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“India Clears ₹62,000 Crore Tejas Mk-1A Deal: Boost for HAL, IAF & ‘Make in India’”

 



On August 19, 2025, the Indian government cleared a landmark ₹62,000 crore contract to acquire 97 Tejas Mk-1A fighter jets from Hindustan Aeronautics Limited (HAL). The move signals a major leap toward self-reliance in defence manufacturing and a strategic enhancement of the Indian Air Force’s capabilities.

What’s in the Deal?

  • Scale & Scope: The order covers 97 advanced LCA Tejas Mk-1A jets, bringing the total Mk-1A commitment to 180 units.

  • What Makes Mk-1A Special: Upgraded avionics and sensors, including AESA radar variants (EL/M-2052 or indigenous Uttam), advanced electronic warfare systems, in-flight refueling, and enhanced weaponry.


Strategic Context

  • Modernizing the IAF: The Mk-1A jets are set to phase out India’s aging MiG-21 fleet.

  • ‘Make in India’ Momentum: With over 65% indigenous content, the deal advances both the Make in India and Atmanirbhar Bharat agendas.


Market & Industrial Impact

  • Stock Market Response:

    • HAL shares surged 3–4%, reaching highs around ₹4,610 on the BSE. 

    • Related defence stocks like Bharat Dynamics Limited (BDL) also saw gains. 

  • Industrial Ecosystem Benefit: The project is expected to energize hundreds of SMEs involved in the defence supply chain. 


Future Outlook

  • Delivery Timeline: Deliveries are expected to commence around 2028, with completion anticipated by 2031. 

  • Ongoing Progress: HAL is scheduled to deliver at least six Tejas LCAs by March 2026, showcasing progress despite earlier delays.

  • Next-gen Projects: HAL is also preparing for future orders—over 200 Tejas Mk-2 aircraft and additional AMCA (Advanced Medium Combat Aircraft) are in the offing. Wiki


This ₹62,000 crore deal is more than a military procurement—it’s a powerful trifecta for national security, defence autonomy, and industrial growth. By placing faith in HAL and indigenous design, India underscores its mission to modernize, be self-reliant, and future-ready.

Summary Table 

Key AspectDetails
Deal Value₹62,000 crore
Aircraft Ordered97 Tejas Mk-1A (Total Mk-1A now 180 jets)
Key UpgradesAESA radar, EW suite, in-flight refueling, upgraded avionics
Strategic SignificanceMiG-21 replacement, Make in India, industrial boost
Market ReactionHAL shares rallied 3–4%, BDL also gained
Delivery Timeline2028–2031
Next StepsTejas Mk-2, AMCA programmes underway

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