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India-US GE F414 Engine Deal for AMCA Hits Roadblock as Costs Triple; DRDO Explores Alternatives

BRIEF: India's GE F414 engine deal with the US has hit a roadblock after costs reportedly rose from ₹70–80 crore to over ₹200 crore per engine. As commercial negotiations stall, DRDO is evaluating alternative engine options for the AMCA programme while officials say the project remains on track.
Sarthak Goswami June 24, 2026
GE-414

India explores alternative fighter jet engines as GE F414 deal hits a roadblock over costs.

NEW DELHI: Negotiations between India and the United States for the co-production of GE F414 jet engines have hit a roadblock after a sharp rise in costs. The deal, aimed at powering the Tejas Mk2 and initial prototypes of the Advanced Medium Combat Aircraft (AMCA), is now under review as Indian authorities explore alternative options.

According to defence establishment sources, the GE F414-INS6 engine, which produces around 98 kilonewtons of thrust, was selected as an interim solution. It was expected to support the larger Tejas Mk2 fighter as well as the first squadrons of the stealthy AMCA Mk1. Hindustan Aeronautics Limited (HAL) and GE Aerospace had made significant progress on technical aspects, including plans for about 80 percent technology transfer for local manufacturing in India.

Cost Concerns Trigger Review

Sources told media outlets that the initial projected cost was in the range of 70 to 80 crore rupees per engine. During commercial negotiations, GE has quoted a price of over 200 crore rupees per unit. Factors include inflation, supply chain issues, and the cost of setting up production facilities with deep localisation. This escalation has stalled the talks.

According to reports, the development comes at a critical time for India’s fighter aircraft programmes. The Indian Air Force faces squadron shortages, and timely delivery of indigenous platforms remains a priority. Officials have indicated that the overall AMCA programme will stay on track despite the commercial hurdle.

Alternatives Under Consideration

DRDO is now evaluating other propulsion options. These include an Indo-French collaboration with Safran for a 120 kN-class engine aimed at AMCA Mk2. Safran has offered co-development with full technology transfer and modular designs for future upgrades.

Rolls-Royce has proposed a clean-sheet engine in the 110-130 kN range. The offer includes full intellectual property rights for India, joint development with GTRE, and a manufacturing facility in the country. Proposed timelines include core testing around 2030 and production by 2036.

DRDO’s Gas Turbine Research Establishment (GTRE) is also accelerating indigenous work on a 120 kN-class engine under the National Aero Engine Mission.

Background and Strategic Importance

The original GE F414 agreement was a key element of India-US defence cooperation. It aimed to boost Make in India through licensed production. The F414 engine family has a strong track record in aircraft such as the F/A-18 Super Hornet.

For the AMCA programme, the F414 serves as a bridge for Mk1 while India develops higher-thrust engines for Mk2. These more powerful engines are needed for capabilities such as supercruise and optimised stealth performance.

Defence analysts say engine technology remains a critical area for India’s aerospace self-reliance. The current situation shows both the challenges of international collaboration and the opportunities created by competition among global suppliers. No final decision on alternatives has been announced, and commercial discussions with GE may continue.

The Indian government and DRDO have reiterated their commitment to the AMCA timeline. This includes planned first flights and inductions in the coming years.

About the Author

Sarthak Goswami's avatar

Sarthak Goswami

Author

Sarthak Goswami is a journalism scholar at the University of Delhi. He is the Co-Founder and Editor of Beats in Brief, where he covers infrastructure, geopolitics, defence and the economy. Skilled in news writing, content creation, digital storytelling and social media-driven news, he brings a clear and insightful lens to every story.

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