This decision sees the Government of India looking for 97 LCA Tejas Mark 1A fighter jets for the Air Force. It is considered a landmark decision establishing homegrown capabilities in the country, holding the banner of Indigenous Capability.
On August 19, 2025, during the high-profile meeting wherein the contract of Rs. 62,000 crore was signed, the 'Make in India' initiative received a massive push.
The LCA Tejas Mark 1A is an indigenously built lightweight combat aircraft with advanced avionics/radar systems/weapons. More than 65% of the components of this aircraft are built indigenously, serving as an example of India's increasing defense technology self-reliance.
The proposed procurement would be a suitable conduit for phasing out MiG-21s, which are already being phased out.
This procurement is more than a military enhancement; it is an economic strategy. The crunch tests current opportunities for small and medium-sized defense manufacturers nationwide. Following this approval announcement, defense stocks have rallied, with Hindustan Aeronautics Limited (HAL) and Bharat Dynamics Limited (BDL) climbing by nearly 3.5%.
Prime Minister Narendra Modi has truly championed the cause of indigenous defense capability building in India. To demonstrate the support spectacularly, the Prime Minister flew a sortie on a Tejas trainer variant for the first time in Indian history, wherein an Indian Prime Minister has flown in a combat aircraft.
This move fits into the larger plan of the government to reduce dependence on foreign defense imports and enhance national security.
With the deal sealed, HAL will begin massive production of the Tejas Mark 1A. Deliveries are expected to start in the coming months, while induction will move at full steam over the following years.
Such an acquisition will enhance the IAF's combat potential, thereby solidifying India's position as a rising force in global defense production.