India Signs $7B Deal for 97 Tejas Fighter Jets

India signed a deal worth $7 billion on Thursday with state-owned Hindustan Aeronautics Limited (HAL) to procure 97 Tejas Mk-1A fighter jets for the country’s Air Force.

Deliveries of the home-grown fighters are scheduled over six years beginning 2027-28.

Defence Minister Rajnath Singh wrote on X that the aircraft would "enhance operational capability of the Indian Air Force to continue their unhindered operations and strengthen defence preparedness."

The deal comes a day before the last flight of India’s Russian-origin MiG-21 fighters. Following their retirement, the Air Force’s fleet will drop to 29 fighter squadrons, short of the approved 42 squadrons, a gap that has long concerned defence planners, especially after recent conflicts with Pakistan.

Thursday’s order is a follow-on to a 2021 contract for 83 Tejas Mk-1A jets, but deliveries from that earlier deal have not yet begun due to delays in engine supply from U.S. manufacturer General Electric. GE cited challenges in restarting production and global supply chain issues after the COVID-19 pandemic. The company delivered the first engine for the Mk-1A in March this year, and Indian officials expect production to stabilize within the current fiscal year.

The new order will bring India’s Tejas fleet to 220 aircraft. Officials said talks are ongoing for a follow-on deal with GE for additional engines.

According to the ministry, the Mk-1A variant incorporates indigenous systems including the UTTAM AESA radar, electronic warfare suite Swayam Raksha Kavach, and flight control actuators, with more than 64% domestic content. The program involves 105 suppliers and is expected to generate about 11,750 jobs annually over six years.