India Signs Rs 62,370 Crore Tejas Jet Deal to Power Up Air Force and Defense Industry
Massive Tejas deal with HAL to boost IAF strength and accelerate India’s defense self-reliance.
The Ministry of Defence finalized a monumental Rs 62,370 crore contract with Hindustan Aeronautics Limited (HAL) to procure 97 Tejas MK-1A Light Combat Aircraft (LCA) for the Indian Air Force (IAF), reinforcing India’s commitment to indigenous defense manufacturing. Approved by the Cabinet Committee on Security (CCS), led by Prime Minister Narendra Modi, over a month ago, the deal includes 68 single-seater fighters and 29 twin-seater variants, with deliveries set to begin in 2027-28 and conclude within six years.
This contract marks the second major Tejas acquisition, following a Rs 48,000 crore deal in February 2021 for 83 MK-1A jets. The new aircraft, boasting over 64 percent indigenous content and incorporating 67 additional homegrown components, feature advanced systems like the Uttam Active Electronically Scanned Array (AESA) Radar and Swayam Raksha Kavach, enhancing India’s Aatmanirbhar Bharat (self-reliant India) initiative. The single-engine MK-1A, designed to replace the IAF’s retiring MiG-21 fleet, is a versatile, multi-role fighter capable of air defense, maritime reconnaissance, and strike missions in high-threat environments.
The project engages 105 Indian companies, generating approximately 11,750 direct and indirect jobs annually over six years, significantly boosting the domestic aerospace ecosystem. Executed under the ‘Buy (India-IDDM)’ category of the Defence Acquisition Procedure 2020, the acquisition aligns with the government’s indigenization drive. With the IAF’s fighter squadrons currently at 31, against an authorized strength of 42, the Tejas MK-1A will bolster operational readiness.
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As the IAF prepares to retire its MiG-21 fleet on September 26, 2025, the Tejas MK-1A, described by the ministry as “the most advanced variant of the indigenously designed and manufactured fighter aircraft,” positions India as a rising force in global defense. This landmark deal not only strengthens national security but also catalyzes economic growth through job creation and industrial innovation.
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