HAL seals deal with American defence company for Tejas amid India-US trade deal negotiations
The deal takes place as US President Donald Trump has imposed a 50 per cent tariff on India. There are trade deal negotiations going on between the two countries as bilateral relations hit a rocky road. As per the deal, HAL would receive the F404-GE-IN20 engines for the indigenous jets.
New Delhi: In good news for India's defence sector, Hindustan Aeronautics Ltd (HAL) on Friday reportedly announced it has an agreement with General Electric (GE), an American defence company, to procure 113 jet engines for its programme on Tejas light combat aircraft.
A deal amid Trump's tariffs
The deal takes place as US President Donald Trump has imposed a 50 per cent tariff on India. There are trade deal negotiations going on between two countries as bilateral relations hit a rocky road. As per the deal, HAL would receive the F404-GE-IN20 engines for the indigenous jets. According to a HAL spokesperson on X, the delivery will take place from 2027 to 2032.
An agreement of Rs 8,870 crore
News agency PTI has reported that the deal is worth around $1 billion or roughly Rs 8,870 crore. The report states that "HAL has entered into an agreement with M/s. 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."
In September, the Defence Ministry finalised a deal with HAL worth Rs 62,370 crore to procure 97 Tejas MK-1A light combat aircraft for the Indian Air Force. Tejas is a single-engine multi-role fighter aircraft that can destroy the enemy in high-threat air environments.
Also, the IAF is reportedly set to acquire six mid-air refuelling aircraft for Rs 8,000 crore. According to reports, the contract might be awarded to Israel Aircraft Industries (IAI), an Israeli government-owned firm, which has emerged as the sole bidder meeting all the stringent requirements.