India is on the verge of finalizing a monumental deal worth ₹66,500 crore with Hindustan Aeronautics Limited (HAL) for the acquisition of 97 Tejas Mark-1A fighter jets. This landmark agreement, the largest of its kind for the Tejas program, is expected to be formalized soon and will significantly bolster the Indian Air Force's (IAF) combat capabilities amidst a depleting squadron strength.

The procurement of these 97 Tejas Mark-1A fighters comes at a critical juncture for the IAF, which is currently operating with a reduced number of fighter squadrons. The IAF's fighter squadron strength has fallen to 29, against a sanctioned strength of 42.5. The Tejas Mark 1A will replace retiring fleets like the MiG-21, MiG-27, and Jaguar.

The Cabinet Committee on Security (CCS), led by Prime Minister Narendra Modi, approved the acquisition of the 97 Tejas Mark-1A fighters in August 2025. The contract with HAL is expected to be formalized in October, contingent on HAL delivering the first two aircraft from the 83 already on order.

The ₹66,000 crore deal includes 68 single-seater Tejas Mk1A fighter jets and 29 twin-seater Tejas Trainers, all upgraded to the advanced Mk1A standard. Unlike the 18 Tejas Trainers previously delivered under the Mk1 configuration with the older EL/M-2032 radar, these 29 new trainers will feature the same cutting-edge avionics, including the Active Electronically Scanned Array (AESA) radar.

HAL is also expected to place an additional order for 113 F404 engines worth $1 billion in September for the Tejas program.

HAL is expanding its production infrastructure to meet the demands of this large order. The company currently operates two production lines in Bengaluru, each producing 8 jets annually, and a third in Nashik, operational since 2023, adding another 8. By 2026, a fourth line will push capacity to 32 jets per year, with plans for 30 annually from 2027. Deliveries for the 97-jet order are slated to begin in 2028, after the initial 83, and conclude by 2031.

The Tejas Mark 1A is an upgraded version of the Tejas, featuring advanced avionics and radar systems. It includes improvements in combat avionics and air-to-air refueling capabilities. Over 65% of the components in the new aircraft are of indigenous origin. The Tejas Mk1A will also be equipped with the indigenous Uttam Active Electronically Scanned Array (AESA) radar and Electronic Warfare (EW) suite, developed by DRDO.

This acquisition is a significant boost to India's defense self-reliance, with the Tejas program strongly aligned with the "Make in India" and "Atmanirbhar Bharat" initiatives. The project will benefit hundreds of small and medium enterprises (SMEs) involved in manufacturing defense components across India.

With the formalization of this ₹66,500 crore deal, the IAF is poised to significantly enhance its operational capabilities and modernize its fighter fleet with the indigenous Tejas Mark-1A.