In a significant advancement for India’s indigenous fighter aircraft program, Hindustan Aeronautics Limited (HAL) and GE Aerospace have concluded a major agreement to supply 113 F404-GE-IN20 jet engines. Valued at $1 billion (approximately ₹8,870 crores), this deal is designed to enhance the Indian Air Force’s TEJAS Light Combat Aircraft (LCA) fleet and marks one of the largest engine procurement contracts in the history of India’s defense aviation sector.
Finalized on November 7, 2025, this agreement is set to play a crucial role in India’s ambition for self-reliance in defense manufacturing and the modernization of its air fleet. The contract supports the production of 97 TEJAS MK-1A fighters, part of a larger ₹62,370-crore order from the Ministry of Defence awarded to HAL in September 2025. This adds to the previous order of 83 aircraft valued at ₹48,000 crores signed in 2021, positioning the Indian Air Force (IAF) to induct a total of 180 indigenously produced TEJAS fighters over the next decade.
Deliveries of the F404 engines are scheduled to commence in 2027, continuing until 2032, which will provide a consistent supply chain for HAL’s assembly operations located in Bengaluru and Nashik. The agreement also includes a comprehensive support infrastructure that encompasses spares, maintenance, and training, aimed at optimizing the production process and maintaining operational efficiency.
This timely agreement comes as India navigates trade tensions with the United States, particularly the 50% tariff on Indian exports imposed during the previous U.S. administration. Despite these challenges, the deal underscores a mutual commitment from both countries to maintain strategic defense collaboration, insulating it from broader economic disputes. HAL officials highlighted that the agreement aims to enhance delivery precision and supply-chain resilience, addressing previous production bottlenecks that had hindered progress. This partnership is anticipated to stabilize the manufacturing rates of TEJAS and accelerate the integration of new aircraft into operational squadrons.
The TEJAS MK-1A, engineered with the GE F404-IN20 engine, serves as a versatile single-engine multi-role combat aircraft intended for a variety of tactical operations, including air defense and ground assault. It is equipped with a digital flight control system, AESA radar integration, and an electronic warfare suite, allowing compatibility with both domestic and international weapon systems.
With the IAF operating only 31 fighter squadrons—significantly fewer than the sanctioned strength of 42—the induction of the TEJAS MK-1A is vital for restoring combat readiness while phasing out older models such as the MiG-21 Bison.
In addition to its immediate operational advantages, the contract further solidifies the long-standing collaboration between HAL and GE, vital to India’s aerospace development. The two entities are also actively involved in the technology transfer and local production of advanced F414 engines for future fighter platforms, including the TEJAS MK-2 and the fifth-generation AMCA (Advanced Medium Combat Aircraft).
Defense analysts interpret this F404 order as a strategic continuity measure, ensuring a secure production environment while fostering industrial synergy for upcoming fighter initiatives.
Experts emphasize that the agreement sends a robust strategic message regarding the resilience of India-U.S. defense cooperation amidst shifting geopolitical landscapes. The decision to advance with this deal indicates New Delhi’s confidence in balancing its strategic autonomy with necessary global partnerships.
As the delivery timeline approaches, HAL is set to expand its production capacity, not only catering to domestic military needs but also preparing for potential exports of TEJAS variants as part of India’s ‘Atmanirbhar Bharat’ initiative. This $1 billion agreement signifies HAL’s pivotal role in India’s defense manufacturing ecosystem and showcases the nation’s rising prominence as an aerospace power on the global stage.
