India signs USD 1 billion deal with US firm GE for fighter jet engines

New Delhi [India], November 7 : Hindustan Aeronautics Limited (HAL) on Friday announced that it has signed a deal worth around USD one billion with US firm General Electric, for the supply of 113 F404-GE-IN20 engines along with a support package to execute the 97 LCA Mk1A aircraft program.
Posting 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 engines are expected to be delivered from 2027 and are anticipated to be completed by 2032.
"The engine deliveries would be from 2027 to 2032. The contract for 97 LCA Mk 1A was signed in September 2025," HCL posted.
Earlier in the week, Hindustan Aeronautics Limited (HAL) and Russia's Public Joint Stock Company United Aircraft Corporation (PJSC-UAC) signed a Memorandum of Understanding (MoU) to produce, for the first time, a passenger aircraft, the SJ-100, in India.
The agreement was inked in Moscow on Monday, according to a press release by Hindustan Aeronautics Limited (HAL). HAL shared details of the signing on X, stating, "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 SJ-100 is a twin-engine, narrow-body aircraft currently in operation with more than 16 commercial airline operators.
Over 200 such aircraft have already been produced. Under the new arrangement, HAL will have the rights to manufacture the SJ-100 for India's domestic customers, a move seen as crucial for enhancing short-haul connectivity under the government's UDAN scheme.
This collaboration represents the first time a "complete passenger" aircraft will be produced in India since the AVRO HS-748 project, which began in 1961 and ended in 1988.
According to the release, the partnership between HAL and UAC reflects the mutual trust that the two organisations have developed over years of collaboration on aerospace projects.
The initiative is expected to help meet India's growing aviation needs. Industry estimates suggest that over the next decade, the country will require more than 200 jets in this category to strengthen regional connectivity, along with an additional 350 aircraft to cater to the Indian Ocean region and nearby international tourist routes.
"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 release said.
HAL said that the project is expected to boost local manufacturing, provide opportunities for private industry participation, and generate both direct and indirect employment across the aviation value chain.