India signs $7.5B contract with HAL for 97 Tejas Mk1A jets

India’s Ministry of Defence (MoD) has signed a landmark contract with Hindustan Aeronautics Limited (HAL) for the supply of 97 Light Combat Aircraft (LCA) Tejas Mk1A to the Indian Air Force (IAF). 

The deal, valued at Rs 62,370 crore (around $7.5 billion), was signed in New Delhi on September 25, 2025. It covers 68 single-seat fighters and 29 twin-seat trainers, along with associated equipment. 

Tejas Mk1A: Indigenous upgrades 

The MoD said the Tejas Mk1A is an upgraded variant produced under the “Buy (India-IDDM)” procurement category. It incorporates new systems, including the indigenous UTTAM AESA radar, the Swayam Raksha Kavach electronic warfare suite, and improved flight control actuators.  

The ministry added that the new standard also includes 67 additional indigenous items, thereby increasing local content to above 64%. 

Officials stated that the project will be supported by 105 Indian suppliers and is expected to generate an estimated 11,750 jobs annually over the next six years. Deliveries are scheduled to begin in 2027 or 2028. The aircraft are part of India’s wider Atmanirbhar Bharat (self-reliant India) initiative aimed at reducing dependence on foreign defence suppliers. 

The latest deal follows a 2021 contract for 83 Tejas Mk1A aircraft (73 fighters and 10 twin-seat trainers), which was the first large-scale production order for the Mk1A variant. With this new batch, the IAF’s total commitment rises to more than 180 aircraft, making the Tejas one of the largest indigenous fighter programs in India’s history. 

Operational track record and milestones 

The Tejas has steadily matured in service. In 2023, IAF Tejas fighters participated in international exercises abroad for the first time. The same year, the naval variant successfully landed on India’s new aircraft carrier, INS Vikrant, marking a significant step for the program’s carrier-borne ambitions. The type also suffered its first crash in 2024, after which the IAF pledged further safety improvements. 

A wider modernization drive for the IAF

The Tejas order comes as the IAF faces the sharpest decline in its operational strength. The service currently operates 31 fighter squadrons, each with 16 to 18 aircraft, compared to the sanctioned strength of 42.5 squadrons needed to meet potential threats from regional adversaries such as Pakistan and China.

In parallel, the service is pursuing a potential deal for 114 Rafale fighters to be partly assembled in India. This would add to the 36 Rafales already in IAF service and the 26 naval Rafale M jets signed earlier in 2025.  

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Dassault Aviation has also partnered with Tata Advanced Systems to manufacture Rafale fuselages in Hyderabad. The post India signs $7.5B contract with HAL for 97 Tejas Mk1A jets appeared first on AeroTime.

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