Why India's $1 Billion Deal with General Electric for Tejas Engines Is a Boost to Indigenous Fighter Fleet

India has signed a $1 billion agreement with US-based General Electric (GE) for the supply of 113 F404 jet engines that will power the country’s indigenous Tejas Mark-1A light combat aircraft. The engines will be delivered to Hindustan Aeronautics Limited (HAL) between 2027 and 2032, marking a significant step in strengthening India’s self-reliance in aerospace manufacturing.

However, despite this landmark deal, delays in earlier deliveries remain a concern. The delivery of 99 GE F404 engines, ordered in August 2021, is still pending, with HAL having received only four engines so far.

HAL chief C.B. Ananthakrishnan said that the company currently has 11 Tejas aircraft ready, including four fitted with the newly received GE engines. “We are moving towards certification, and the aim is to deliver the first 10 jets to the IAF by the end of March next year,” he stated.

The GE-F404 engine is known for its reliability and performance, powering several frontline aircraft globally, including variants of the US Navy’s F/A-18 Hornet. For India, these engines will form the backbone of the Tejas fleet until the indigenous Kaveri engine still under development achieves operational readiness.

Currently, GE has committed to supplying 20 engines per year once production stabilises. HAL expects the fifth engine from the first batch to arrive later this month, enabling faster assembly and testing of aircraft for the Indian Air Force (IAF).

While the new engine deal is a boost, integration of weapon systems continues to slow down the Tejas Mark-1A production line. HAL is currently conducting trials for the Astra beyond-visual-range missile, ASRAAM short-range missile, and laser-guided bombs, all integrated with the Israeli Elta ELM-2052 radar and its advanced fire-control suite.

HAL has begun data analysis from the Astra and ASRAAM trials and is planning bombing tests during November and December. If engine supplies remain steady, officials say the target of delivering 10 aircraft by fiscal-end is achievable.

In September, the Indian Air Force placed an order for 97 additional Tejas Mark-1A fighters, valued at ₹66,500 crore, in what became the largest-ever domestic defence contract. This expansion follows the decommissioning of the Russian-origin MiG-21 fleet, which served for over six decades.

The IAF’s renewed focus on indigenous fighters gained urgency after Operation Sindoor. IAF assessments concluded that India would require more than its “authorised” 42.5 squadrons to maintain air dominance, reinforcing the push for Tejas production.

Beyond defence, HAL is also diversifying into the civil aviation sector. Last month, the PSU signed an MoU with Russia’s United Aircraft Corporation (UAC) to co-produce the SJ-100 regional jet in Moscow. The aircraft, already operational with 16 airlines worldwide, will support India’s UDAN regional connectivity scheme.

HAL estimates that India will need over 200 short-haul aircraft in the next decade, with another 350 jets required across the Indian Ocean region. “The SJ-100 will be a game-changer for regional air travel, and HAL will have full manufacturing rights under this partnership,” the company said.

The GE deal reinforces India’s growing defence partnership with the US while aligning with the government’s Atmanirbhar Bharat vision. Once fully operational, the new Tejas fleet powered by American engines and equipped with indigenous weapons will not only enhance India’s aerial strength but also mark a milestone in the nation’s journey toward aerospace independence.