This is big.
In what is being described as the largest deal for an indigenous fighter aircraft, the Ministry of Defence today signed a contract for the procurement of 97 Tejas Mk-1A jets from Hindustan Aeronautics Limited (HAL). The order is valued at over Rs 62,370 crore.
The deal was confirmed on Thursday, marking the largest order for an indigenous fighter aircraft platform to date.
Nearly 105 Indian companies are involved in the supply chain for the Tejas programme.
The production is expected to generate around 11,750 direct and indirect jobs annually over the duration of the contract.
The contract includes 68 single-seat fighter aircraft and 29 twin-seat trainers, along with associated equipment for the Indian Air Force. Deliveries are scheduled to begin in 2027-28 and will be completed over a period of six years.
The mega deal worth Rs 62,370 crore has been officially signed today, notably just one day before the retirement of the Indian Air Force's last two squadrons of MiG-21 fighter jets. The agreement follows an earlier contract signed in February 2021 for 83 Tejas Mk-1A aircraft, worth Rs 46,898 crore. That earlier project has faced delays. The current deal was cleared by the Cabinet Committee on Security, chaired by the Prime Minister, on August 19, 2025.
The aircraft in this order will have an indigenous content of over 64 percent and include 67 additional items compared to the 2021 contract. Among the new systems are the UTTAM AESA radar, the Swayam Raksha Kavach electronic warfare suite, and indigenously developed control surface actuators.
The procurement has been classified under the 'Buy (India-IDDM)' category of the Defence Acquisition Procedure 2020.
The aircraft is intended to meet the operational requirements of the IAF as older platforms such as the MiG-21 are phased out. The timing of the announcement coincides with the retirement of the IAF’s last two MiG-21 squadrons, scheduled for September 26.
Separately, sources have confirmed that a deal with General Electric (GE) for 113 F-404 engines, which power the Tejas Mk-1A, has also been finalised. An official announcement on that agreement is expected soon.
The first Tejas jets, meaning “brilliance” in Hindi, were commissioned into the air force in 2016, with the latest commissioning for the fourth-generation version of the fighter, the Mk-1A.
India, one of the world’s largest arms importers, has made the modernisation of its forces a top priority, and made repeated pushes to boost local arms production. The Ministry of Defence said it had “signed a contract with Hindustan Aeronautics Limited (HAL) for procurement of 97 Light Combat Aircraft (LCA) Mk1A, including 68 fighters and 29 twin seaters”.
The delivery of these aircraft would commence during 2027-28 and be completed over a period of six years.
New Delhi is eyeing threats from multiple nations, especially neighbouring Pakistan. India fought a a four-day conflict in May, their worst clash since 1999.
In August 2025, Defence Minister Rajnath Singh announced that India was collaborating with a French company to develop and manufacture fighter jet engines domestically.
This decade, India has opened an expansive helicopter factory, launched its first domestically made aircraft carrier, warships, and submarines, and conducted a successful long-range hypersonic missile test.
India’s latest test was of an Agni-Prime missile with a 2,000 kilometre (1,242 mile) range on Wednesday — this time fitted onto a special railway-based system.
India is scheduled to hold a flypast ceremony at a major air force base in Chandigarh on Friday, marking the final flight of its Soviet-era MiG-21s, which have been in use since the 1960s.
India also signed a multi-billion-dollar deal in April to purchase 26 Rafale fighter jets from France’s Dassault Aviation.
They will join the 36 Rafale fighters that have already been acquired.
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