In a landmark step for India’s defence sector, Hindustan Aeronautics Limited (HAL) on Wednesday signed its biggest-ever single contract, worth approximately ₹66,500 crore, with the Ministry of Defence to supply 97 additional Light Combat Aircraft (LCA) Tejas Mk1A fighter jets to the Indian Air Force (IAF).
The historic agreement cements HAL’s status as the backbone of India’s indigenous military aviation industry and marks a significant boost to the government’s long-standing push for self-reliance in defence, or Atmanirbharta.
“This is truly a red-letter day for HAL,” said Dr. D.K. Sunil, Chairman and Managing Director of the state-owned aerospace giant. “This order is not just a commercial milestone but a powerful recognition of the Tejas program and of India’s capability to design and produce world-class fighter aircraft.”
With the deal, the IAF’s fleet of Tejas Mk1A jets will expand significantly, enhancing both numbers and capability at a time when the force faces the twin challenge of replacing its ageing Soviet-era fighters while preparing for a new era of high-tech air warfare.
The ₹66,500 crore contract covers the production of 68 single-seat combat variants and 29 twin-seat trainers. Deliveries will begin in the 2027-28 financial year and will be phased over six years.
This order comes on the back of the previous contract signed in January 2021, under which HAL was tasked with supplying 83 Tejas Mk1A jets at a cost of ₹46,898 crore. The new deal not only raises the total number of Tejas jets on order to 180 Mk1A fighters, but also signals the IAF’s growing faith in the program.
Defence officials have called it one of the most important military aviation procurements in India’s history, surpassing in scale many earlier indigenous and import acquisitions.
A defining feature of the new contract is the push to raise the indigenous content of the Tejas to 70 percent. This will include critical systems such as the Uttam Active Electronically Scanned Array (AESA) radar, designed by the Defence Research and Development Organisation (DRDO), and a sophisticated electronic warfare suite developed by Indian industry.
“The work HAL is doing and the ecosystem we are building is an excellent example of how the government is walking the talk of Atmanirbharta,” Dr. Sunil said.
The move is expected to stimulate the domestic defence supply chain, creating jobs across small and medium enterprises, private firms, and research institutions. HAL officials estimate that over 500 Indian companies are already part of the Tejas ecosystem, ranging from avionics manufacturers to precision engineering suppliers.
By reducing dependency on foreign systems, India also seeks to shield itself from supply disruptions, sanctions, or geopolitical uncertainty.
The Tejas Mk1A is a significantly upgraded version of the baseline LCA Tejas, which was first inducted into the IAF in 2016 after decades of development.
The Mk1A variant introduces enhanced avionics, better maintainability, modern cockpit interfaces, and improved survivability systems. It will be capable of firing a wider array of advanced missiles, including the indigenous Astra beyond-visual-range air-to-air missile.
The incorporation of the indigenous Uttam AESA radar is particularly significant. AESA radars are the heart of modern fighter combat, offering greater range, resistance to jamming, and simultaneous tracking of multiple targets. Coupled with the electronic warfare suite, the Tejas Mk1A is expected to rival or surpass many contemporary fighters in its class.
The aircraft’s lighter frame, agility, and ease of maintenance have also been highlighted as advantages for operational deployment.
The IAF currently operates about 30 fighter squadrons, against a sanctioned strength of 42. With the gradual phasing out of the ageing MiG-21 Bison aircraft, which have been the mainstay of India’s fleet for decades, replenishing numbers is critical.
The induction of 97 new Tejas Mk1As is expected to significantly alleviate the shortfall, even as the IAF awaits the development of more advanced platforms such as the Tejas Mk2 and the Advanced Medium Combat Aircraft (AMCA).
“This order is a lifeline for the IAF’s modernization plan,” a senior defence official said. “It ensures that we do not face a critical gap in squadron strength while transitioning to next-generation fighters.”
The Tejas has already proven its operational reliability in multiple IAF exercises and deployments, including during the India-China standoff in Ladakh in 2020 when Tejas jets were forward deployed.
To power the new fleet, HAL has finalized a deal with General Electric (GE) for 113 F404 engines. While the Tejas program has faced criticism for reliance on imported engines, HAL officials note that efforts are underway to co-produce the F414 engines for the future Tejas Mk2 in India.
Dr. Sunil acknowledged past delays in engine delivery but expressed confidence that GE’s supply chain issues were being resolved. “GE’s top management is fully aligned with us now, and they have committed to ramping up production to meet our needs,” he said.
Analysts suggest that while reliance on imported engines remains a vulnerability, the broader localization of avionics, radar, weapons, and other systems offsets this concern to a large extent.
The ripple effects of the ₹66,500 crore order will extend far beyond HAL. Industry experts estimate that the program could generate tens of thousands of jobs across the Indian defence ecosystem, from engineering graduates to technicians on the shop floor.
HAL has already been expanding its production facilities, including a new assembly line in Nashik, to ensure timely delivery of the expanded order book.
The emphasis on local content will also benefit private firms such as Bharat Electronics Limited (BEL), Larsen & Toubro (L&T), and a host of micro, small, and medium enterprises (MSMEs).
“This is how an indigenous program becomes an industry-wide catalyst,” said a defence industry analyst. “It’s not just about HAL. It’s about creating a whole value chain that strengthens India’s defence readiness.”
The Tejas program has faced its share of skepticism. Conceived in the early 1980s to replace the MiG-21, the project suffered from long delays, design challenges, and shifting requirements. Critics often dismissed it as a symbol of India’s inability to deliver cutting-edge defence projects on time.
But the 2021 and 2024 mega-orders, and the IAF’s operational endorsement, mark a turning point. The aircraft is now not just an experimental project but the future backbone of India’s light fighter fleet.
“What we are seeing is a shift from doubt to confidence,” a retired Air Marshal observed. “The Tejas has crossed the bridge from development hell to operational credibility.”
Beyond domestic orders, the Tejas has attracted export interest. Countries in Asia, Africa, and Latin America have reportedly shown curiosity about the fighter, though no firm deals have yet materialized.
The Mk1A’s competitive price point, indigenous systems, and adaptability make it an attractive option for nations seeking affordable modern fighters without heavy geopolitical strings.
Officials suggest that successful large-scale induction into the IAF will be a strong advertisement for the jet’s export potential.
While the Tejas Mk1A fills an immediate gap, India’s long-term airpower strategy hinges on the Tejas Mk2 and the Advanced Medium Combat Aircraft (AMCA)—both under development.
The Mk2 will be a larger, more powerful multi-role fighter, while the AMCA is envisioned as a fifth-generation stealth fighter. Both programs are at critical stages of design and testing.
For now, however, the Mk1A order ensures continuity, confidence, and capability. It also provides the industrial experience and ecosystem strength needed to support more ambitious projects.
The ₹66,500 crore Tejas Mk1A order is more than just a defence contract. It represents a coming of age for India’s aerospace ambitions, a validation of decades of persistence, and a clear statement that the nation intends to control its own military destiny.
For HAL, it is both a challenge and an opportunity—to prove that it can deliver on time, at scale, and at global standards. For the IAF, it is a critical lifeline to keep its squadrons strong. And for India, it is a powerful symbol of Atmanirbharta taking flight.
