India and the United States are on track to finalize a significant deal valued at USD 1 billion for the procurement of GE-404 engines for India's Light Combat Aircraft (LCA) Tejas. Hindustan Aeronautics Limited (HAL) will receive the engines, with deliveries expected to commence in 2027-28. The agreement is anticipated to be concluded by October.

This deal underscores India's commitment to defense indigenization and reducing reliance on foreign suppliers. According to HAL Chairman DK Sunil, the discussions with GE have not been affected by tariff-related issues. The LCA Mk2 is designed around the GE414 engine, which strengthens the defense ties between India and the US, fostering collaborations in aerospace and technology transfer. The deal is also projected to enhance HAL's manufacturing capabilities, contributing to India's aspiration of becoming a developed nation by 2047.

The agreement involves General Electric ramping up the supply of GE-404 engines for LCA Mk1A jets, with an expected delivery of 12 engines by the end of March and 20 in the following year. This deal will help HAL meet its complete requirement of 212 GE-404 engines, ensuring that there are no delays in engine supplies. HAL is expected to supply 82 LCA Tejas Mark 1A aircraft by the end of 2029-30, followed by the next batch of 97 aircraft by 2033-34.

The US firm is expected to supply two engines per month to fulfill its commitment to the Indian program. HAL and GE have already signed a deal for 99 GE-404 engines and 83 LCA Mark 1A fighter jets. The 113 jet engines in the new deal will be in addition to that. The deal is intended to assist the Indian Air Force (IAF) in replacing its MiG-21 fleet.

The initial agreement with GE Aerospace to co-produce fighter jet engines for the Indian Air Force (IAF) was viewed as a crucial element in strengthening defense cooperation between the two countries. This original agreement encompassed the potential joint production of GE Aerospace's F414 engines in India for the Light Combat Aircraft Mk2 program.

The procurement of these engines is essential for India's air power upgrade, particularly for the Tejas Mk-2, a more powerful variant of the current LCA fleet, which is designed to be powered by the GE F-414 engine. Securing engine supplies, along with GE Aerospace's commitment to deliver more than 20 engines from 2027 onwards, will ensure the faster delivery of the fighters.

Despite the progress with the US, India is also considering other options to ensure its defense preparedness. There have been reports that the government may turn to French fighter jet engines for its defense needs and is in talks with Paris-based Safran SA.

The India-US defense partnership is also being reinforced through a new 10-year framework, with both countries committed to promoting a safer Indo-Pacific region through the QUAD. This includes advancing defense industrial, science, and technology cooperation; operational coordination; regional cooperation; and information-sharing.