative, aimed at strengthening India's domestic defence capabilities.
Defence officials highlight that the forthcoming agreement with GE is critical for India's Tejas program and signifies the deepening of strategic defence cooperation between New Delhi and Washington, despite prevailing tariff-related tensions.
