What Happened
- General Electric (GE) Aerospace delivered only six F404-IN20 engines to Hindustan Aeronautics Limited (HAL) in the fiscal year that ended on March 31, 2026 — falling significantly short of the revised contractual target of 11 engines for the year.
- GE cited the ongoing conflict in the Gulf region as a contributing factor to supply chain disruptions that delayed engine deliveries; the Gulf war has affected global aerospace supply chains including for precision-manufactured components.
- HAL currently has nine Tejas Mk1A airframes that have been built and test-flown but are grounded awaiting engines, while five aircraft are fully ready with engines installed.
- The engine shortage is the primary bottleneck in the entire Tejas Mk1A induction programme — HAL's chief confirmed there is "no Plan B," meaning no alternative engine that can be substituted in the Mk1A airframe.
- GE has committed to a ramp-up: 24 engines in FY 2026-27 and 30 engines annually from FY 2027-28 onward, to clear the production backlog.
- A follow-on contract for 113 additional F404-IN20 engines was signed in November 2025, with deliveries scheduled from 2027 through 2032, supporting both the existing 83-aircraft contract and a new order for 97 additional aircraft.
Static Topic Bridges
Tejas Mk1A: India's Indigenous Light Combat Aircraft
The HAL Tejas is India's indigenously designed and built Light Combat Aircraft (LCA), developed by the Aeronautical Development Agency (ADA) under the DRDO and manufactured by HAL in Bengaluru. The Mk1A variant is an upgraded version of the original Mk1, featuring Active Electronically Scanned Array (AESA) radar, an advanced self-protection jammer, updated avionics, and enhanced electronic warfare systems. The IAF placed an initial order for 83 Mk1A aircraft in February 2021 at a cost of approximately ₹48,000 crore; a second order for 97 additional aircraft (including 29 twin-seaters) was signed in September 2025 at approximately ₹66,000 crore. The combined fleet of 180 Mk1A jets will form nine IAF squadrons, primarily replacing the aging MiG-21.
- Tejas Mk1A engine: GE F404-IN20 (developed specifically for the Indian variant; 84 kN thrust with afterburner)
- AESA radar: Israeli EL/M-2052 on the first 40 aircraft; DRDO's indigenous Uttam AESA on later batches
- First flight of LCA prototype: January 4, 1995; IOC (Initial Operational Clearance): 2013; FOC: 2019
- Total Mk1A orders: 83 (2021 contract) + 97 (2025 contract) = 180 aircraft
- HAL production rate target: 24 jets/year from FY 2026-27; 18 jets/year currently
Connection to this news: The delivery shortfall — six engines against a target of eleven — directly freezes nine completed airframes on the production line, illustrating the critical vulnerability of India's "Make in India" defence programme to external supply chain shocks.
India's Defence Procurement: Make in India and Self-Reliance
The Atma Nirbhar Bharat (Self-Reliant India) policy in defence, formalised through the Defence Acquisition Procedure (DAP) 2020, mandates increasing domestic content in Indian defence procurement. The Defence Procurement Procedure classifies acquisitions into categories ranging from "Buy Indian-IDDM" (Indian Design, Development, Manufacturing) to "Buy Global." Tejas Mk1A falls under the domestic production push, but its critical dependency on imported GE engines highlights the gap between policy aspiration and industrial reality. The DAP also includes a Defence Research and Development Organisation (DRDO) mandate to develop indigenous alternatives for critical sub-systems over time — the Uttam AESA radar and a future Kaveri derivative engine are examples.
- Defence Acquisition Procedure (DAP) 2020 replaced DPP 2016; emphasises domestic value addition
- Defence Production and Export Promotion Policy (DPEPP) 2020 targets $5 billion defence exports by 2025
- Kaveri engine (DRDO): under development since 1989; not yet flight-qualified; not interchangeable with F404
- Indigenous content in Tejas Mk1A: approximately 50-60% by value; engine and some avionics remain imported
- HAL's annual turnover: approximately ₹30,000 crore (FY2024-25)
Connection to this news: The F404 supply crisis underscores the single-point failure risk in the Tejas programme — with no alternative engine available, any disruption to GE's supply chain directly stalls IAF induction, strengthening the case for accelerating indigenous propulsion development.
GE-HAL Engine Partnership and Technology Transfer
The F404-IN20 is a variant of GE's widely used F404 family, modified to meet Indian Air Force specifications. Under the 2020 contract framework, GE Aerospace and HAL signed agreements not only for supply but also for progressive technology transfer and licensed manufacturing of components in India. GE has committed to assembling engines at HAL's Bengaluru facility under the Technology Transfer (ToT) agreement, which will eventually allow HAL to perform final assembly domestically. This arrangement fits India's Industrial Security Annexe and Offset policy requirements. However, the full benefit of the ToT agreement depends on GE sustaining delivery volumes sufficient to build manufacturing expertise at HAL.
- F404 engine family has powered aircraft in over 25 countries; variants include F/A-18 Hornet engines
- Total F404-IN20 procurement: original 99-engine contract + follow-on 113-engine contract (Nov 2025) = 212 engines
- Technology Transfer: GE to progressively shift assembly to HAL Bengaluru facility
- GE committed to 30 engines/year from FY 2027-28, consistent with HAL's 18-24 aircraft/year target
Connection to this news: The Gulf war's impact on GE's global supply chain — a first-order foreign policy and energy event — creates a second-order effect on India's domestic defence production timeline, demonstrating how India's strategic autonomy in defence remains constrained by global industrial dependencies.
Key Facts & Data
- GE delivered 6 F404-IN20 engines to HAL in FY 2025-26 against a target of 11
- 9 Tejas Mk1A airframes are complete and test-flown but grounded awaiting engines
- GE committed to delivering 24 engines in FY 2026-27 and 30 per year from FY 2027-28
- Follow-on contract for 113 F404-IN20 engines signed November 2025; deliveries 2027-2032
- Total Tejas Mk1A on order: 180 aircraft (83 + 97); combined value approximately ₹1,14,000 crore
- DRDO's Uttam AESA radar will replace Israeli EL/M-2052 from the 41st aircraft onward
- HAL chief confirmed no alternative engine exists for the Mk1A airframe ("no Plan B")