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India, US set to seal $1 billion Tejas jet engine deal amid tariff tensions

  • August 27, 2025

A week ago, the Cabinet Committee on Security approved the purchase of 97 additional Tejas LCA Mk-1A from HAL at a cost of Rs 62,000 crore to boost the Indian Air Force’s depleting squadron strength.

Indian Air Force (IAF) LCA Tejas performs an aerobatic display during the Aero India 2023 air show at Yelahanka air base in Bengaluru, India, February 13, 2023.

New Delhi: Amid ongoing tariff tensions, India is likely to sign a mega defence deal with the US to buy 113 additional F-404 engines from General Electric for 97 Tejas LCA jets, which the Hindustan Aeronautics Limited will manufacture.

The deal worth around $1 billion is likely to be inked by September, according to an ANI report that quoted unnamed defence officials.

A week ago, the Cabinet Committee on Security approved the purchase of 97 additional Tejas LCA Mk-1A from HAL at a cost of Rs 62,000 crore to boost the Indian Air Force’s depleting squadron strength.

Indian officials said the new deal would help HAL complete the delivery of 180 Tejas LCA Mk-1A in time.

Due to a long delay in GE’s supply of F-404, the Bengaluru-based aviation major is yet to supply the homegrown fighter jets to the Indian Air Force.

HAL plans to meet its production targets, with the first batch of 83 aircraft slated for delivery by 2029-30, and the subsequent 97 by 2033-34, provided GE fulfils its promise of supplying two engines per month.

Source: https://www.deccanherald.com/india/india-us-set-to-seal-1-billion-tejas-jet-engine-deal-amid-tariff-tensions-3698747

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