India’s state-owned Hindustan Aeronautics Limited (HAL) said Friday it has signed a deal with U.S. manufacturer General Electric to acquire over 100 jet engines for the locally developed Tejas fighter aircraft.

The agreement comes as U.S.–India relations face new challenges following Washington’s decision to levy heavy tariffs in retaliation for New Delhi’s purchases of Russian crude oil.

Although the two countries have yet to conclude a trade accord, both governments have recently sought to ease tensions that escalated in August.

Under the pact, GE Aerospace will provide 113 engines for the upgraded Tejas Mk1A model, according to HAL.

The announcement follows India’s $7 billion contract with HAL for 97 Tejas Mk1A light combat aircraft, signed just over a month ago.

As one of the world’s largest arms buyers, India has made defense modernization and self-reliance key policy goals.

Amid rising security concerns from neighboring Pakistan, New Delhi continues to strengthen its aerial capabilities.

The two rivals fought a brief but intense four-day battle in May—their most serious since the 1999 conflict—with both nations claiming aerial victories.

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