“US tariffs, tech transfer, and a $1 billion engine deal—why this is a game-changer for India’s aerospace.”

Deal Overview India is on the verge of finalizing a $1 billion contract with General Electric for 113 additional GE-404 engines to power its indigenous Light Combat Aircraft (LCA) Tejas Mk1A jets. Background and Previous Contracts In August 2021, HAL signed an initial deal for 99 GE-404 engines to equip the first 83 Tejas Mk1A fighters. Deliveries began this year after supply-chain delays, with GE committed to supplying two engines per month to sustain production. Production Timeline Hindustan Aeronautics Limited aims to deliver the first 83 Mk1A jets by 2029–30, followed by 97 more aircraft by 2033–34, aligning engine shipments with fighter induction schedules. Technology Transfer and Future Platforms HAL is also negotiating a separate USD 1.5 billion pact with GE for 200 GE-414 engines—targeted at the LCA Mk2 and Advanced Medium Combat Aircraft (AMCA)—under an 80 percent technology-transfer arrangement. Strategic Implications This follow-on order ensures uninterrupted engine supply for Tejas production, bolsters India’s Make in India self-reliance push, and mitigates the impact of recently imposed US tariffs, which now stand at roughly 50 percent on Indian imports. Engine Order Comparison | Parameter | Initial Order (2021) | Additional Order (2025) | | Engines Ordered | 99 GE-404 | 113 GE-404 | | Deal Value | USD 716 million | USD 1 billion | | Jets Served | 83 Tejas Mk1A | 97 Tejas Mk1A | | Delivery Rate | 2 engines/month (ongoing) | 2 engines/month | | Technology Transfer | None | 80 % ToT for GE-414 deal |