Hindustan Aeronautics Limited (HAL) has secured a landmark ₹62,370 crore contract from the Ministry of Defence to supply 97 Tejas Mk-1A fighter aircraft to the Indian Air Force (IAF), taking its total order book to an unprecedented ₹2.7 lakh crore. The agreement, finalized on September 25, 2025, underscores the Indian government’s focus on bolstering indigenous defense production and achieving self-reliance in military aviation.
The latest contract includes 68 single-seat fighters and 29 twin-seat trainer aircraft, with deliveries expected to commence in 2027 and continue over the next six years. The Tejas Mk-1A is an indigenously developed, fourth-generation, multi-role combat aircraft featuring advanced technologies such as the UTTAM Active Electronically Scanned Array (AESA) radar, the Swayam Raksha Kavach electronic warfare suite, and a high degree of modularity for future upgrades. More than 64% of the aircraft’s components are sourced from domestic suppliers, aligning with the government’s ‘Atmanirbhar Bharat’ initiative.
The Tejas programme, initiated in the 1980s, has long been considered India’s flagship effort in developing a homegrown fighter aircraft. HAL, as the nodal agency for design, production, and assembly, has overcome decades of developmental challenges to deliver a platform capable of complementing India’s modern air force. The Mk-1A variant, in particular, has been designed to incorporate improved avionics, radar systems, and weapons integration, making it a vital asset for India’s defense capabilities.
This order adds to a previous 2021 contract for 83 Tejas Mk-1A aircraft, highlighting the IAF’s commitment to phasing out older aircraft and modernizing its fleet with domestically produced platforms. Officials estimate that the new contract will generate around 11,750 jobs annually over the next six years, enhancing India’s defense manufacturing ecosystem and supporting ancillary industries.
HAL’s stock responded positively to the announcement, reflecting market confidence in the company’s expanded order book and long-term production prospects. The company, a key public sector enterprise under the Ministry of Defence, plays a central role in India’s strategic push to reduce reliance on foreign defense imports while maintaining operational readiness for its armed forces.
Defense analysts note that the Tejas Mk-1A deal not only strengthens the IAF’s capabilities but also has wider implications for India’s position in the global defense sector. By demonstrating the ability to design, manufacture, and deliver a modern fighter aircraft at scale, India can enhance its credibility as a defense exporter and attract international partnerships.
Beyond military strategy, the deal is expected to have substantial economic benefits. The production of Tejas jets involves collaboration with numerous domestic vendors, boosting local industries, promoting technology transfers, and supporting skill development in aerospace engineering. The contract also aligns with the government’s vision of establishing India as a global hub for advanced defense manufacturing.
HAL’s ₹62,370 crore Tejas Mk-1A order reinforces HAL’s role as the backbone of indigenous fighter production, strengthens the operational capacity of the IAF, and signals a decisive step toward self-reliance in defense technology.
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