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India Expected to Sign $1 Billion Fighter Jet Engine Deal with GE by September

India Set to Finalize $1 Billion Fighter Jet Engine Deal with General Electric by September
Agreement Details and Production Timeline
India is nearing the conclusion of a $1 billion contract with American aerospace giant General Electric (GE) to procure 113 additional GE-404 engines for its indigenous Light Combat Aircraft (LCA) Mark 1A fleet, according to senior defence officials. This agreement is anticipated to be finalized by September, following the government’s recent approval of a ₹62,000 crore procurement for 97 more LCA Mark 1A fighter jets.
Hindustan Aeronautics Limited (HAL), the state-owned aerospace manufacturer, had previously secured a contract for 99 GE-404 engines to power the initial batch of 83 LCA Mark 1A aircraft ordered by the Indian Air Force (IAF). The forthcoming order for 113 engines will bring HAL’s total requirement to 212 engines, facilitating streamlined production and reducing potential supply delays.
Under the current schedule, HAL aims to deliver the first 83 aircraft by 2029-30, with the subsequent 97 jets expected by 2033-34. GE plans to increase its engine deliveries to two units per month to meet its commitments to the Indian program.
Strategic Context and Industry Competition
This impending deal emerges amid intensifying competition within the global aerospace sector. French manufacturer Safran has already been selected to collaborate with India on the engine for the Advanced Medium Combat Aircraft (AMCA), underscoring the competitive environment for future contracts. As India accelerates its defence modernization efforts, other engine manufacturers are expected to enhance their offerings to secure a share of the country’s expanding procurement market.
Market analysts observe that while institutional confidence in GE remains robust, the company faces heightened scrutiny regarding its ability to deliver on schedule, particularly given potential labour-related risks. The scale and strategic significance of the deal highlight the critical importance of reliable supply chains and effective project management.
Parallel Negotiations and Indigenous Development
In parallel, HAL is engaged in negotiations with GE for a separate $1.5 billion agreement involving the supply of GE-414 engines, which would include an 80 percent transfer of technology. This contract is expected to cover 200 engines for the LCA Mark 2 and AMCA programs, with 162 engines allocated for the LCA Mark 2 and 10 for AMCA prototypes. These negotiations have been ongoing and are anticipated to conclude in the coming months.
The LCA program remains central to India’s efforts to replace its aging MiG-21 fleet, which is being phased out imminently. Fully supported by the Defence Ministry and Air Headquarters, the initiative represents a significant advancement for indigenization under the government’s Aatmanirbhar Bharat (self-reliant India) campaign. The project is also expected to generate substantial business opportunities for small and medium enterprises within the domestic defence sector.
India continues to pursue self-reliance in defence manufacturing, including the development of indigenous fighter jet engines in partnership with global firms such as Safran. By acquiring advanced technologies and fostering local capabilities, India aims to strengthen its position as a major player in the global aerospace industry.

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