India is set to sign a major deal with U.S. company General Electric (GE) for new fighter jet engines that will power the Tejas Mk-1A aircraft.
This step will help Hindustan Aeronautics Limited (HAL) speed up production of Tejas jets for the Indian Air Force, which urgently needs more fighter aircraft.
Tejas Mk-1A Boost: India Nears $1B GE Deal for 113 Jet Engines
India is close to finalising a $1 billion deal with U.S. aerospace company General Electric (GE) for 113 F404-IN20 fighter jet engines.
These engines will power the indigenous Light Combat Aircraft (LCA) TEJAS MK-1A.
Currently, Hindustan Aeronautics Limited (HAL) is already producing TEJAS jets, and this new deal will ensure a steady supply of engines for them.
Earlier, HAL had signed a contract with GE in 2021 for 99 engines, which are being delivered now. With the new order, HAL will have a total of 212 GE-404 engines available.
This step is crucial because the Indian Air Force (IAF) has already ordered 83 TEJAS MK-1A fighters, and in August 2025, the government approved another 97 aircraft at a cost of ₹66,000 crore.
That brings the total order to 180 Tejas Mk-1A jets. With a planned production rate of 24 aircraft per year, timely engine supply is critical to avoid delays.
The Tejas Mk-1A is an upgraded version of the original TEJAS. It comes with:
Advanced radar systems
Modern electronic warfare systems
Mid-air refuelling capability
These features make it much more powerful and suitable for frontline operations. The urgency is high because the IAF’s fighter squadron strength is at its lowest since 1965, so faster induction is a priority.
Meanwhile, India is also working on a bigger agreement worth $1.5 billion with GE to co-produce the more powerful F414 engines in India.
This project will have about 80% technology transfer and will be used for the upcoming Tejas Mk-2.
The Tejas Mk-2, currently in the prototype stage, is expected to start serial production by 2027. It will have greater endurance and payload capacity compared to the Mk-1A.
At the same time, India is also working on the Advanced Multi-Role Combat Aircraft (AMCA) program, which will be another big leap in indigenous fighter jet development with the help of Indian industry partners.
