India signs $7.5 bn Tejas Mk1A fighter jet deal as MiG-21 bows out after 6 decades of service
September 25, 2025
India’s Ministry of Defence (MoD) on 25 September signed a contract with state-owned Hindustan Aeronautics Limited (HAL) for the purchase of 97 Light Combat Aircraft (LCA) Tejas Mk1A jets worth ₹624 billion ($7.5 billion).
The deal, finalised in New Delhi under the ‘Buy (India-IDDM)’ category, marks the single largest order yet for India’s homegrown fighter programme.
MoD signed a contract with @HALHQBLR for 97 LCA Mk1A aircraft (68 Fighters & 29 Twin Seaters) with associated equipment for the IAF at Rs 62,370 Cr (excl. taxes) under Buy (India-IDDM), today in New Delhi. The advanced LCA Mk1A integrates UTTAM AESA #Radar, Swayam Raksha Kavach &… pic.twitter.com/Bwm8WlsITq
— Ministry of Defence, Government of India (@SpokespersonMoD) September 25, 2025
The timing of the announcement is striking. The contract was inked on the eve of the MiG-21’s formal retirement, a workhorse fighter that has defended India’s skies for over six decades but long outlived its design life.
For the Indian Air Force (IAF), the shift symbolises nothing less than a handover from a Soviet-era legacy to a distinctly Indian future.
Tejas Mk1A fighter jet deliveries to begin in 2027 under new order
Under the new deal, HAL will deliver 68 single-seat fighters and 29 twin-seat trainers, beginning in 2027–28 and completing all deliveries within six years.
This follows the 2021 order for 83 Mk1A jets worth ₹470 billion ($5.6 billion), deliveries of which are just starting.
Together, the two orders will give the IAF nearly 180 Mk1A fighters by the early 2030s, making Tejas the backbone of several frontline squadrons.
The urgency is evident: the IAF has repeatedly flagged its squadron strength falling to 29 active squadrons, against a sanctioned strength of 42. The drawdown of MiG-21s, MiG-23s and MiG-27s has left gaping holes.
Air Chief Marshal A. P. Singh recently warned that the IAF is “very badly off in numbers” and must induct at least 40 new fighters annually to stay combat-ready.
What makes Tejas Mk1A different?
The Mk1A variant of Tejas is significantly more capable than the initial Mk1 models that entered service from 2016. Enhancements include:
- UTTAM AESA radar: An indigenous Gallium Nitride (GaN)-based Active Electronically Scanned Array radar, developed by DRDO’s Electronics and Radar Development Establishment (LRDE) in collaboration with BEL and HAL. With 912 transmit-receive modules, it can track multiple targets at once, resist jamming, and has a detection range of about 150 km against fighter-sized targets. From the 41st Mk1A onward, it replaces the imported Israeli EL/M-2052 radar.
- Swayam Raksha Kavach electronic warfare suite: A fully indigenous self-protection system for jamming and countermeasures.
- Indigenous actuators: Locally built control surface actuators, further reducing foreign dependence.
- Weapons integration: Certified to fire the indigenous Astra beyond-visual-range (BVR) missile and advanced short-range missiles. In March 2025, the Tejas Mk1 prototype successfully test-fired Astra off the Odisha coast.
- Indigenous content: Over 64% indigenous material, with 67 new locally sourced components compared to the 2021 order.
The aircraft retains the General Electric F404-GE-IN20 turbofan engine, producing about 85 kN of thrust. HAL is also set to contract 113 more engines from GE, valued at roughly $1 billion, to power the new fleet.
India retires MiG-21 as Tejas order marks generational fighter shift
The retirement of the MiG-21, once nicknamed the “flying coffin” for its poor safety record in later years, underscores the urgency of replacing ageing Soviet designs with modern platforms.
Conceived in the 1980s as the MiG-21’s successor, the Tejas has been decades in the making. After its maiden flight in 2001 and years of delays, it received Initial Operational Clearance in 2013 and Final Operational Clearance in 2019.
While criticised for its slow gestation, Tejas is now emerging as the very platform it was designed to be: a lightweight, multirole fighter tailored for India’s defence needs, yet competitive with international peers.
HAL’s Tejas production boost and growing role of India’s private sector
The new order also highlights the transformation of Hindustan Aeronautics Limited. Long accused of delays and inefficiencies, HAL has built credibility by scaling up production, outsourcing to private partners, and ensuring quality.
- Private participation: On 30 May 2025, VEM Technologies handed over the first centre fuselage assembly for Tejas Mk1A — the first time a major sub-assembly has been manufactured outside HAL. Other private firms, such as L&T, Tata Advanced Systems Ltd (TASL), Alpha Tocol, and Lakshmi Machine Works (LMW), are producing wings, fuel tanks, pylons, fins, rudders, and intakes.
- Production lines: HAL has expanded to three Tejas production lines — two in Bengaluru in southern India and a new one in Nashik in western India, inaugurated in April 2023, which alone will build eight jets per year. A fourth line is being established through private partnerships. With this, HAL aims to scale annual production to 24–30 aircraft.
- Vendor ecosystem: The Mk1A project involves nearly 105 Indian suppliers, including 2,448 MSMEs, sustaining 11,750 jobs annually for six years.
In the past three years, HAL has placed orders worth ₹138 billion ($1.7 billion) with Indian vendors, further boosting self-reliance.
Strategic and economic impact of India’s $7.5 bn Tejas Mk1A order
The contract does more than equip the IAF with urgently needed fighters.
- Supports self-reliance: Reduces dependence on imports and builds indigenous aerospace capacity.
- Creates jobs: Nearly 70,000 direct and indirect jobs over six years.
- Spurs exports: With Tejas being eyed by some Southeast Asian nations and countries such as Argentina and Egypt, HAL hopes the Mk1A’s advanced features will bolster export prospects.
- Bridges the gap: The Mk1A will hold the line until Tejas Mk2 and the 5th-generation Advanced Medium Combat Aircraft (AMCA) enter service in the 2030s.
For the IAF, the challenge remains urgent: to rebuild squadron strength and modernise its fleet quickly. For HAL, the test lies in delivering the 83 fighters already contracted in 2021, while simultaneously starting production of the additional 97 under the new deal.
