India has taken a major step towards self-reliance in its defence sector with the signing of its largest-ever indigenous fighter jet contract. On September 25, 2025, the Ministry of Defence inked a deal worth more than ₹66,500 crore (approximately $7 billion) with Hindustan Aeronautics Limited (HAL) for the supply of 97 Tejas Mk-1A fighter jets to the Indian Air Force (IAF). This contract represents the most significant push yet to modernize the IAF fleet and reduce dependency on imported aircraft.
The new order includes 68 single-seat fighters and 29 twin-seat trainers, with deliveries slated to begin in 2027-2028 and run over six years. These fighters, featuring more than 64% indigenous content, are equipped with advanced India-developed technologies such as the Uttam AESA radar and Swayam Raksha Kavach self-protection system. The deal also involves a robust supply chain, directly engaging around 105 Indian companies and is expected to generate approximately 11,750 jobs annually during the manufacturing phase, providing a strong boost to the domestic aerospace ecosystem.
This procurement is in addition to an earlier order for 83 Tejas Mk-1A jets placed in 2021, which aimed to replace the ageing MiG-21 fighters. The latest contract reinforces India’s “Aatmanirbharta” (self-reliance) campaign in defence technology and manufacturing. The Tejas Mk-1A will serve as the mainstay for the IAF, bringing enhanced operational capability and reliability, while accelerating the vision of making India a global player in advanced defence systems.
Industry observers note that timely delivery will be key, as the IAF seeks to increase its squadron strength and modernize its fleet to address emerging security challenges in the region.
