In a major development for India's indigenous military aviation program, the United States has given a firm commitment to ensure a regular and uninterrupted supply of GE Aerospace's F404-IN20 engines for the Tejas Mk1A fighter jet.
This assurance has resolved previous production bottlenecks and given the Indian government the confidence to approve the purchase of 97 additional aircraft.
The Defence Acquisition Council (DAC), India’s top body for military procurement, cleared the order for the additional Tejas Mk1A jets on August 19, 2025.
This new deal is valued at approximately ₹62,000 crore ($7.3 billion) and signals a strong push towards modernising the Indian Air Force (IAF) with domestically produced hardware.
Overcoming Critical Production Hurdles
The Tejas program, which is crucial for replacing the IAF's aging MiG-21 fleet, had faced significant setbacks due to inconsistent delivery of its American-made engines.In February 2021, Hindustan Aeronautics Limited (HAL) secured a ₹48,000 crore contract to build 83 Tejas Mk1A jets. Subsequently, in August 2021, a $716 million deal was signed with GE Aerospace for 99 F404-IN20 engines to power them.
However, a combination of global supply chain disruptions following the COVID-19 pandemic and a five-year pause in the F404-IN20 production line between 2016 and 2021 resulted in a two-year delay.
The lack of engines stalled HAL's assembly line, leading to public expressions of concern from senior IAF officials by late 2024.
Recent progress has put the program back on track. GE Aerospace delivered the first engine to HAL on March 25, 2025, and a second on July 14, 2025. A third is expected by the end of August 2025.
GE has now established a revised schedule, committing to deliver 12 engines by the close of 2025 and ramping up to two engines per month by early 2026. This has allowed HAL to forecast the production of 12 Tejas Mk1A aircraft by the end of the year.
High-Level Diplomacy and Strategic Partnership
The resolution of the engine supply issue is a direct result of sustained high-level diplomatic engagement between India and the United States.The matter was reportedly discussed by Prime Minister Narendra Modi during his visit to the U.S. in September 2024, and Defence Minister Rajnath Singh also raised the issue with his American counterpart.
Reflecting the strengthening India-U.S. strategic partnership, Pentagon officials have assured New Delhi that the current administration will not disrupt the supply of military hardware or spares.
This commitment is reinforced by agreements like the Security of Supply Arrangement (SoSA) and India's designation as a Major Defense Partner, which facilitate closer defence and technology cooperation.
Enhancing Air Force Capabilities
The F404-IN20 engine is the most powerful variant in its family, providing 84 kilonewtons of thrust. It is equipped with modern features like a Full Authority Digital Engine Control (FADEC) system for optimal performance and has been specially adapted for India’s diverse and extreme climatic conditions.This engine allows the Tejas Mk1A to effectively carry out a range of missions, including air-to-air combat, ground attack, and reconnaissance.
The timely delivery of these jets is critical for the IAF, which is currently operating with approximately 31 fighter squadrons against a sanctioned strength of 42.5 needed to manage regional security challenges.
To meet the demand of the combined order of 180 aircraft (83 previous and 97 new), HAL has ramped up its production capabilities at its facilities in Bengaluru and Nashik, aiming to achieve an annual production rate of 24 jets by 2026.
Future of Engine Co-Production
The collaboration is set to deepen further. With the new order of 97 jets, negotiations for an additional batch of F404 engines are expected to conclude soon.More significantly, India and the U.S. are finalising an agreement for the joint production of the next-generation GE F414 engine in India. This engine will power the future Tejas Mk2 and the Advanced Medium Combat Aircraft (AMCA).
The deal, expected by March 2026, includes an 80% Transfer of Technology (ToT), which will provide a major boost to India's goal of achieving self-reliance in aerospace and defence manufacturing.
