In a monumental step toward strengthening India’s air defense capabilities and promoting indigenous manufacturing, the Indian government has greenlit a Rs 62,000 crore ($7.4 billion) deal to acquire 97 Light Combat Aircraft (LCA) Tejas Mark 1A fighter jets for the Indian Air Force (IAF). The decision, finalized on August 19, 2025, underscores India’s commitment to its “Make in India” and “Aatmanirbhar Bharat” initiatives, positioning the Tejas as a cornerstone of the nation’s defense strategy.

Empowering the Indian Air Force

This contract, awarded to Hindustan Aeronautics Limited (HAL), follows a 2021 order for 83 LCA Mark 1A jets worth Rs 48,000 crore, bringing the total order to 180 aircraft. The Tejas Mark 1A, developed by the Aeronautical Development Agency (ADA) and manufactured by HAL, is a state-of-the-art multirole fighter equipped with advanced features like Active Electronically Scanned Array (AESA) radar, electronic warfare systems, self-protection jammers, and beyond-visual-range (BVR) missile capabilities. The aircraft will replace the IAF’s aging MiG-21 fleet, set to be retired soon, ensuring a modernized and robust air force.

With over 65% indigenous content, the LCA Tejas Mark 1A is a testament to India’s growing expertise in aerospace technology. The deal is expected to generate significant opportunities for over 500 Indian companies, including micro, small, and medium enterprises (MSMEs), fostering economic growth and job creation across the defense sector.

Scaling Up Production

HAL has significantly expanded its production infrastructure to meet the IAF’s demands. The company operates two production lines in Bengaluru, capable of producing 16 jets annually, and a third facility in Nashik, inaugurated in 2023, adding capacity for eight additional jets per year. By 2026, HAL aims to ramp up production to 24 jets annually. Despite these efforts, concerns persist about delivery timelines, with delays in the initial 83-jet order attributed to supply chain challenges and pending certifications for the General Electric F404 engines powering the Tejas.

Prime Minister Narendra Modi has championed the Tejas program, emphasizing its role in India’s self-reliance mission. His historic sortie in the Tejas trainer variant—the first by an Indian Prime Minister—highlighted the government’s unwavering support for HAL and indigenous defense projects.

Opportunities and Challenges

The Rs 62,000 crore deal is a game-changer for India’s aerospace industry, encouraging private-sector participation from companies like Larsen & Toubro and Dynamatic Technologies. However, the program faces hurdles. Critics have flagged technical gaps, such as the absence of a Missile Approach Warning System (MAWS), and raised concerns about HAL’s production efficiency. Some experts advocate prioritizing the LCA Mark 2, which promises enhanced range, payload, and performance, over additional Mark 1A orders. Dependence on foreign engines also remains a sticking point, with calls for expedited development of indigenous alternatives or technology transfers from global partners.

Global Aspirations and Export Potential

The Tejas program is poised for growth, with plans for over 200 LCA Mark 2 jets and a similar number of fifth-generation Advanced Medium Combat Aircraft (AMCA) in the pipeline. Internationally, the Tejas has garnered attention from nations like Argentina, Nigeria, Egypt, and the Philippines, who see it as a cost-effective alternative to fighters like the F-16 and Gripen. However, HAL’s ability to balance domestic and export commitments will depend on overcoming production and supply chain challenges.

A Milestone for Aatmanirbhar Bharat

The approval of this massive deal for 97 LCA Tejas Mark 1A jets marks a defining moment for India’s defense and aerospace sectors. By modernizing the IAF and reducing reliance on foreign imports, the Tejas program embodies India’s vision of self-reliance. Its success will hinge on HAL’s ability to address technical and logistical challenges, but the broader impact—driving innovation, empowering MSMEs, and elevating India’s global aerospace standing—is undeniable. The Tejas is not just a fighter jet; it’s a symbol of India’s ambition to soar to new heights in defense manufacturing.

Disclaimer: This article is based on the latest available information. For real-time updates, readers are encouraged to refer to credible news sources.