Amid Trump tariff row, India likely to sign $1 billion fighter jet deal with US firm GE by September: Report

This deal comes amid new tariff measures by the US on India taking effect on Wednesday, 27 August, raising the overall tariff burden on Indian goods to nearly 50 per cent.

Indian state-owned firm Hindustan Aeronautics Limited has already inked a deal for 99 GE-404 engines with the American firm for the initial 83 LCA Mark 1A fighter jets ordered by the Indian Air Force and these 113 would be in addition to that, the news agency said.

The deal comes soon after the Centre cleared a ₹62,000 crore deal to buy 97 more LCA Mark 1A fighter aircraft.

Defence officials told ANI that the negotiations to buy 113 more GE-404 engines from the American firm GE for the 97 LCAs are almost final. The deal is likely to be finalised by September this year.

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.

The HAL is working to supply the first 83 aircraft by the end of 2029-30 and the next batch of 97 LCA Mark 1As by 2033-34, they said.

American GE is expected to supply two engines per month from now on to fulfill its commitment for the Indian programme.

The HAL is also negotiating a deal with GE for buying its GE-414 engines with 80 per cent transfer of technology.

The Indian side requires 200 GE-414 engines for its LCA Mark 2 and Advanced Medium Combat Aircraft (AMCA).

The around USD 1.5 billion deal is likely to be signed in the next few months, and negotiations for it have been going on for a long time now, the officials said.

The Indian side requires 162 engines for the LCA Mark 2 aircraft and 10 others for the five prototypes of the AMCA.

The programme will help the IAF to replace its fleet of MiG-21s, which are finally being phased out by the government in the next few weeks.

‘Big boost for promoting indigenisation’

The indigenous fighter jet project is fully backed by the Defence Ministry, and Air Headquarters and is set to be a big boost for promoting indigenisation as well as give major business to the small and medium enterprises engaged in defence business across the country, defence officials said.

India is already working on an indigenous fighter aircraft engine project and will collaborate with the French firm Safran on it.

India aims to achieve self-reliance in the defence sector through indigenisation and is also acquiring technologies from various global sources.

The indigenous fighter jet project is fully backed by the Defence Ministry, set to be a big boost for promoting indigenisation.

A day before additional 25 per cent tariffs from the United States were to kick in, effectively raising import duties on India to 50 per cent, Prime Minister Narendra Modi on 26 August pushed for ‘Swadeshi’ and ‘Make in India’ approach.