India's indigenous Tejas light combat aircraft (LCA) stands out not only for its technological advancements but also for its cost-effectiveness in comparison to other modern fighter jets. The Tejas is produced by Hindustan Aeronautics Limited (HAL) in collaboration with the Aeronautical Development Agency (ADA). With the Indian government's strong emphasis on the "Make in India" defense strategy, the Tejas program is central to reducing reliance on foreign platforms.

Cost Comparison

The Tejas Mk-1A is priced at approximately ₹578 crore (approximately $70 million USD) per unit. This is significantly less than the cost of other advanced fighter jets, such as:

• Dassault Rafale: The Rafale M, a naval variant, costs India approximately $288 million per aircraft, including weapons, spares, training, and infrastructure. The flyaway cost as of 2010 for the F3+ version was €101.1 million.
• Lockheed Martin F-16 Fighting Falcon: While older models were significantly cheaper, the newest F-16V can cost around $70 million, and deals with comprehensive packages can push the per-unit cost to $279 million.
• Eurofighter Typhoon: Estimates place the Eurofighter Typhoon at $117 million to $300 million per unit, with the higher end including weapons and add-ons.
• Chengdu J-20 Mighty Dragon: Estimates for the J-20 range from $30-$50 million (flyaway cost estimate as of 2017) to $100-$110 million (Low Rate Initial Production estimate as of 2018).

Factors Contributing to Lower Cost

Several factors contribute to the Tejas's lower cost:

• Indigenous Manufacturing: As a domestically produced aircraft, the Tejas benefits from lower labor costs and reduced import duties. The "Make in India" initiative further incentivizes local production.
• Design Philosophy: The Tejas is designed as a light combat aircraft, focusing on essential capabilities without excessive complexity, which helps keep production costs down.
• Government Support: The Indian government has invested significantly in the Tejas program, providing financial support and infrastructure, which lowers the overall cost. In September 2022, the Cabinet Committee on Security cleared ₹10,000 crore (US$1.3 billion in 2023) for the Tejas Mark 2, which includes prototype development and flight testing.

Operational Advantages

Despite its lower cost, the Tejas Mk-1A is a capable fighter jet with several operational advantages:

• Advanced Features: The Mk-1A variant includes an active electronically scanned array (AESA) radar, advanced electronic warfare suite, beyond-visual-range missiles, and air-to-air refueling capability.
• Multirole Capability: The Tejas is designed for both air defense and ground-attack missions, providing flexibility in various operational scenarios.
• Customization: India has secured the integration of indigenous weapons, such as the Astra Mk1 air-to-air missile and Rudram anti-radiation missile, aligning with its defense self-reliance goals.

Orders and Future Development

The Indian Air Force (IAF) is set to expand its Tejas fleet significantly. In 2021, the Defence Ministry ordered 83 Mk-1A jets. In August 2025, the Cabinet Committee on Security cleared the procurement of 97 LCA Tejas Mk 1A for the IAF. HAL plans to spend approximately $7.4 billion on these new aircraft. The first flight of the Tejas Mk 2 is expected by October 2025, with R&D to be completed by December 2027 and mass production by 2029.

The HAL Tejas Mk 2 will have an elongated airframe, close-coupled canards, new sensors, and a more powerful engine. The ADA completed its critical design review in November 2021, with 20 subsystems cleared by the IAF for production. The plan is to increase indigenization from 62% in the Tejas Mark 1A to 70% in the Mark 2.

By offering a modern and capable fighter jet at a fraction of the cost of its competitors, the Tejas has the potential to be a game-changer for India's defense capabilities and a significant player in the international arms market.