MoD Signs ₹62,370 Crore Deal with HAL for 97 LCA Mk1A to Boost IAF and Aatmanirbharta

In a landmark step to strengthen the combat capabilities of the Indian Air Force (IAF) and accelerate the journey of defence indigenisation, the Ministry of Defence (MoD) signed a contract with Hindustan Aeronautics Limited (HAL) on September 25, 2025, for the procurement of 97 Light Combat Aircraft (LCA) Mk1A. The contract, valued at over ₹62,370 crore (excluding taxes), includes 68 single-seat fighter variants and 29 twin-seat trainer variants, along with associated systems and equipment.

Delivery Timeline and Scale of Production

The first batch of aircraft under this agreement is scheduled to be delivered in the financial year 2027–28. The complete supply will be spread over a period of six years, ensuring systematic induction into the IAF fleet. This phased delivery will allow the Air Force to gradually enhance its operational readiness while ensuring smooth integration of these aircraft into existing formations.

Indigenous Content and Technological Advancements

A major highlight of this deal is the significant rise in indigenous content, exceeding 64%. In comparison to the earlier LCA Mk1A contract signed in January 2021, this contract incorporates 67 additional items of Indian origin. The inclusion of cutting-edge indigenous systems such as the UTTAM Active Electronically Scanned Array (AESA) Radar, Swayam Raksha Kavach electronic warfare suite, and advanced control surface actuators represents a significant leap in self-reliance under the Government’s flagship Aatmanirbhar Bharat Abhiyan.

The LCA Mk1A is currently the most advanced variant of the indigenously designed Tejas fighter aircraft family. Known for its agility, advanced avionics, and multi-role capabilities, the Mk1A is expected to form the backbone of India’s medium-weight combat aircraft fleet in the coming decades.

Employment Generation and Industrial Ecosystem

Beyond its defence significance, the programme is set to provide a considerable boost to the Indian aerospace industry. Nearly 105 Indian companies are directly engaged as vendors for the manufacturing of detailed components. With this extensive industrial participation, the project is projected to generate close to 11,750 direct and indirect jobs annually over the next six years. This surge in employment is expected to have a multiplier effect on skill development, ancillary industries, and regional economies.

Strategic Importance and Policy Framework

The acquisition is categorized under the ‘Buy (India-IDDM)’ provision of the Defence Acquisition Procedure 2020, the highest priority category emphasizing Indigenously Designed, Developed and Manufactured products. By placing such a large-scale order on HAL, the government has reaffirmed its commitment to reducing dependence on foreign suppliers and developing India’s in-house defence production ecosystem.

The addition of 97 LCA Mk1A aircraft will significantly augment the IAF’s fleet strength, helping address the gap between sanctioned squadron strength and operational requirements. With indigenous systems onboard, these fighters are expected to provide a technological edge while ensuring reduced lifecycle costs compared to imported platforms.

This contract marks one of the largest-ever indigenous defence procurements in India’s history. It not only equips the IAF with modern, combat-ready aircraft but also strengthens the country’s long-term vision of becoming a global hub for aerospace and defence manufacturing. By combining advanced indigenous technology with large-scale industrial participation, the LCA Mk1A project is poised to become a cornerstone of India’s self-reliant defence future.