India’s Ministry of Defence signed a $7.5 billion contract on September 25, 2025, with Hindustan Aeronautics Limited (HAL) for 97 Tejas Mk1A fighter jets, marking a crucial step in modernizing the Indian Air Force. The deal, which includes 68 single-seat fighters and 29 twin-seat trainers, pushes the per-unit cost of Tejas Mk1A above $70 million, surpassing even the Su-30MKI, India’s erstwhile frontline fighter. This increase is attributed to global inflation in raw materials, post-COVID supply chain disruptions, and significant upgrades such as the indigenous UTTAM AESA radar and the Swayam Raksha Kavach electronic warfare suite. The Mk1A variant also boasts higher indigenous content, now over 64%, supporting the Atmanirbhar Bharat initiative for self-reliance. Deliveries are expected to begin by 2027 or 2028, with the program expected to sustain over 11,000 jobs. The rising cost reflects a global trend in fighter jet pricing, with similar inflation-driven increases seen in other leading programs like the U.S. F-35. Despite the higher price, the Tejas Mk1A holds strategic importance by replacing aging fighters and enhancing India’s domestic defense manufacturing prowess.