India Approves ₹62,000 Crore Deal For LCA Tejas Mark 1A, HAL Shares Gain

India has taken a major step towards strengthening its defense sector. The government has approved a massive deal worth around ₹62,000 crore for the purchase of 97 LCA Tejas Mark 1A fighter jets. This decision is seen as a big boost for the Indian Air Force (IAF) and also for the Make in India programme in defense manufacturing.

The deal will be executed by Hindustan Aeronautics Limited (HAL). The Tejas fighter jets are fully indigenously developed. This means most of the parts and technology come from within the country. With this approval, India aims to reduce its dependency on foreign defense imports and strengthen its domestic production capabilities.Tejas Mark 1A Deal Details

The 97 fighter jets will join the fleet of the Indian Air Force in the coming years. This number is in addition to the earlier order of 83 Tejas Mark 1A aircraft, which HAL is already producing. The fresh order shows the trust that the government and the Air Force have in the performance of the Tejas jets.

The Tejas Mark 1A is an improved version of the original Tejas. It comes with better avionics, radar, and weapons capability. It is lighter, more agile, and fitted with advanced electronic systems. These upgrades make the aircraft suitable for modern combat needs.Impact on HAL

The news of the fresh order immediately affected the stock market. HAL shares saw a sharp rise after the announcement. On August 20, 2025, the shares went up by nearly 3 to 3.5 percent. At one point during the day, HAL stock touched a high of around ₹4,611 on the BSE.

As of the morning session on the same day, HAL shares were trading near ₹4,525. The stock has already given strong returns in the past year. Its 52-week high stands at ₹5,165, while the low was recorded around ₹3,046. Market experts now see a near-term target of ₹4,800 to ₹5,000 for the stock. The support level is considered to be near ₹4,320.

This rally is not limited to HAL alone. Other defense sector stocks also moved upward after the government’s decision. Investors believe that this deal signals a long-term growth story for defense companies in India.Production Momentum

HAL is working to speed up production to meet the delivery timelines. The company has already started receiving engines and key parts required for the aircraft. General Electric has supplied one F404 engine and 10 more are expected within this financial year.

In addition, private companies are also playing an important role. A Hyderabad-based firm, VEM Technologies, has delivered major fuselage components to HAL. This shows the increasing role of private players in India’s defense ecosystem. HAL has also set up a fourth production line to ensure faster manufacturing. Earlier, the company was running three lines in Bengaluru and Nashik.Strategic Importance

The Tejas programme is not just about building fighter jets. It is about building self-reliance in defense. India has long been dependent on imports from countries like Russia, France, and the US for its military aircraft. With Tejas, India is moving towards its own ecosystem where technology, parts, and production are handled locally.

This step is also crucial at a time when global geopolitical tensions are high. Having a large number of homegrown fighter jets gives India greater flexibility and strength in defense planning.