India is poised to formalise one of its most consequential defence-industrial agreements with the United States, with the long-negotiated technology transfer deal for General Electric’s F414 fighter jet engines expected to be signed by March 2026, according to sources familiar with the process.
Negotiations for the prospective contract—valued at around USD 1.5 billion—have now been concluded, laying the groundwork for an unprecedented 80 per cent Transfer of Technology (ToT). Once approved by both governments, a process anticipated to be completed within the first quarter of 2026, the agreement will mark a watershed moment in India’s quest for self-reliance in advanced military aerospace propulsion.
The deal is central to the Tejas Mk2 programme, the Indian Air Force’s (IAF) next-generation medium-weight fighter intended to bridge the capability gap between the Tejas Mk1A and future fifth-generation platforms. Under the agreement, Hindustan Aeronautics Limited (HAL) will begin a phased absorption of critical manufacturing and integration technologies for the F414 engine, which produces nearly 98 kN of thrust with afterburner and is considered a proven, high-performance powerplant.
The stated objective is to establish a comprehensive domestic ecosystem capable of manufacturing, servicing, and sustaining advanced fighter engines within India. Defence officials view this as a decisive shift away from licensed assembly towards genuine industrial capability and long-term sustainment independence.
The scale of the proposed 80 per cent ToT represents a significant leap over previous defence collaborations. Open-source assessments suggest that the transfer is likely to include sensitive and previously restricted technologies, such as the machining of single-crystal turbine blades, laser drilling techniques for high-efficiency combustors, and specialised thermal and corrosion-resistant coatings. These technologies are considered among the most complex elements of modern jet engine production and have historically been tightly controlled by engine manufacturers.
If the March 2026 timeline holds, HAL is targeting the rollout of the first “Made-in-India” F414 engine by mid-2029. The intervening three years will be used to establish dedicated production lines, calibrate and validate high-precision testing facilities, and certify licensed manufacturing processes to meet both Indian and international airworthiness standards.
While the immediate focus is the Tejas Mk2, the industrial capability created under the agreement is expected to extend beyond a single platform. Officials indicate that the domestically produced F414 engines could also power the Advanced Medium Combat Aircraft (AMCA) Mk1, and potentially form the basis for future engine variants or upgrade pathways.
To ensure the Tejas Mk2 development schedule remains on track during the transition to local manufacturing, initial prototypes will be powered by F414 engines supplied directly by GE. These engines are already being maintained by HAL under original equipment manufacturer protocols and have undergone periodic ground trials to verify operational readiness.
HAL plans to roll out the first Tejas Mk2 prototype in 2026 using one of these imported engines. A total of four prototypes are scheduled to be built progressively up to 2031, forming the backbone of an extensive flight test programme. This campaign will focus on validating the aircraft’s expanded aerodynamic envelope, digital flight control systems, mission system integration, and weapons release capabilities across a wide range of operational scenarios.
In parallel, HAL has proposed accelerating induction through a Limited Series Production (LSP) run. Subject to IAF approval, the plan envisions manufacturing eight LSP aircraft between 2030 and 2032, ahead of final production clearance. These aircraft would allow early pilot conversion, generate critical performance data, and act as testbeds for indigenous weapons, sensors, and mission computers—substantially reducing risk ahead of full-scale production planned for 2032–33.
By securing access to 80 per cent of core fighter engine technology and aligning it with an accelerated development and production roadmap, India is positioning itself not merely as a buyer, but as a long-term co-developer of high-performance combat aircraft propulsion systems.
