New Delhi: In a massive boost to India’s “Aatmanirbhar Bharat” (self-reliant India) initiative, the Ministry of Defence on Thursday officially signed a contract worth Rs 62,370 crore with Hindustan Aeronautics Ltd. (HAL) for the procurement of 97 Tejas Mark-1A fighter jets for the Indian Air Force (IAF). The deal is one of the largest indigenous defense contracts in the country’s history.
The acquisition, made under the ‘Buy (India-IDDM)’ category of the Defence Acquisition Procedure 2020, includes 68 single-seat fighter variants and 29 twin-seat trainers, along with associated equipment. According to a Ministry of Defence statement, deliveries are slated to begin during 2027-28 and will be completed over a six-year period.
Defence Minister Rajnath Singh hailed the agreement, stating that the supply of these aircraft would enhance the operational capability of the IAF and strengthen the country’s defense preparedness.
A Commitment to Indigenization and ‘Made in India’
The new Tejas Mark-1A jets will feature an indigenous content of over 64%, with 67 additional items being incorporated compared to the previous contract for 83 jets signed in January 2021. The updated aircraft will integrate advanced, indigenously developed systems such as the UTTAM Active Electronically Scanned Array (AESA) Radar, the Swayam Raksha Kavach self-protection suite, and control surface actuators. This move is expected to give a significant push to the domestic aerospace ecosystem.
The project is supported by a robust network of nearly 105 Indian companies directly engaged in manufacturing detailed components. The production phase is projected to generate approximately 11,750 direct and indirect jobs per year for the six-year duration of the contract.
Delays Plague Previous Tejas Contract
Despite this major new deal, concerns remain about delays in the delivery of the 83 Tejas Mark-1A jets from the earlier contract signed in 2021. The IAF has not yet received a single jet from this previous order.
Earlier this year, Air Force Chief Amar Preet Singh publicly expressed his displeasure over the consistent delays. The delays have been attributed to various factors, including issues with the supply of engines from US tech giant General Electric (GE) Aerospace. While HAL has recently received the third GE 404 engine for the LCA Mk1A, the company has consistently missed its own deadlines.
The IAF, which is facing a significant shortfall in its fighter squadron strength, has been vocal about its need for the jets to be delivered on time to meet its operational requirements. With the retirement of the iconic MiG-21 fleet, the IAF’s fighter strength is set to drop to a historic low of 29 squadrons against an authorized strength of 42.
IAF Considers Increasing Fighter Squadron Strength
In a related development, defense sources have indicated that the IAF is considering increasing its offensive strength beyond the current mandated strength of 42 fighter squadrons. An internal review has reportedly concluded that, given the geopolitical situation in the South Asian region, the current strength is not sufficient.
“According to an internal review, the mandated strength of 42 is not enough, and there is a possibility that the number may see a spike in the coming future,” a defense source was quoted as saying. The new deal for the Tejas Mark-1A jets, along with the previous one, brings the total order for the indigenous fighter to 180 aircraft, with the possibility of more orders in the future.

