The deal, concluded on 7 November 2025, marks a major step forward in bolstering India’s indigenous fighter production pipeline, even as New Delhi navigates a tense phase in trade relations with Washington following the Trump administration’s 50 percent tariff on Indian goods.
The agreement encompasses the procurement of engines and a comprehensive support package, ensuring a reliable propulsion ecosystem for HAL’s ambitious production targets.
The deliveries are scheduled to commence in 2027 and will extend through 2032, aligning with the timelines projected under the Indian Air Force’s (IAF) TEJAS MK-1A induction roadmap. The contract’s cumulative value is estimated at nearly ₹8,870 crore, underscoring the scale of HAL’s commitment to sustain and expand the TEJAS fleet.
The transaction follows the Defence Ministry’s recent ₹62,370‑crore order with HAL for 97 TEJAS MK-1A fighters, awarded in September 2025.
These aircraft represent the second production tranche after the earlier ₹48,000‑crore contract for 83 aircraft finalised in February 2021. Together, the two orders will eventually bring the total strength of IAF’s indigenous fighter fleet to 180 units.
The transaction follows the Defence Ministry’s recent ₹62,370‑crore order with HAL for 97 TEJAS MK-1A fighters, awarded in September 2025.
These aircraft represent the second production tranche after the earlier ₹48,000‑crore contract for 83 aircraft finalised in February 2021. Together, the two orders will eventually bring the total strength of IAF’s indigenous fighter fleet to 180 units.
The TEJAS MK-1A, powered by the GE‑built F404‑IN20 engine, is a single‑engine, multi‑role fighter optimised for air defence, maritime reconnaissance, and precision strike operations.
Its advanced avionics suite, electronic warfare capabilities, and compatibility with a wide range of air‑to‑air and air‑to‑surface weapon systems make it a critical component of India’s long‑term self‑reliance strategy in defence aviation.
Despite earlier production delays attributed to engine supply bottlenecks from GE Aerospace, the new deal is expected to stabilise the TEJAS manufacturing schedule.
HAL officials confirmed that the latest contract includes provisions for improved delivery oversight, logistical support, and maintenance training. The aim is to achieve a smooth pace of aircraft rollouts without dependency disruptions.
The IAF currently operates 31 fighter squadrons—well below its authorised strength of 42. The acceleration of the TEJAS MK-1A induction has therefore emerged as a top operational priority to maintain air superiority and fill the capability gap left by phasing out older fleets such as the MiG‑21 Bison.
Beyond immediate military implications, the HAL–GE partnership also carries industrial significance. The deal is aligned with India’s broader ‘Atmanirbhar Bharat’ (self‑reliant India) vision, as GE has previously agreed to transfer technology and manufacture advanced F414 engines within India for the upcoming TEJAS MK‑2 and AMCA projects.
The continuity of collaboration through the F404 supply contract ensures sustained technical coordination and local assembly opportunities within HAL’s engine division.
Industry observers view the transaction as both a strategic and pragmatic move. It guarantees propulsion security for India’s ongoing fighter fleet while preserving operational harmony with future platforms, including the twin‑engine Advanced Medium Combat Aircraft (AMCA).
