India Signs Rs 66,500 Crore Deal for This Fighter Jet

NEW DELHI– India finalized its largest-ever defense aviation contract, a Rs 66,500 crore deal for 97 Tejas fighter jets. The landmark agreement marks a significant milestone for the country’s indigenous aircraft development program.

The Tejas aircraft, developed by Hindustan Aeronautics Limited (HAL), is a fourth-generation, single-engine, multi-role fighter designed for the Indian Air Force (IAF). The upcoming deal is anticipated to further strengthen India’s self-reliance in defense production.

Photo: By Government of India – https://x.com/DRDO_India/status/1821898262963744913, GODL-India, https://commons.wikimedia.org/w/index.php?curid=151464005

India Signs Tejas Deal

The Rs 66,500 crore agreement involves the purchase of 97 Tejas Mk-1A jets. Once confirmed, this will be the largest single aircraft order placed by the Indian Air Force to date. HAL will be responsible for manufacturing the aircraft and ensuring delivery, reported The Times of India:

The IAF was insistent the new contract should not be inked before deliveries of the earlier 83 jets begin, with HAL being held accountable. The defence ministry, however, must spend its budget within specified timelines…the initial payment will go to HAL once the contract is signed

With this fresh deal, the total Tejas fleet will significantly expand, giving the IAF a modernized backbone for its fighter operations.

The Tejas program has long been positioned as a cornerstone of India’s Make in India and Atmanirbhar Bharat initiatives.

Industry experts note that this order will also contribute to job creation in the aviation sector and enhance India’s ability to design, test, and field advanced combat aircraft.

Tejas F-404 Engine; Photo- GE Aerospace

Strategic Impact on the Indian Air Force

For the Indian Air Force, the expanded Tejas fleet will replace aging MiG-21 aircraft and support operational readiness. The new fighters are equipped with advanced avionics, radar systems, and improved combat capabilities suitable for both defensive and offensive missions.

This large-scale procurement is designed to strengthen India’s deterrence capabilities and prepare the IAF for evolving regional security challenges. Officials have indicated that HAL’s delivery schedule will be closely monitored to ensure the timely induction of the jets into service.

The Tejas Mk-1A order underscores confidence in India’s indigenous aircraft program and paves the way for future variants, including the Tejas Mk-2 and the Advanced Medium Combat Aircraft (AMCA).

These developments aim to further reduce reliance on imported platforms and increase India’s share in the global defense aviation market.

Photo: By Government of India – https://x.com/DRDO_India/status/1821898262963744913, GODL-India, https://commons.wikimedia.org/w/index.php?curid=151464004

Bottom Line

HAL has committed to gradually increasing Tejas output, first reaching 20 aircraft annually and then expanding to 24–30 units per year.

The third production line in Nashik is now fully operational, supplementing the two existing lines in Bengaluru, along with support from private sector suppliers.

The Rs 66,500 crore deal, once signed, will be a defining step in India’s efforts to achieve greater self-sufficiency in aerospace technology.

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