India’s Ministry of Defence signed a contract with Hindustan Aeronautics Limited (HAL) on 25 September 2025 for 97 Light Combat Aircraft Mk1A for the Indian Air Force: 68 fighters and 29 twin-seaters, with associated equipment. The stated value is over ₹62,370 crore, excluding taxes. Aircraft deliveries are scheduled to start in 2027–28 and run over six years. [Ministry of Defence]
What the contract covers
The Ministry of Defence (MoD) says the acquisition is under the Buy (India-IDDM) category of the Defence Acquisition Procedure 2020. HAL’s exchange filing on the signing date also confirms a 97-aircraft contract valued at over ₹62,370 crore. [MoD announcement] [HAL filing]
| Contract detail | Announced terms |
|---|---|
| Buyer and operator | Ministry of Defence; aircraft for the Indian Air Force |
| Supplier | Hindustan Aeronautics Limited |
| Quantity and configuration | 97 aircraft: 68 fighters and 29 twin-seaters |
| Value | Over ₹62,370 crore, excluding taxes |
| Aircraft delivery schedule | Scheduled to begin in 2027–28 and conclude over six years |
| Acquisition category | Buy (India-IDDM), under Defence Acquisition Procedure 2020 |
The value is the announced contract figure, not a per-aircraft price: it covers the order with associated equipment, and the announcement gives no cost breakdown. It also does not publish annual delivery quantities, payment milestones, or contractual remedies for delay.
What is new in the Mk1A configuration
The MoD says the aircraft will have over 64% indigenous content and include 67 additional items compared with the Mk1A contract signed in January 2021. Named systems include the UTTAM Active Electronically Scanned Array (AESA) radar, Swayam Raksha Kavach and control-surface actuators. The announcement does not explain the calculation method behind the indigenous-content percentage, so it should be read as the government’s stated programme figure rather than an independently defined measure. [MoD announcement]
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Aircraft deliveries and engine supply are separate schedules
The contract announcement schedules aircraft deliveries to begin in 2027–28 and finish over six years. In its 2025 year-end review, the MoD separately reported that HAL signed an agreement with General Electric Company (GE), USA, on 7 November 2025 for 113 F404-GE-IN20 engines and a support package for the 97-aircraft programme. Engine deliveries are scheduled for 2027–2032. These are related but distinct timelines; the available official statements do not explain why the engine quantity exceeds the aircraft order, so the difference should not be assigned a purpose without further evidence. [MoD year-end review]
What the order means for Indian suppliers and jobs
The MoD expects nearly 105 Indian companies to be directly engaged in manufacturing detailed components for the programme. It also estimates close to 11,750 direct and indirect jobs per year for six years. Those are government projections, not confirmed supplier participation totals or a verified employment count. [MoD announcement]
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A separate MoD account from 9 March 2025 gives an earlier production snapshot: HAL had then manufactured 12 Mk1A rear fuselages that were on aircraft in the manufacturing line. At the event, Alpha Tocol Engineering Services Private Limited handed the first LCA Mk1A rear fuselage to HAL at its Bengaluru Aircraft Division. The release names L&T, Alpha Tocol, Tata Advanced Systems, VEM Technologies and Lakshmi Mission Works as suppliers of major modules for the earlier 83-aircraft Mk1A contract—not as a complete supplier roster for this 97-aircraft order. [MoD rear-fuselage release]
At the handover event, Defence Minister Rajnath Singh said: “Together with these Indian components, the aircraft which is being manufactured in our defence and aerospace sector will reach greater heights in the times to come.” [MoD rear-fuselage release]
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What has not been disclosed
- The number of aircraft planned for delivery in each year.
- Detailed payment milestones and contractual penalties or other remedies for delay.
- The rationale for the 113-engine quantity in relation to the 97-aircraft order.
The announced dates and industrial effects are programme plans and estimates; they do not establish that aircraft or engines have already been delivered, or that projected jobs have been realized.
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