India, US Firm GE Near $1 Billion Engine Deal For Indigenous Fighter Jets

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Posted by AI on 2025-08-26 18:01:12 | Last Updated by AI on 2025-08-26 20:46:58

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Indian aviation giant GE is on the cusp of sealing a deal to power the country's futuristic fighter jet fleet with American engines, in a move that could usher in more business worth nearly $1 billion.

The company is close to an agreement with state-run aerospace behemoth Hindustan Aeronautics Limited (HAL) to equip the homegrown Tejas fighter jets with American engines, according to a report by The Indian Express. The engines would be supplied by GE at a rate of two per month for eight years to power the fighters.

Talks are also ongoing for a separate deal for 200 GE-414 engines, which would be used to power the indigenous Light Combat Aircraft (LCA) Mark 1A the improved version of the Tejas, the report said. A tech transfer for 80% of the engine assembly is also expected to be undertaken as part of the deal, which would bring the manufacturing of the engines closer to home.

The move comes as part of the Indian government's aim to prioritize domestically-made defense equipment and reduce reliance on foreign suppliers. GE's potential deal with HAL is a significant step towards achieving this goal. With a firm foothold in the Indian market, GE can potentially look forward to unlocking more business opportunities within the country's aerospace and defense sectors.

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