India is close to finalising a deal worth around $1 billion with U.S. firm General Electric (GE) for 113 GE-404 engines to power the indigenous Light Combat Aircraft (LCA) Tejas Mark 1A.

The move follows the government’s recent approval of a ₹62,000-crore order for 97 additional Tejas fighters. Hindustan Aeronautics Limited (HAL) had earlier ordered 99 GE-404 engines for the first batch of 83 jets. With this new deal, HAL’s full requirement of 212 engines will be met, ensuring uninterrupted supplies and avoiding production delays.

Deliveries of the first 83 fighters are planned by 2029-30, with the next 97 expected by 2033-34. Meanwhile, HAL is negotiating another $1.5 billion agreement with GE for 200 advanced GE-414 engines, which will power the upcoming LCA Mark 2 and AMCA fighter jets. This larger deal is expected to include 80% transfer of technology.

The expanded LCA programme aims to replace the Indian Air Force’s ageing MiG-21 fleet while generating significant work for defence MSMEs. India is also collaborating with France’s Safran on an indigenous engine project to further strengthen self-reliance in defence manufacturing.