General Electric Nears $1 Billion Engine Deal with India for Fighter Jets
General Electric (GE) is close to securing a $1 billion contract with India to supply 113 GE-404 engines for Light Combat Aircraft (LCA) Tejas Mark 1A fighters. This deal builds on an existing contract, bringing the total engines for the program to 212. India's state-owned Hindustan Aeronautics Ltd (HAL) plans to deliver 83 aircraft by 2029-30 and the remaining 97 by 2033-34. GE is also in talks for another potential $1.50 billion deal for 200 GE-414 engines, which includes 80% technology transfer. These agreements align with India's air force modernization efforts and its push for greater defense sector indigenization.
*this image is generated using AI for illustrative purposes only.
General Electric (GE) is on the brink of securing a significant contract with India, highlighting the company's strong position in the global aerospace and defense market. The deal, valued at approximately $1 billion, involves the supply of 113 GE-404 engines to power India's Light Combat Aircraft (LCA) Tejas Mark 1A fighters.
Deal Specifics
| Item | Details |
|---|---|
| Contract Value | Approximately $1 billion |
| Number of Engines | 113 |
| Aircraft | 97 additional LCA Tejas Mark 1A fighters |
| Expected Completion | September |
This agreement builds upon an existing contract between Hindustan Aeronautics Ltd (HAL) and GE for 99 engines, bringing the total number of engines for the LCA Tejas Mark 1A program to 212.
Production and Delivery Timeline
HAL, India's state-owned aerospace and defense company, has outlined an ambitious production schedule:
- First batch of 83 aircraft: Delivery expected by 2029-30
- Remaining 97 aircraft: Planned delivery by 2033-34
Strategic Implications
This deal is part of India's broader initiative to modernize its air force and replace its aging fleet of MiG-21 fighters. It also aligns with the country's push for greater indigenization in the defense sector.
Future Prospects
Beyond the current deal, GE is in advanced talks with India for another significant contract:
| Item | Details |
|---|---|
| Potential Deal Value | $1.50 billion |
| Scope | 200 GE-414 engines |
| Applications | LCA Mark 2 and Advanced Medium Combat Aircraft projects |
| Technology Transfer | Includes 80% technology transfer |
This potential future agreement underscores GE's commitment to not only supply engines but also to contribute to India's technological capabilities in the aerospace sector.
The deals with India represent a significant opportunity for General Electric, reinforcing its position as a key player in the global aerospace and defense industry. As these projects progress, they are likely to have a positive impact on GE's aerospace division revenues and could potentially lead to long-term partnerships in one of the world's fastest-growing defense markets.
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