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Hindustan Aeronautics (HAL) shares climbed 2% on Thursday after news broke that the Defence Ministry will ink a ₹67,000 crore contract for 97 Tejas Mk-1A fighter jets.
The numbers: this new deal builds on a ₹47,000 crore contract for 83 jets signed back in 2021. With the fresh order, HAL’s backlog could swell by 35%, adding heft to its already massive $22B order book.
Not stopping there, the long-term pipeline is a whopping $54 billion.
Why it matters: Tejas is India’s homegrown fighter jet, a key pillar of the self-reliance drive in defence.
Each order means less reliance on foreign suppliers & stronger R&D. On the economic front, it’s a ₹67,000 crore injection into India’s aerospace ecosystem. For the Air Force, it adds a modern, combat-ready fleet that can hold its own against regional rivals.
Big theme: Defence spending is ramping up as India modernises its air fleet. With global tensions rising and neighbours beefing up arsenals, the Tejas Mk-1A deal is about ensuring India has an indigenous fighter fleet ready to defend its skies.
On Wednesday, L&T and BEL teamed up to power the Indian Air Force’s advanced medium combat aircraft (AMCA) programme. This is India’s first fifth-generation fighter jet project.
