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India Looks to Sign $1 Billion Fighter Jet Engine Deal With GE Next Month: Report

Written by: Team Angel OneUpdated on: 28 Aug 2025, 7:51 pm IST
India to finalise $1 billion deal with GE for 113 GE-404 engines, while HAL plans GE-414 procurement for LCA Mark 2 and AMCA projects.
India Looks to Sign $1 Billion Fighter Jet Engine Deal With GE Next Month: Report
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India is close to signing a $1 billion agreement with General Electric (GE) for 113 GE-404 engines to power the next batch of Light Combat Aircraft (LCA) Tejas Mark 1A, as per ANI reports. 

As per the ANI reports, this follows the government’s recent clearance of a ₹62,000 crore order for 97 more Tejas jets. These engines will add to the earlier order of 99 units, already secured by Hindustan Aeronautics Ltd (HAL) for the first 83 LCA Mark 1As. 

HAL’s Production Timelines and Engine Supply

As per news reports, in total, 212 GE-404 engines will be acquired to ensure smooth production and timely delivery of the indigenous fighter jets. HAL has set a target to hand over the first 83 aircraft by 2029-30, while the remaining 97 are expected by 2033-34. To meet this schedule, GE is preparing to supply 2 engines each month.

GE-414 Engines, Indigenisation, and Future Plans

Alongside the GE-404 deal, HAL is in advanced discussions with GE to procure 200 GE-414 engines for the upcoming LCA Mark 2 and India’s fifth-generation fighter jet, the Advanced Medium Combat Aircraft (AMCA). The proposed $1.5 billion agreement is expected to include an 80% transfer of technology. 

According to the ANI report, 162 engines will power the LCA Mark 2, while 10 are designated for 5 AMCA prototypes. This is part of a broader push to replace the ageing MiG-21 fleet. 

In parallel, India is also advancing a joint programme with French manufacturer Safran to design an indigenous fighter jet engine, as per news reports.

Read More: India and France to Join Hands on ₹61,000 Crore Fighter Engines Project!

Conclusion 

The upcoming GE engine deals, alongside collaboration with Safran, mark a significant step towards India’s defence self-reliance. With assured production timelines and major technology transfer, the indigenous fighter programme will boost both capability and industry growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Aug 28, 2025, 2:13 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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