India Approves ₹62,000 Crore Deal for 97 Tejas Mark 1A Jets to Strengthen IAF Fleet.
Defence
On August 19, 2025, India’s Cabinet Committee on Security (CCS), led by Prime Minister Narendra Modi, approved a ₹62,000 crore deal to procure 97 Tejas Mark 1A Light Combat Aircraft (LCA) for the Indian Air Force (IAF). The acquisition is poised to significantly bolster indigenous aerospace strength and phase out ageing MiG-21s.
- This approval marks the second major order for Tejas Mark 1A jets after an earlier deal for 83 aircraft worth approximately ₹48,000 crore in 2021. With this new purchase, IAF’s total Tejas Mark 1A fleet will rise to 180 aircraft, reinforcing the domestic aerospace manufacturing ecosystem.
- The Tejas Mark 1A boasts over 65% indigenous content, involving more than 500 small and medium enterprises nationwide. Equipped with AESA radar, advanced avionics, EW systems, and in-flight refuelling capabilities, the aircraft exemplify India’s growing self-reliance in defence technology.
Main Point :- (i) This acquisition is strategically timed as the IAF plans to phase out its ageing MiG-21 fleet by September 2025. The new Tejas Mark 1A aircraft will take on crucial roles in air defence and precision strike, supporting India’s regional security posture.
(ii) Following the announcement, defence-oriented stocks such as Hindustan Aeronautics Limited (HAL) and Bharat Dynamics Limited (BDL) rallied up to 3.5%, reflecting investor optimism. HAL, the principal manufacturer, is expected to ramp up production at its Nashik facility to meet delivery timelines between 2025 and 2032.
About Indian Air Force (IAF)
Deputy Chief of the Air Staff (DCAS): Air Marshal Awadhesh Kumar Bharti
Headquarters: New Delhi
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