Centre Clears ₹62,000 Crore Deal For 97 Tejas Fighter Jets, Boost To ‘Make In India’ Defence Drive

The Cabinet Committee on Security (CCS), chaired by Prime Minister Narendra Modi, has approved a landmark defence acquisition worth ₹62,000 crore for the procurement of 97 Tejas Mark-1A light combat aircraft for the Indian Air Force (IAF). The move is being hailed as one of the biggest pushes for indigenous defence manufacturing under the government’s Atmanirbhar Bharat initiative.

The order, placed with state-owned Hindustan Aeronautics Limited (HAL), comes on top of a previous contract for 83 Tejas Mark-1A jets signed in 2021. With this fresh approval, the IAF’s total Tejas fleet under production will rise to 180 aircraft, making it the backbone of India’s light combat fleet in the coming decade.

Why the Tejas Deal Matters

The Tejas Mark-1A is an advanced variant of the indigenous fighter, boasting improved avionics, an advanced radar system, electronic warfare suites, self-protection jammers, and in-flight refuelling capability. The aircraft has an indigenous content of over 65%, a figure expected to grow further as domestic suppliers ramp up production.

Officials said the induction of nearly 100 more Tejas fighters will allow the IAF to begin phasing out its ageing fleet of MiG-21s, many of which have been in service for over five decades. The replacement is expected to enhance India’s combat readiness, especially along sensitive borders.

Economic and Industrial Impact

The mega order will also give a significant boost to India’s defence ecosystem. HAL has announced that the project will involve hundreds of micro, small, and medium enterprises (MSMEs) in the supply chain, generating large-scale employment and advancing technology transfer.

The announcement had an immediate ripple effect in financial markets, with shares of HAL gaining over 3% on Wednesday. Other defence sector firms, including Bharat Dynamics, also witnessed gains, reflecting investor optimism in the indigenous defence push.

What’s Next for Tejas Mark-1A

Defence officials confirmed that the procurement process includes finalising engine supplies, particularly the General Electric F404 engines, to meet production targets. Deliveries of the newly approved Tejas aircraft are expected to be staggered over the next few years, with HAL already ramping up manufacturing capacity.

Strategic experts note that the move will not only modernise the IAF but also reinforce India’s defence diplomacy by showcasing its capability to design, produce and deploy world-class fighter jets.

With the Tejas Mark-1A now set to become a mainstay of the Indian Air Force, the government’s latest approval marks a decisive step towards reducing dependence on foreign suppliers and strengthening India’s status as a self-reliant defence power.

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