An agreement worth over Rs 8,870 crore signed between India’s HAL and U.S. company GE

New Delhi – The Hindustan Aeronautics Ltd (HAL) on Friday sealed a major deal with American defence major GE Aerospace to procure 113 jet engines for its Tejas light combat aircraft programme. The firming up of the deal came notwithstanding a downturn in India-US relations after the Trump administration slapped a 50% tariff on Indian goods. Under the deal, the delivery of the F404-GE-IN20 engines will begin from 2027 and the supplies will have to be completed by 2032, officials said. The size of the deal is learnt to be close to USD 1 billion (approximately Rs 8,870 crore) The HAL said it has entered into an agreement with General Electric Company to acquire the engines and support package for execution of 97 Light Combat Aircraft Mk1A programme.
Hindustan Aeronautics Limited (HAL) has entered into an agreement with M/s. General Electric Company, USA, on 7th November 2025 for the supply of 113 Nos of F404-GE-IN20 engines and support package for execution of 97 LCA Mk1A programme. pic.twitter.com/zB4BVGP0LK
— HAL (@HALHQBLR) November 7, 2025
The defence ministry in September sealed a Rs 62,370 crore deal with the HAL to procure 97 Tejas MK-1A light combat aircraft for the Indian Air Force. Tejas is a single-engine multi-role fighter aircraft capable of operating in high-threat air environments. It has been designed to undertake the air defence, maritime reconnaissance and strike roles. The HAL is also using GE F404-IN20 engines to power another lot of LCA MK1A jets. In February 2021, the defence ministry sealed a Rs 48,000 crore deal with HAL for the procurement of 83 Tejas Mk-1A jets for the IAF.
Delivery of aircraft to the Indian Air Force by HAL still pending
🚨 Big Boost for 🇮🇳 Defence!
The U.S. will supply 113 GE engines for India’s Tejas Mk-1A fighter jets ✈️
A landmark deal worth ₹8,870 crore signed between HAL and General Electric, strengthening India–U.S. defence partnership and boosting indigenous air power 💪🇮🇳… pic.twitter.com/2nLWzqmQQc
— Sanatan Prabhat (@SanatanPrabhat) November 8, 2025
The delivery of the jets are facing delays primarily due to GE Aerospace missing several deadlines for supply of its aero engines to power the jets. The IAF is looking at inducting the warplanes as the number of its fighter squadrons have gone down to 31 from officially sanctioned strength of 42.
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