In a major push towards indigenous defence capabilities, the Government of India has sanctioned a massive ₹62,000 crore contract for the procurement of 97 Tejas Mark 1A fighter jets. The approval, granted in August 2025 at a high-level meeting, allows Hindustan Aeronautics Limited (HAL) to commence full-scale production for the Indian Air Force (IAF)—signalling the country’s largest-ever indigenous fighter jet order.
GOI Approved ₹62000 Crore Deal for 97 Tejas Mark 1A Jets
A Boost for “Make in India” & Indigenous Manufacturing
This is the second substantial order for the Tejas Mark 1A. Previously, 83 jets were ordered in February 2021 at a cost of ₹48,000 crore. With this new order, the total Tejas Mark 1A jets on order rises to 180, aimed squarely at modernising the IAF and replacing the ageing MiG-21 fleet, which is set to retire imminently.
The jets feature more than 65% indigenous content, leveraging advanced systems sourced through over 500 local firms. Components and subassemblies from small and medium enterprises will see significant industrial participation, further extending the benefits of the contract beyond HAL into the Indian manufacturing ecosystem.
Key Features of Tejas Mark 1A
- Modern Avionics: Equipped with advanced AESA radar, electronic warfare suites, and air-to-air refuelling capability for enhanced operational flexibility.
- Weapon Systems: 13 hardpoints capable of carrying up to 6.5 tonnes of payload, including state-of-the-art Astra and ASRAAM air-to-air missiles.
- Indigenous Drive: A critical showcase for India’s defence indigenisation push, supporting “Aatmanirbhar Bharat” and “Make in India”.
- Production Targets: HAL plans to ramp up manufacturing to deliver up to 24 jets a year. Deliveries for this latest order are expected between 2025 and 2032, ensuring that IAF’s operational needs are met smoothly.
Economic and Strategic Impact
The ₹62,000 crore deal not only strengthens India’s air defence but is expected to create thousands of jobs and drive investments in defence R&D, manufacturing, and supply chains. Defence experts note that this contract will help the country reduce import dependency and stimulate technological innovation.
HAL, the manufacturing agency, has already begun preparations—with engine deliveries and assembly lines being closely monitored and ramped up. Defence officials report that supply chain issues, particularly engine delivery from GE, are being actively managed, with the expectation that necessary components will arrive as per contract timelines.
The Path Ahead
The delivery of Tejas Mark 1A jets will be crucial in bolstering the IAF’s combat readiness while advancing India’s long-term vision for self-reliance in critical aerospace technologies. With future orders including the Tejas Mark 2 and the Advanced Medium Combat Aircraft (AMCA) on the horizon, India is poised to become a significant global player in indigenous fighter aircraft manufacturing.
The approval of this deal marks a historic milestone for Indian defence—symbolising not just a transaction, but a leap towards technological sovereignty and strategic independence.
India’s ₹62,000 crore investment in Tejas Mark 1A jets represents a pivotal moment for indigenous defence, modern airpower, and the future of Make in India.
