HAL signs $7billion Tejas fighter jet deal with Indian Air Force

The Indian Ministry of Defence (MoD) (headquartered in New Delhi) and Hindustan Aeronautics Limited (HAL), the state warplane maker, have signed a contract worth $7 billion (₹66,500 crore) for the procurement of 97 Tejas Mk-1A light combat aircraft by the Indian Air Force (IAF). The agreement was signed on 25 September 2025, just a day before the official retirement of India’s last MiG-21 squadrons.

Under this accord, deliveries of the state-made war aircraft will commence in fiscal 2027–28 and be completed in six years later. The deal is a part of India’s push for self-reliance, as it falls under the aegis of what the government has called “Aatmanirbhar Bhaarat” (which can be translated to “a Self-sufficient India”). It has been claimed that the assembling of Tejas has led to the utilization of over 64 % indigenous materials, and this historic deal aims to invigorate the domestic aerospace supply chain.

Details of the $7billion (₹66,500 crore) Tejas deal

HAL’s contract with the MoD comprises 68 single-seat fighter versions and 29 twin-seat trainer variants, along with associated systems, spares, and support infrastructure. Nearly 105 Indian vendors are expected to be part of the supply chain that will encompass the delivery of the aircraft to the Indian Air Force. Further, the deal is also expected to generate approximately 11,750 jobs (direct and indirect) annually over the contract period.

According to HAL, the LCA Tejas is “a 4.5 generation, all-weather and multi-role fighter aircraft. The aircraft is designed to be a multi-role aircraft capable of taking up offensive air support, close combat, and ground attack role at ease. It is also designed to undertake Ground Maritime Operations“. The different versions of Tejas under production are:

• Single-seater fighter for Air Force
• Twin Seater trainer aircraft for Air Force
• Single-seater fighter for Navy
• Twin Seater trainer version for Navy

The most advanced version of the LCA Tejas jeets is the LCA Mk1A. It is equipped with the following technologies:

• Advanced Radio Altimeter
• AESA Radar
• Combined Interrogator and Transponder (CIT)
• Digital Map Generator (DMG)
• EW suite consisting of radar warning and self-protection jamming
• Smart Multi-function Displays (SMFD)

Let’s take a look at some of the other features of the LCA Tejas.

The new order is an extension to the contract for 83 Tejas Mk-1A jets (73 fighters + 10 trainers) [valued at ₹46,898 crore] that was signed in 2021. The New Indian Express reported that “Once this new order is completed in the stipulated 15 years, the IAF will have 40 LCA, over 180 LCA Mark-1A and at least 120 LCA Mark-2 planes.”

The Tejas, which is set to serve as India’s replacement for the MiG-21 – the aircraft type that has the rather biting distinction of being  “a flying coffin”, a distinction it shares with the Consolidated B-24 heavy bomber. The Tejas entered service with the Indian Air Force in July 2016, with No. 45 Squadron. The first IAF unit to operate it named the aircraft “Flying Daggers”. The Indian Air Force initially placed an order for 40 Tejas Mk 1 jets, of which 35 have been delivered so far.

How will the recent Tejas deal shape the Indian Air Force?

The Ministry of Defence iterated the position of Tejas as a beacon of hope for the self-sufficiency of India:

“The advanced LCA (Light Combat Aircraft) Mk1A integrates Uttam active electronically steered radar (AESA) Radar, Swayam Raksha Kavach and control actuators, with 64%+ indigenous content and 67 new indigenous items….Supported by 105 suppliers, the project will generate 11,750 jobs per year over six years. Deliveries will start in 2027-28, boosting IAF capability, Atmanirbhar Bharat (self reliance) and India’s defence preparedness.”

Mod’s buoyancy on the recent procurement of the deal comes a month after the Cabinet Committee on Security (CCS) approved the production of the an upgraded variant Tejas Mk1A. This aircraft type is expected to help offset the decline in the Indian Air Force’s combat squadron strength. This clearance followed an earlier approval granted by the Defence Acquisition Council (DAC) in November 2023.

This latest procurement of 97 Tejas aircraft comes at a time when the IAF’s fighter strength is rapidly declining: after all, the last MiG-21 unit, No. 23 Squadron, was phased out yesterday, dropping the total number of active fighter squadrons to below 30.

India’s previous comparable aircraft procurement deals

Past procurement contracts furnish useful benchmarks for timelines, scale and challenges. Below is a comparative table:

These precedents show that major defence deals often span years of negotiation, frequent delays, and require robust vendor management.

HAL’s Chairman & Managing Director, Dr D.K. Sunil, was quoted in TheAsiaLive as having described the event as “a red-letter day” for the indigenous fighter programme:

Despite the claims of “Atmanirbharta” or self-sufficiency, sceptics suggest that HAL’s reliance on imported engines remains a vulnerability. A report published in Reuters hints at this:

“The government signed a deal with HAL in 2021 for 83 such aircraft but delivery of that order has yet to begin, as the warplane maker blamed GE for being slow in providing the engines.  GE has said the delay followed challenges in restarting the production line and re-engaging global supply chains for the engine after the COVID-19 pandemic. It delivered the first engine for the Mk-1A fighter in March this year and Indian officials have said they expect production and deliveries to stabilise in the current fiscal year.”

However, the avionics, radar, weapons, and other systems are manufactured in India. ffsets this concern to a large extent. Let’s take a llok at the strengths of the Indian Air Force, and how the procurement is likely to change its lanscape.