India has signed a landmark $7 billion Tejas Mk1A contract with Hindustan Aeronautics Limited (HAL) to procure 97 fighter jets for the Indian Air Force (IAF). Deliveries will start in 2027-28 and continue over six years.
The Ministry of Defence has entered into a ₹62,370 crore (which is equivalent to $7.03 billion) main contract with Hindustan Aeronautics Limited (HAL) to procure 97 Tejas Mk1A Fighter Aircraft for the Indian Air Force (IAF). The aircraft will be delivered between 2027 and 28 and for a period of six years thereafter.https://hal-india.co.in/

This new order consists of 68 single-seat fighters and 29 twin-seater trainer aircraft and comes on the back of the 2021 agreement for 83 Tejas jets, which is still in progress. While HAL’s order book stack may be increasing, the concerns of delayed production remain, particularly in connection with IAF’s operational requirement.
Indigenous Upgrades Under the Tejas Mk1A Contract
Tejas Mk1A is a fully indigenous design and development, but it does take on a US-origin General Electric F404 Engine. The government claims the version has greater than 64% indigenous content owing to the integration of UTTAM AESA Radar, Swayam Raksha Kavach self-protection suite, new actuators, and more than 60 other components designed and manufactured in India. The program transforms the indigenous development of India’s aerospace ecosystem and involves over 100 Indian companies to support direct and indirect employment of around 11,750 positions per annum throughout the contract period.
MiG-21 Retirement and Fleet Challenges

The deal brings hope a day before India formally places its MiG-21 fighter jets into retirement after more than 60 years of service with the IAF since their entry into service in 1963. With the impending retirement, the IAF’s strength will drop to 29 squadrons (much less than the authorized strength of 42 squadrons), along with the added urgency portrayed by older fleets, such as Jaguar, Mirage-2000, and MiG-29UPG.
Regional Air Power Balance
India’s regional security environment reinforces the need. Pakistan has about 25 squadrons and China has approximately 66 squadrons, including next-generation and even sixth-generation aircraft. The IAF continues to rely on its 250+ Sukhoi-30MKI fighter jets, complemented with high-performance Rafale fighter jets from Dassault Aviation.
Larger orders of Tejas would therefore be an important step in modernizing Indian air power, minimizing imports, and addressing the growing capability gap in the region.
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