India Explores Engine Deal With France's Safran For Advanced Tejas Mk2 Fleet
After Operation Sindoor, there is a renewed urgency to scale up production and delivery of advanced fighter jets, said defence officials
India is exploring a possible collaboration with French aerospace giant Safran to develop jet engines for its next-generation Tejas Mk-2 light combat aircraft.
While US-based GE Aerospace currently provides the F404-IN20 engines powering the Tejas Mk-1, supply delays have disrupted delivery schedules, creating challenges for Hindustan Aeronautics Limited (HAL) and slowing the Indian Air Force's efforts to strengthen its fighter fleet, senior defence officials told Moneycontrol.
The delays have prompted India to reassess its options and seek additional partnerships that could speed up domestic engine development, they added.
The Indian Air Force (IAF), which aims to operate 42 fighter squadrons, currently has just 31 active.
Following the heightened security challenges after Operation Sindoor, there is a renewed urgency to scale up production and delivery of advanced fighter jets, said the officials, adding that defence planners are now prioritising alternatives to ensure engine availability and reduce dependence on any single supplier.
The strategic reassessment also stems from concerns about the consistency of foreign technology transfers and supply chains. 'All viable options are being evaluated to meet the IAF's growing needs," a senior official told Moneycontrol.
India's indigenous fighter program began gaining momentum with the IAF's first Tejas Mk-1 order in 2009-10, comprising 40 aircraft (32 fighters and 8 trainers).
A second, much larger order for 83 Tejas Mk-1A jets was signed in 2021, valued at ₹48,000 crore. Deliveries were initially scheduled to begin in mid-2024, but delays in engine shipments from GE have pushed back timelines.
GE has delivered one of the 99 F404 engines contracted in 2021, on top of the 65 engines supplied earlier for the Mk-1 fleet. The more advanced F414 engines—also from GE—are designated to power the Tejas Mk-2 variant and India's future fifth-generation Advanced Medium Combat Aircraft (AMCA).
However, recurring delays and strategic concerns have brought Safran into focus as a potential partner, the officials said. If discussions succeed, the French firm may be involved in developing engines specifically for the Tejas Mk-2 platform.
Future-Ready: The Tejas Mk-2
The Tejas Mk-2, a 4.5-generation fighter weighing approximately 17.5 tonnes, is slated to eventually replace ageing aircraft in the IAF fleet, including the Mirage-2000, Jaguar, and MiG-29. It promises greater range, payload, and versatility than its predecessor, making timely engine development critical.
Officials noted that diversifying partnerships is not only about avoiding supply bottlenecks but also about acquiring the technical expertise necessary to build engines domestically.
This aligns with India's broader goal under the 'Aatmanirbhar Bharat" initiative to reduce reliance on imported defence hardware.
As India balances growing security imperatives with industrial ambition, a partnership with Safran—if finalised—could mark a turning point in the country's journey toward self-sufficiency in combat aviation.
First Published:
May 27, 2025, 23:51 IST
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
17 minutes ago
- Business Standard
6 factors that will impact India Inc's earnings in the quarters ahead
The June 2-25 quarter (Q1-FY26) Nifty earnings are likely to be weak, with growth expected at only 5 per cent year-on-year (YoY). Excluding metals and oil marketing companies, earnings growth drops closer to 4 per cent. A significant drag comes from the private banking sector, which is expected to report its second consecutive quarter of declining earnings since March 2020. Meanwhile, the PSU banking sector is likely to report moderate earnings growth of 5 per cent, the lowest in 20 quarters. The auto sector is projected to see a year-on-year decline of 10 per cent. Pharma sector is expected to report 11 per cent year-on-year growth, marking a moderation after eight consecutive quarters of 15 per cent+ earnings growth. The chemical sector is expected to record 10 per cent year-on-year earnings growth, marking its second consecutive quarter of growth after seven quarters of decline. That said, there are six factors that will impact earnings growth in the quarters ahead. #1: Low inflation is dragging down revenue growth Low inflation is good for our economy and has resulted in an easy monetary policy as well as lower interest rates. Lower interest rates help higher valuations in the market. However, lower inflation also means lower nominal GDP growth. There is a strong linkage between nominal GDP growth and revenue growth. While real GDP growth in India will be robust in FY26, we see nominal GDP growth at 9 per cent being amongst the lowest over past 20 years given likely GDP deflator of under 3 per cent. Over the past 20 years, FY20 was the only year which saw a lower nominal GDP growth excluding Covid-impacted FY21. #2: Banks dragging down overall earnings The banking sector has a significant impact on overall earnings growth given that it accounts for over a third of the index. Over the past few years, a revival in bank earnings led by lower provisions and rising NIMs helped overall earnings growth. However, with interest rates falling NIMs are coming under pressure and bank earnings are lacklustre. This is dragging down overall earnings growth. Earnings growth #3: Margins peaking? Onus on revenue growth Analysts are forecasting FY26 EBITDA margins at 21.8 per cent, which will be the highest in a decade. While margins may not fall materially, we think margin increase from here will be difficult. Thus bulk of earnings growth will have to be accounted by increased revenue growth. #4: Trump tariffs can be a mixed bag We see a greater probability of Trump going ahead with his tariff plans from August 1st. This has the risk of raising inflation in the USA as tariffs seem to average well above the 10 per cent rate currently. Moreover, this could trigger a slow-down in the USA and impact growth across the world including India. So, while tariffs are overall negative in terms of a slowing global economy, the more specific impact on India depends on the contours of an Indo-US trade pact, if any. The key to watch is the tariffs on Indian goods relative to that on other countries it competes with. We think a tariff of around 15 per cent may relatively be good for India given that most competitors are currently at 20-30 per cent tariffs. #5: Consumption spend should improve Three factors will drive consumption spend over the next few months. First, the monsoons. Better monsoons have led to better sowing of crops. Some of this could be due to early sowing relative to last year since monsoons arrived ahead of the normal schedule. But with monsoons looking normal, we think agriculture growth will be strong this year leading to higher rural income. Second is urban consumption, which will be supported by the tax break of around Rs 1 lakh crores given in the budget in February 2025. Thirdly, lower interest rates and easy monetary conditions will lead to lower EMIs helping urban consumption. #6: Capex is better than consensus believes The consensus view is that the Government has done most of the heavy lifting on capex and private sector capex has been missing. The good news is that Government has continued to accelerate capex spend and has rightly front loaded its capex for the year. But the even better news is that the private sector capex has accelerated over the past 2 years. We still do not see anything like the animal spirits we saw in FY2004-07 phase. But even a more gradual recovery will help the economy and earnings. Listed corporate capex will practically double from FY22 to FY26. Listed corporate capex as per cent of Nominal GDP has moved up from 2.7 per cent in FY22 to 3.3 per cent in FY25.
Time of India
17 minutes ago
- Time of India
Apple beats US appeal claiming it shortchanged customers on iCloud storage
A US appeals court dismissed claims that Apple misled iCloud+ users by not adding paid storage to the free 5GB. Judges ruled consumers received what was promised—200GB total, not 205GB. The court upheld a previous dismissal, calling the misunderstanding unreasonable and unrepresentative of typical consumer expectations. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads A US federal appeals court on Wednesday rejected claims by Apple customers that the iPhone maker gave them less iCloud data storage than they paid for when a 3-0 decision, the 9th US Circuit Court of Appeals in San Francisco said reasonable consumers in the proposed class action would not have been misled by Apple's promises about storage capacity in its iCloud+ plaintiff Lisa Bodenburg said she paid $2.99 a month for 200 GB of storage, believing Apple would add it to the 5 GB that all iCloud customers receive, and was shortchanged because Apple gave her only 200 GB of total storage, not 205 Judge Milan Smith, however said Bodenburg "received exactly what Apple promised her" when the Cupertino, California-based company offered "incremental" or "supplemental" storage, on top of the 5 GB she got for cited dismissals of other cases based on "unreasonable assumptions," including that Diet Dr. Pepper would aid in weight loss, and the net weight on a lip balm label failed to reveal that the dispenser's design left some balm inaccessible."Apple's statements are not false and deceptive merely because [they] may be unreasonably misunderstood by an insignificant and unrepresentative segment of consumers," Smith for Bodenburg did not immediately respond to requests for comment. The decision upheld a May 2024 dismissal by US District Judge Trina Thompson in San case is Bodenburg v Apple Inc, 9th US Circuit Court of Appeals, No. 24-3335.
Hindustan Times
17 minutes ago
- Hindustan Times
US tech giants welcome Donald Trump's new AI plan
America's biggest technology companies welcomed the Trump's administration's new Artificial Intelligence plan which pushes for less red tape and a freer hand for firms developing AI. President Donald Trump arrives to speak at an AI summit at the Andrew W. Mellon Auditorium, Wednesday, July 23, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)(AP) 'AI is the birthright of the country that harnessed the atom and put a man on the moon. With today's AI Action Plan, the Trump Administration has written the source code for the next American century. Palantir is proud to support it,' reads a press release from the Denver-based company, which works closely with the US government on a number of key defence and intelligence related projects. Speaking on Wednesday, Donald Trump made clear that the plan's objective was to place America in the best position to win the AI race. "America is the country that started the AI race — and as President of the United States, I'm here today to declare that America is going to WIN it," he said in a speech. 'NetChoice applauds the White House's AI Action Plan overall and is encouraged to see the focus on red tape reduction and investment in America's future. From unleashing energy to embracing regulatory humility and ensuring our AI systems are adopted around the world, we look forward to working with the President to usher in the Golden Age of American innovation,' said Patrick Hegder, Director of Policy at NetChoice, an industry trade group which counts Meta, Amazon and Google among its membership. Trump's new AI plan, unveiled on Wednesday, focuses on establishing American dominance in the cutting edge technology. Reduced regulation, easier permitting for building data centers and energy infrastructure and exporting American AI stacks abroad form three key pillars of the new policy. 'The United States must meet global demand for AI by exporting its full AI technology stack—hardware, models, software, applications, and standards—to all countries willing to join America's AI alliance. A failure to meet this demand would be an unforced error, causing these countries to turn to our rivals. The distribution and diffusion of American technology will stop our strategic rivals from making our allies dependent on foreign adversary technology,' reads the plan document. The document also pledges to counter Chinese influence in international governance bodies that deal with AI. While industry bodies have welcomed the new AI plan, some have urged caution. The Trump Administration's plan outlines the need to correct ideological biases in AI models. However, experts point out that delivering on this front will be difficult for companies. 'I don't envy the civil servants operationalizing this: ideological bias can be in the eye of the beholder, and First Amendment considerations may complicate things. High-performing LLMs will not be able to sidestep ideologically contested territory—advising on future weather trends, for example, will require models to draw on some understanding of climate science,' writes Caleb Withers, Research Associate in the technology and national security program at the Center For A New American Security (CNAS). Experts also point out that the Trump administration's plans to export AI technology and work closely with allies and partners is a welcome development. However, America's insistence on calling for 'dominance' creates difficulties for countries around the world. 'The US already has clear leadership or leverage at virtually every level of the AI stack, and we should obviously seek to secure and extend this advantage. But words matter, and there's a tension between publicly calling for "dominance" on the one hand, and seeking to "ensure our allies are building on American technology" on the other. We've already seen anxiety in foreign capitals about dependence on US cloud providers. This will surely continue for AI. They worry Washington's weaponization of its economic leverage in the trade domain will continue in the digital one,' writes Vivek Chilukuri, who directs the technology and national security program at CNAS 'Partnerships that pull foreign capitals into America's orbit and strike a balance between protecting their sovereignty and sensitive US technology will be more effective than expecting outright dependence,' Chilukuri adds.
