Amid the backdrop of an additional 25% tariff imposed by U.S. President Donald Trump, which will take effect at 9:30 AM IST, a massive defense deal between India and the USA is in its final stages despite these trade challenges.
As part of this new arrangement, India will acquire 113 engines for 97 LCA Mark 1A Tejas fighter jets from the USA, valued at over a billion USD (87 billion INR). This deal supplements a prior order for 99 GE-404 engines for 83 Mark 1A jets.
According to defense sources, negotiations for this engine procurement deal with the USA are complete and could be finalized by September this year.
Even as trade tensions with the USA rise due to tariffs, India is committed to securing a steady supply of engines for Hindustan Aeronautics Limited (HAL).
HAL is developing indigenous Light Combat Aircraft for the Indian Air Force, and consistent engine supply is crucial for ongoing production.
Upon agreement, deliveries for the first batch of 83 aircraft engines are anticipated by 2029-30, with subsequent deliveries for 97 jets set for 2033-34. General Electric (GE) will supply India with two engines each month.
Additionally, HAL is in separate negotiations with GE for GE-414 engines featuring 80% technology transfer. This agreement, valued at about 1.5 billion USD, aims to provide 200 engines for LCA Mark 2 and AMCA programs.
