Mega defence deal: India inks $1 billion pact with US firm GE for 113 fighter jet engines; delivery from 2027

NEW DELHI: Indian state-owned firm Hindustan Aeronautics Limited (HAL) on Friday announced a $1 billion deal with US-based General Electric (GE) to supply 113 jet engines and a support package for India’s 97 LCA Mk1A fighter aircraft program.Sharing a post on X, HAL said, "The Hindustan Aeronautics Limited (HAL) has entered into an agreement with General Electric Company, USA, on 7th November 2025 for the supply of 113 Nos of F404-GE-IN20 engines and support package for execution of 97 LCA Mk1A programme."The company added that engine deliveries will take place between 2027 and 2032. The contract for the 97 LCA Mk1A aircraft was earlier signed in September 2025."The engine deliveries would be from 2027 to 2032. The contract for 97 LCA Mk 1A was signed in September 2025," HCL added.

The deal is expected to help HAL to get its complete requirement of 212 GE-404 engines in continuity, avoiding any types of delays in engine supplies.

HAL, Russia’s UAC ink pact

Earlier this week, HAL also signed a Memorandum of Understanding (MoU) with Russia’s Public Joint Stock Company United Aircraft Corporation (PJSC-UAC) to produce the SJ-100 civil commuter aircraft in India.

The agreement was signed in Moscow on October 27, 2025, HAL said in a statement shared on X."HAL and Public Joint Stock Company United Aircraft Corporation (PJSC-UAC) Russia signed an MoU for production of civil commuter aircraft SJ-100 in Moscow, Russia on October 27, 2025,” the company stated.The SJ-100 is a twin-engine, narrow-body aircraft already in commercial service, with over 200 units operating across 16 airlines worldwide. Under the new arrangement, HAL will acquire the rights to manufacture the SJ-100 for India’s domestic customers, a move expected to enhance short-haul connectivity under the government’s UDAN scheme.This marks the first time in decades that a complete passenger aircraft will be produced in India, following the AVRO HS-748 project that ran from 1961 to 1988.According to HAL, the collaboration with Russia’s United Aircraft Corporation (UAC) reflects the strong trust built over years of aerospace partnership. "The manufacturing of the SJ-100 aircraft marks the beginning of a new chapter in the history of the Indian aviation industry. It's a step towards fulfilling the dream of 'Aatmanirbhar Bharat' in the civil aviation sector," the company said in a statement.Industry experts estimate India will need over 200 jets of this type over the next decade to improve regional connectivity, along with around 350 more aircraft to serve the Indian Ocean region and nearby international tourist routes.HAL said the project would strengthen India’s aviation ecosystem by boosting local manufacturing, creating opportunities for private participation, and generating employment across the value chain.