The deal comes at a time when ties between the US and India have come under strain over President Donald Trump's decision to impose harsh tariffs as punishment for New Delhi's purchases of Russian oil.
The two nations have yet to secure a trade deal, although Trump and Indian Prime Minister Narendra Modi have adopted a more conciliatory tone on bilateral ties after relations plummeted in August.
On Friday, Hindustan Aeronautics Limited (HAL) said the pact would see GE Aerospace supply 113 engines for an advanced version of the Tejas fighter referred to as Mk1A.
"The engine deliveries would be from 2027 to 2032," HAL said in a statement posted on social media platform X, without offering details on the contract's value.
The announcement comes a little over a month after India placed a $7 billion order with HAL for 97 light combat aircraft Mk1A.
One of the world's largest arms importers, India has made the modernisation of its forces a top priority and has made repeated pushes to boost domestic production.
New Delhi is eyeing threats from multiple nations, especially neighbouring Pakistan.
The two sides fought a four-day conflict in May, their worst clash since 1999. Both claimed victory, each boasting of downing the other's fighter jets.
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