India Clears ₹62,000 Crore Deal for 97 More Tejas Mk-1A Fighters

New Delhi, August 2025 — In a major step for India’s military modernisation, the Union Government has approved the procurement of 97 additional LCA Tejas Mk-1A fighter jets for the Indian Air Force (IAF). The deal, worth ₹62,000 crore ($7.1 billion), is one of the largest-ever indigenous fighter aircraft orders and will significantly enhance the IAF’s combat strength while ensuring long-term stability for India’s aerospace industry.

Expanding the Tejas Fleet

The Tejas Mk-1A, developed by the Aeronautical Development Agency (ADA) and manufactured by Hindustan Aeronautics Limited (HAL), is an advanced variant of India’s Light Combat Aircraft. It features a state-of-the-art AESA radar, beyond-visual-range missile capability, electronic warfare systems, and mid-air refuelling, making it a versatile fourth-plus generation fighter.

This new order comes in addition to the 83 Tejas Mk-1A fighters contracted in 2021. With the latest clearance, the IAF’s total order book for the Mk-1A rises to 180 aircraft, ensuring multiple squadrons are equipped with modern fighters to replace ageing MiG-21s and Jaguars.

Production and Delivery

HAL has been expanding its production capacity at Bengaluru and Nashik to meet rising demand. With the new order, the company will sustain a manufacturing pace of 24–30 aircraft annually, ensuring deliveries stretch well into the 2030s. The first deliveries from the 2021 contract have already begun.

The only potential challenge lies in the supply rate of the GE F404 engines, which power the Mk-1A. While HAL is ready to scale up production, the pace of engine deliveries from the United States will play a crucial role in keeping the manufacturing schedule on track.

Economic and Strategic Impact

The project will provide a major boost to the domestic aerospace ecosystem, with hundreds of local companies in the supply chain and thousands of jobs in design, assembly, and maintenance. It will also support India’s growing reputation as a manufacturer of reliable, modern combat aircraft, with interest already coming from countries in Asia, Africa, and Latin America.

For the IAF, the Tejas Mk-1A will fill a critical gap at a time when squadron strength is below the sanctioned 42 units. Its induction ensures flexibility across the western and northern borders, providing a cost-effective yet modern platform until the more advanced LCA Mk-2 and AMCA enter service in the coming years.

The clearance of this ₹62,000 crore deal for 97 Tejas Mk-1A jets is a decisive moment for the Indian Air Force. With nearly 180 aircraft now on order, the Tejas will soon become the backbone of India’s fighter fleet. The only hurdle ahead is whether GE can increase the supply rate of F404 engines quickly enough to match HAL’s accelerated production timeline.