India Approves $7.4 Billion HAL Tejas Mk1A Fighter Jet Deal
India’s Cabinet Committee on Security approved a landmark deal for 97 new HAL-built Tejas Mk1A light combat aircraft, valued at roughly ₹62,000 crore (about $7.4 billion) on August 19, 2025. This order – in addition to an earlier 83-jet Mk1A purchase – will nearly double India’s indigenous fighter fleet. The Tejas Mk1A is a more advanced variant of the Light Combat Aircraft, and Hindustan Aeronautics Limited (HAL) will manufacture all airframes and equipment. The second Mk1A order underscores Prime Minister Modi’s Make-in-India push and is seen as a “major milestone” for India’s airpower.
Delivery of the new Tejas Mk1As is planned to start in 2025, once the earlier engine supply issues are resolved. The first six jets could be delivered in the fiscal year 2025–26. In total, HAL aims to deliver all 180 ordered Mk1A jets (83 earlier, 97 new) by the early 2030s. Production lines have been expanded, including the addition of new fuselage assembly by private partners, to boost output for the Mk1A programme. The Light Combat Aircraft Division at HAL now operates multiple assembly lines (in Bengaluru and Nashik) and is ramping up to meet the IAF’s urgent needs for fresh fighters.
The Tejas Mk1A incorporates several important upgrades over the baseline Tejas Mk1. It has an active electronically scanned array (AESA) radar, improved cockpit displays, a modern mission computer and advanced electronic warfare systems. It can also be equipped with an in-flight refueling probe and new weapons, such as the BrahMos-NG missile. These improvements make it easier to maintain and more capable in combat. Mk1A jets will have roughly 60–65% indigenous content (up from about 50% in the original Tejas).
Acquiring 97 Tejas Mk1As will significantly strengthen India’s defense preparedness. The IAF has retired dozens of aging MiG-21 fighters in recent years, and the new Tejas fleet will help fill that gap. Defence Minister Rajnath Singh hailed the order as proof of India’s growing indigenous capabilities, saying HAL had won “orders worth Rs 62,000 crore for 97 Tejas fighter aircraft” and calling Tejas “a great example of India’s indigenous defence capabilities.” The $7.4B Tejas Mk1A deal not only boosts IAF squadron strength but also showcases the success of India’s Make-in-India strategy in aerospace.