Trump’s 50% Tariffs Take Effect: India Targets $1 Billion GE Deal To Fuel Tejas LCA

Upgraded 27 August 2025 at 11:13 IST

While the 2nd tranche of 25 percent United States tariffs began today, India and the United States are inching closer to settle a USD 1 billion offer to obtain 113 extra GE-404 engines from defence significant General Electric

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Does India’s defence sectro stay unaffcted after 50 %United States tariffs enter impact today?|Image: AI-Generated Image

United States Tariffs I Defence Sector: While the 2nd tranche of 25 percent United States tariffs began today, India and the United States are inching closer to settle a USD 1 billion offer to obtain 113 extra GE-404 engines from defence significant General Electric for its Tejas Light Combat Aircraft(LCA )program.

When signed, it would end up being the 2nd considerable defence pact throughout increasing trade stress betweem India and the United States.

The settlements for the 113 engines are nearing conclusion and is anticipated to tattooed by September.

Previously, the very first offer included a Rs 62,000 crore agreement to get 97 more LCA Mark 1A fighter jets to boost the south Asian country’s fight fleet.

The brand-new GE-404 engine offer will guarantee fuel 83 Tejas jets bought by the Indian Air Force by obtaining 99 engines for the very same.

With this follow-on order, HAL is anticipated to get an overall of 212 GE-404 engines.

The US-headquartered defence producer General Electric is anticipated to preserve a stable shipment circulation with 2 engines each month ahead of the very first batch of Tejas jets slated for shipment by 2029-30.

The Tejas LCA is main to India’s efforts to change its aging fleet of MiG-21 fighter jets.

HAL is likewise in talks with GE for a 2nd offer including GE-414 engines, which would power the next-generation LCA Mark 2 and the native Advanced Medium Combat Aircraft (AMCA). This offer is most likely to consist of 80% transfer of innovation, a crucial action towards India’s objective of attaining self-reliance in defence.

While the United States tariff position reinforces and will affect over USD 40 billion worth of Indian products, cooperation in defence sector stays untouched. Bilateral trade talks in between both countries continue, nevertheless, the set up United States delegation see on August 27th had actually been delayed.