The call comes as HAL and GE Aerospace have reached an agreement on key technical aspects for the co-production of F414 jet engines in India, marking a crucial milestone since the original MoU was signed in 2023.
Commercial negotiations are now expected to conclude between December 2026 and March 2027.
The F414 engines are likely to power the Tejas Mk2 programme, which involves over 100 aircraft, as well as the first two squadrons of the AMCA Mk1.
While timelines for commercial finalisation and execution risks remain key monitorables, Citi sees this development as a medium-term positive for HAL.
ALSO READ | ICICI Lombard will react to Q4 with premium growth ahead of industry
Earlier this week, GE Aerospace confirmed that both sides have made significant progress in advancing the collaboration, following nearly three years of discussions to finalise the contours of the programme.
The company said the agreement on technical matters marks a major step forward in strengthening India-US defence cooperation and builds on over four decades of partnership between GE Aerospace and HAL.
