India Signs ₹62,370 Cr Contract for 97 HAL Tejas Mk1A Fighters

India has finalized a landmark ₹62,370 crore (~$7.5 billion) contract with Hindustan Aeronautics Limited (HAL) for the procurement of 97 LCA Tejas Mk1A fighter aircraft. This deal marks one of the largest-ever indigenous defense acquisitions in Indian history and represents a critical step in modernizing the Indian Air Force (IAF) with domestically developed combat platforms.

Massive Indigenous Fighter Order Signals Strategic Shift

On March 12, 2024, India’s Ministry of Defence (MoD) formally signed a contract with state-owned aerospace giant HAL to deliver 97 additional Light Combat Aircraft (LCA) Tejas Mk1A fighters. The agreement follows the earlier order of 83 Tejas Mk1As placed in February 2021 for ₹48,000 crore (~$6.5 billion), bringing the total number of Mk1As on order to 180 units.

The new contract is part of the Indian government’s broader push under the “Atmanirbhar Bharat” (Self-Reliant India) initiative to reduce dependency on foreign military platforms and strengthen domestic defense manufacturing capabilities. With this order, the LCA program becomes one of India’s most significant indigenous defense production efforts.

LCA Tejas Mk1A: Capabilities and Enhancements

The LCA Tejas Mk1A is a significantly upgraded variant over the earlier IOC and FOC versions of the baseline Tejas. Designed as a lightweight multirole fighter optimized for air superiority and ground attack missions within short-to-medium range theaters, the Mk1A incorporates over 40 enhancements based on operational feedback from IAF squadrons.

Key improvements include:

Uttam AESA Radar: The indigenous Uttam Active Electronically Scanned Array radar developed by DRDO is expected to be integrated into later batches. Initial units may use Israel’s EL/M-2052 AESA radar from Elta Systems.
BVR Missile Capability: Integration with advanced Beyond Visual Range missiles such as Astra Mk-I and Derby ER enhances air-to-air lethality.
Electronic Warfare Suite: An advanced self-protection jammer and digital RWR improve survivability against modern threats.
Mid-Air Refueling Probe: Enables extended mission endurance and multirole flexibility.
Improved Maintainability: Enhanced modularity and diagnostics reduce turnaround time between sorties by up to 40% compared to earlier variants.

The aircraft retains its General Electric F404-GE-IN20 engine but future variants may transition to more powerful powerplants such as GE’s F414 under development for the upcoming Tejas Mk2 platform.

Delivery Timeline and Industrial Implications

The first deliveries under this new contract are expected to begin in FY2027–28. HAL is targeting an annual production rate of at least 24 aircraft per year across its Bengaluru and Nashik production lines. The company has already invested significantly in expanding its manufacturing infrastructure—including a second assembly line inaugurated in February 2023—to meet growing demand from both domestic and potential export customers.

This order will sustain HAL’s fighter aircraft division well into the next decade while also supporting hundreds of Tier-2/3 MSMEs involved in supplying components across avionics, composites, hydraulics, landing gear systems, etc. According to MoD estimates shared during Aero India shows in recent years:

Over 75% indigenization is achieved on current LCA configurations by value; efforts are underway to increase this further through local engine components and sensors.
An estimated 50,000 direct/indirect jobs will be supported through this procurement cycle alone.

LCA Program Evolution: From Skepticism to Strategic Asset

The LCA program was initiated in the early 1980s as a replacement for India’s aging MiG-21 fleet. After decades of developmental delays—ranging from engine selection challenges to flight control system maturity—the platform finally entered limited service with No.45 Squadron “Flying Daggers” in July 2016 using IOC-standard aircraft. Full Operational Clearance (FOC) variants followed by late-2019.

The improved Mk1A variant was greenlit after extensive consultations between ADA (Aeronautical Development Agency), HAL, DRDO labs like LRDE/DARE/CABS/GTRE—and frontline IAF operators who had flown early models extensively during peacetime deployments including Exercise Gagan Shakti (2018).

This evolution has turned what was once viewed as an overambitious R&D project into a cornerstone of India’s tactical airpower strategy—especially amid rising tensions along both western (Pakistan) and northern (China) borders where rapid deployment flexibility remains critical.

Tactical Role Within IAF Force Structure

The induction of nearly two full squadrons’ worth of additional Tejas fighters will help offset dwindling numbers caused by MiG-21 retirements—expected to fully phase out by mid-2025—and delayed imports like Rafale follow-ons or Su-30MKI upgrades still pending finalization with Russia or OEMs like Safran/Thales/UAC-Irkut.

LCA units are expected to serve primarily as frontline air defense assets along western sectors while also performing interdiction roles using precision-guided munitions such as SAAW glide bombs or laser-guided bombs via onboard targeting pods like Litening III/IV series.

The aircraft’s low radar cross-section (~0.5 m² frontal RCS), high agility due to relaxed static stability design with quadruplex FBW controls—and compatibility with net-centric warfare via Link-II protocols—make it suitable for both independent missions or integration within larger strike packages involving Su-30MKIs or Mirage-2000s under AWACS guidance.

A Platform With Export Potential?

The scale-up enabled by this mega-order also positions HAL better for international marketing efforts targeting countries seeking affordable light fighter solutions without political strings attached—especially across Southeast Asia (Philippines), Latin America (Argentina), Africa (Egypt/Kenya), or Eastern Europe post-Russia sanctions realignment scenarios.

LCA has already been shortlisted or offered under various bilateral frameworks including:

Argentina: Ongoing discussions despite UK-origin component hurdles; HAL offering alternate subsystems where needed.
Sri Lanka & Egypt: Preliminary interest expressed; no formal RFPs yet issued publicly.
Nigeria & Malaysia: Past evaluations conducted; Malaysia ultimately opted for South Korea’s FA-50 but acknowledged LCA’s performance margins favorably during trials at Langkawi International Maritime & Aerospace Exhibition (LIMA).

A Milestone With Strategic Implications

This latest procurement cements India’s commitment not only toward self-reliant defense production but also toward developing sovereign aerospace competencies that could eventually support more ambitious programs like AMCA (Advanced Medium Combat Aircraft) stealth fighter or TEDBF carrier-based twin-engine fighter concepts currently under ADA/HAL conceptual phases.

If executed smoothly—with timely deliveries meeting quality benchmarks—the expanded LCA fleet will serve as both an operational asset and industrial testbed nurturing next-gen engineering talent across India’s public-private aerospace ecosystem over coming decades.