August 20,2025 – The Government of India has cleared the acquisition of 97 additional Light Combat Aircraft (LCA) Tejas Mk 1A for the Indian Air Force in a deal valued at ₹62,000 crore. The order is among the largest indigenous defence procurement projects sanctioned in recent years.
The aircraft will be manufactured by Hindustan Aeronautics Limited (HAL) under the “Make in India” and Atmanirbhar Bharat programmes. The Tejas Mk 1A is equipped with advanced avionics, active electronically scanned array (AESA) radar, and an electronic warfare suite, with more than 65 per cent indigenous content.
The decision comes as the Indian Air Force prepares to phase out its ageing MiG-21 Bison fleet, which is scheduled to retire by September 2025. The Tejas Mk 1A will gradually replace the Soviet-era aircraft, strengthening India’s frontline fighter capability.
The first squadron of Tejas Mk 1A jets will be designated as “Cobra” and is expected to be operational soon, marking the formal induction of the aircraft into service. Officials stated that the move will significantly enhance operational readiness while boosting domestic aerospace manufacturing.
Following the announcement, shares of HAL and other defence companies witnessed gains of up to 3.5 per cent on the stock market, reflecting investor confidence in the sector. The deal is seen as a major boost to India’s defence industry, creating fresh opportunities for domestic suppliers and supporting employment in the high-technology sector.
The Tejas programme has been under development for decades and represents India’s efforts to build an indigenous fighter aircraft to reduce dependence on imports. With this latest order, the total number of Tejas Mk 1A jets on order rises above 180, securing production lines at HAL well into the next decade.
