India Likely to Seal $1-Billion Defence Deal With US for 113 GE F-404 Engines

New Delhi: Amid escalating tariff tensions with Washington, India is set to sign a major defence deal with the US to procure 113 General Electric F-404 engines for its homegrown Tejas LCA fighter jets, according to defence officials quoted by ANI. The agreement, valued at around $1 billion, is expected to be finalised by September.

The deal follows last week’s approval by the Cabinet Committee on Security for the purchase of 97 additional Tejas Mk-1A aircraft from Hindustan Aeronautics Limited (HAL) at a cost of ₹62,000 crore, aimed at strengthening the Indian Air Force’s depleting squadron strength.

Boost to HAL Production

Officials said the engine supply will help HAL complete the delivery of 180 Tejas Mk-1A jets on schedule. Production has been delayed due to GE’s earlier supply bottlenecks, with HAL still awaiting engines to ramp up deliveries.

HAL has planned phased deliveries — the first batch of 83 jets by 2029–30, followed by the additional 97 by 2033–34 — provided GE can maintain its commitment of supplying two engines per month.

Parallel Negotiations for GE-414 Engines

HAL is also in talks with GE to acquire 200 more powerful F-414 engines to power the next-generation variants of Tejas and the indigenous fifth-generation Advanced Medium Combat Aircraft (AMCA).

Strategic Push

The indigenous fighter jet programme, strongly backed by the Defence Ministry and Air Headquarters, is expected to promote defence indigenisation and provide opportunities to Indian MSMEs.

The defence deal comes alongside India–US 2+2 discussions on defence and security cooperation, where both nations are working towards a new 10-year framework for their strategic defence partnership.

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