The recent crash of India’s Tejas fighter jet at the Dubai Airshow has raised questions not only about safety but also the financial stakes of the country’s domestically produced aircraft programme.
Developed by Hindustan Aeronautics Limited (HAL) and the Aeronautical Development Agency, the Tejas is central to India’s ‘Make in India’ defence initiative. Under a 2021 deal, India ordered 83 Tejas Mk 1A aircraft at a total cost of roughly $6.5 billion, bringing the per-unit cost to about $43 million. The trainer variant was priced slightly lower at approximately $39 million each.
However, costs have escalated with new orders. A fresh deal in 2025 for 97 Tejas Mk 1A jets is valued at $7.8 billion, suggesting a per-unit price of nearly $80 million, reflecting inflation, technological upgrades, and rising input costs.
HAL has also promoted Tejas for export, estimating a competitive price of around $43 million per aircraft. But the recent crash at a high-profile international event may dampen foreign interest, raising concerns about the programme’s credibility in global markets.
Once celebrated as a cost-effective indigenous fighter, the Tejas programme now faces heightened scrutiny over both safety and cost efficiency as India seeks to modernize its fleet and expand defence exports.
