India has approved a landmark Rs 62,000 crore deal to acquire 97 indigenous LCA Mark 1A fighter jets for the Indian Air Force, marking the country’s second major order for the advanced variant and significantly boosting domestic defense manufacturing capabilities.
The final approval for the acquisition was given by a high-level meeting on Tuesday and will pave the way for Hindustan Aeronautics Limited to produce the aircraft, according to defense sources. This represents the second order for the LCA Mark 1A fighters, following an earlier purchase of 83 aircraft worth approximately Rs 48,000 crore that was approved in 2021.
Strategic Timing Amid Squadron Shortage
The timing of this approval is critical for the Indian Air Force, which is set to retire its last MiG-21 squadrons in September after over six decades of service. This retirement will push the IAF’s squadron strength down to just 29, the lowest since the 1960s, against a sanctioned strength of 42 squadrons. The new LCA Mark 1A jets are specifically intended to replace these aging MiG-21 aircraft, which have earned the nickname “flying coffin” due to numerous accidents.
The plan to acquire 97 more LCA Mark 1A fighters was first announced by former Air Force chief Air Chief Marshal V.R. Chaudhari in Spain, when he revealed the mega plans to boost indigenous fighter aircraft orders. The Defence Acquisition Council had already cleared the proposal in November 2023, with the ministry issuing a tender to HAL in April 2024.
Indigenous Manufacturing Boost
The LCA Mark 1A represents a significant advancement over its predecessor, featuring more than 40 improvements including advanced avionics, an Active Electronically Scanned Array radar, beyond-visual-range missile capabilities, electronic warfare suites, and air-to-air refueling capability. The indigenous content of the aircraft exceeds 60 percent, with plans to increase this further in future batches.
This program is being hailed as a major boost for Prime Minister Narendra Modi’s “Make in India” defense initiative and will provide significant business opportunities to small and medium enterprises across the country. About 500 Indian companies, including MSMEs, are expected to be involved in the design and manufacturing process.
Production Scaling and Timeline
HAL has been scaling up its production capabilities to meet the growing demand. The company currently operates three production lines – two in Bengaluru and one in Nashik – with a combined capacity to produce 24 aircraft annually by 2025-26. The Nashik facility, which began operations in 2024, is expected to contribute eight aircraft per year once fully operational.
The delivery of the first batch of 83 LCA Mark 1A aircraft is scheduled to begin in early 2025, with all deliveries completed by 2028. The second batch of 97 aircraft is expected to commence production in 2028, with deliveries targeted for completion by 2031-32.
However, the program has faced delays due to supply chain issues with GE Aerospace’s F404 engines, which have been delivered behind schedule due to pandemic-related disruptions and supplier bottlenecks. HAL has received only limited engines so far, with expectations of receiving 12 more by March 2026.
The approval of this Rs 62,000 crore deal represents India’s continued commitment to self-reliance in defense manufacturing and positions the LCA Mark 1A as a cornerstone of the IAF’s modernization efforts. Combined with the earlier order, the total procurement of 180 LCA Mark 1A aircraft will significantly strengthen India’s air defense capabilities while reducing dependence on foreign military hardware.
