Massive Boost for Indian Air Power and Civil Aviation
In a significant double boost for the Indian aerospace sector, state-owned Hindustan Aeronautics Limited (HAL) has sealed two major international partnerships. The company announced a monumental $1 billion agreement with US-based General Electric (GE) to power India's indigenous fighter jet program, closely followed by a strategic pact with Russia to commence domestic production of a passenger aircraft.
A Landmark Deal for Fighter Jet Engines
On Friday, HAL revealed that it has entered into a contract with General Electric for the supply of 113 F404-GE-IN20 engines. This deal, signed on November 7, 2025, includes a comprehensive support package for the execution of the 97 LCA Mk1A programme. The contract for these 97 fighter aircraft was itself finalized in September 2025.
This agreement is strategically crucial as it ensures a continuous and uninterrupted supply chain. Engine deliveries are scheduled to take place between 2027 and 2032, allowing HAL to secure its complete requirement of 212 GE-404 engines without any potential delays that could hamper production schedules for the Light Combat Aircraft.
Forging a New Chapter in Civil Aviation with Russia
In another landmark move for the civil aviation sector, HAL signed a Memorandum of Understanding (MoU) with Russia’s Public Joint Stock Company United Aircraft Corporation (PJSC-UAC). The agreement, inked in Moscow on October 27, 2025, paves the way for the production of the SJ-100 civil commuter aircraft in India.
The SJ-100 is a proven, twin-engine, narrow-body aircraft already in commercial service, with over 200 units operating across 16 airlines worldwide. Under this new arrangement, HAL will acquire the manufacturing rights to produce the aircraft for India's domestic market. This initiative is perfectly aligned with the government's UDAN scheme, aimed at enhancing regional and short-haul connectivity.
This collaboration marks a historic moment, as it will be the first time in decades that a complete passenger aircraft will be manufactured in India, since the AVRO HS-748 project which ran from 1961 to 1988. HAL stated that this partnership reflects the strong trust built over years of aerospace cooperation between India and Russia.
The company emphasized that this project is a definitive step towards realizing the vision of an 'Aatmanirbhar Bharat' (Self-Reliant India) in the civil aviation sector. Industry experts estimate that India will require over 200 jets of this category in the next decade to improve regional connectivity, with an additional need for around 350 aircraft to serve the Indian Ocean region and international tourist routes.
This project is expected to significantly strengthen India’s aviation ecosystem by boosting local manufacturing capabilities, creating numerous opportunities for private sector participation, and generating substantial employment across the entire value chain.
