India Clears ₹62,000 Crore Deal for 97 Tejas Mk1A Jets
- MGMMTeam
- Aug 20
- 3 min read
In a landmark decision, the Government of India has given its final approval to procure 97 additional Tejas Mk1A Light Combat Aircraft (LCA) from Hindustan Aeronautics Limited (HAL) at a cost of ₹62,000 crore. This move represents a significant boost for the Indian Air Force (IAF) and reinforces the government’s long-standing vision of Aatmanirbhar Bharat and Make in India.
The new order comes on the heels of an earlier contract for 83 Tejas Mk1A jets signed in 2021 for ₹36,400 crore. With this latest approval, India’s indigenous fighter fleet is expected to grow substantially, providing both strategic strength to the IAF and fresh momentum to the domestic defence manufacturing sector.

Strengthening the Indian Air Force
The Tejas Mk1A fleet will play a pivotal role in filling the gaps created by the retirement of India’s aging MiG-21 squadrons, which are set to be phased out by September 2025. With the induction of these 97 additional jets, the IAF’s combat fleet will move closer to the sanctioned strength of 42 squadrons, a long-pending requirement to effectively address both eastern and western front threats.
HAL has been ramping up its production capacity to deliver 24 aircraft per year from its Bengaluru and Nashik plants. Once completed, the Indian Air Force will possess a total of 180 Tejas Mk1A fighters—enough to field several frontline squadrons. The government has also made clear that these jets are not just a replacement for older aircraft but will form the backbone of India’s indigenous air power for decades.
Technology and Industrial Ecosystem
The Tejas Mk1A represents a significant leap over earlier variants, boasting state-of-the-art avionics, advanced radar systems, and modern electronic warfare capabilities. While more than 65 percent of the aircraft is manufactured using indigenous components, HAL has opted to integrate Israeli radar systems in place of DRDO’s indigenous Uttam AESA radar, sparking debate about balancing operational needs with the long-term goal of full self-reliance.
This massive procurement also serves as a huge stimulus for India’s domestic industrial base. Hundreds of small and medium enterprises are expected to benefit from the project, supplying critical components and subsystems. Such participation ensures that the economic benefits of this deal extend beyond HAL, fostering a stronger defence ecosystem across the country.
Global Collaborations and Engine Supply
India’s indigenous push is being complemented by international cooperation. U.S. engine manufacturer GE has committed to increasing the supply of F404 engines, which power the Tejas Mk1A, with a plan to deliver up to two engines per month by 2026. This step is crucial for maintaining production timelines and ensuring the IAF receives aircraft at a steady pace.
The deal also comes at a time when India is pursuing other acquisitions, including Rafale fighter jets and advanced missile systems, indicating a balanced strategy of indigenous production and selective imports to modernize its armed forces.
Looking Ahead: Tejas Mk2 and Beyond
While the Mk1A will serve as a robust backbone of the fleet, HAL and the Defence Research and Development Organisation (DRDO) are already advancing the Tejas Mk2 program. The first prototype of the Mk2 is expected by late 2025, with flight tests scheduled for early 2026. Induction is planned around 2028–29, offering the IAF a medium-weight fighter with far greater range, payload capacity, and technological sophistication.
Parallelly, India is also working on the Advanced Medium Combat Aircraft (AMCA), a fifth-generation stealth fighter project. These initiatives, combined with the Tejas Mk1A expansion, signal India’s determination to become a global hub for cutting-edge defence aviation.
Conclusion
The approval of the ₹62,000 crore deal for 97 Tejas Mk1A jets is more than a defence contract—it is a declaration of India’s intent to chart its own course in aerospace innovation and military strength. By replacing aging Soviet-era jets with homegrown aircraft, India not only strengthens its combat readiness but also invests in its own industrial and technological future.
While challenges remain, especially in balancing indigenous innovation with foreign collaboration, the trajectory is clear: India is steadily building the capacity to stand among the world’s leading defence producers. The Tejas, once dismissed as a delayed and underpowered project, has now become a symbol of India’s resilience and ambition.
(Sources: India Today, NDTV, News18)
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