India’s Cabinet Committee on Security has granted final approval for a ₹62,000-crore deal to procure 97 additional LCA Tejas Mk 1A fighter jets from Hindustan Aeronautics Limited, marking the second order of the upgraded indigenous aircraft following the earlier ₹36,400-crore commitment for 83 jets, and bringing the total Mk 1A order to 180 units.
Developed by the Aeronautical Development Agency and manufactured by HAL, the Tejas Mk 1A features advanced avionics, an AESA radar, electronic warfare capabilities, and beyond-visual-range missile integration. The jets are expected to have over 65% Indian content, reinforcing India’s “Make in India” and “Atmanirbhar Bharat” goals.
While HAL has faced delays principally due to lagging deliveries of the GE F404-IN20 engines, production is now ramping up. The first of the new batch of Mk 1A jets is slated for delivery by the end of fiscal 2025–26, with six already completed and flying on interim engines. GE has pledged to deliver two engines per month starting August 2025.
The IAF, currently operating with a depleted fleet as the ageing MiG-21s prepare to retire, stands to gain from this expansion. The injection of Tejas Mk 1A jets will help counteract the decline in squadron strength and modernize India’s combat air capabilities. The announcement also sent ripples across India’s defense sector, with HAL and allied stocks rising as investors welcomed the boost in long-term revenue visibility.
