Leading the Indian contingent is Hindustan Aeronautics Limited (HAL), renowned for its Light Combat Aircraft (LCA) Tejas, which secured the 44th position globally. Bharat Electronics Limited (BEL), a key player in radar and electronic warfare systems, followed at 58th. Mazagon Dockyard Limited (MDL), a prominent builder of warships and submarines, also earned a spot at 91st.

The SIPRI report, released on December 1, 2025, reveals that the global arms market saw record revenues of $679 billion in 2024. The United States continues its dominance, with four of the top five global arms producers hailing from the US, including industry giants like Lockheed Martin and RTX. The UK’s BAE Systems is the sole non-US company in the top five, ranking fourth. Overall, 39 US companies are featured in the Top 100, with many experiencing revenue growth, reflecting the strong financial performance of the defense industry.

The Tejas, a sophisticated single-engine, 4.5-generation multirole combat aircraft, was performing low-flying maneuvers when it tragically went down and caught fire near the runway at Al Maktoum International Airport. This incident led to a nearly 9% drop in HAL shares during early trading on Monday, with the stock reaching a seven-month low. The aircraft, designed by the Aeronautical Development Agency (ADA) and manufactured by HAL, is a key asset for the Indian Air Force (IAF), incorporating advanced technology and a GE engine.

Significant orders for the Tejas, including the advanced Mk1A variant, are in place, underscoring its importance to India’s defense capabilities. The LCA Mk1A boasts upgrades such as an AESA radar, enhanced electronic warfare suites, and advanced display systems, making it a versatile platform for various combat roles. HAL expressed deep sorrow over the loss of the IAF pilot during the display and is committed to the ongoing inquiry.

Russia is touting the Su-75 as the world’s most economical fifth-generation stealth fighter, with an estimated price tag between $30 and $35 million. This new aircraft boasts impressive specifications, including a top speed of Mach 1.8, a 3,000 km range, and a service ceiling of 54,000 feet. Its capacity for internal weapon carriage is a critical feature for maintaining its stealth profile during combat operations.

The cornerstone of Russia’s offer is the potential for indigenous production in India. This arrangement would empower Hindustan Aeronautics Limited (HAL) not only to manufacture these advanced jets domestically but also to establish them as export platforms for markets across Asia, Africa, and the Middle East. Furthermore, Russia has committed to transferring crucial technologies, such as stealth design principles, AI-driven cockpit systems, advanced sensor fusion, and next-generation network-centric warfare capabilities – technologies often withheld by Western nations.

HAL has expressed an openness to joint development with Russia, though the specific fighter jet involved remains to be confirmed. Officials have highlighted a comfortable working relationship with Russia, drawing on past successful collaborations in assembling aircraft like the MiG-21, MiG-27, and Su-30MKI. Such a partnership could grant India full intellectual property rights, bolstering self-reliance and providing a shield against potential import restrictions or geopolitical pressures from other global powers.

Experts believe local Su-75 production could yield economic advantages akin to the BrahMos missile program, potentially generating substantial export revenue without impeding indigenous projects like the Advanced Medium Combat Aircraft (AMCA). While the Su-75 is a lighter, single-engine stealth fighter, and the AMCA is a twin-engine, medium-weight counterpart, they fulfill distinct operational roles. The cost-effective domestic manufacturing of the Su-75 could swiftly meet immediate fighter demands.

Russia emphasizes that the Su-75 will be available at an exceptionally low cost for a fifth-generation fighter. It is expected to feature advanced components, including a supercruise-capable engine and avionics derived from the Su-57, along with fully internal weapon bays, ensuring stealth performance remains paramount. The Su-57 itself is a proven multirole fighter, excelling in both air-to-air and air-to-ground combat. Its sophisticated stealth features, including radar-absorbent materials and internal weapon storage, enable long-range, undetected engagement.

Analysts note that the Su-57 possesses unique capabilities for Suppression and Destruction of Enemy Air Defenses (SEAD/DEAD) missions, potentially surpassing those of aircraft like the F-35 or China’s J-20. This capacity to neutralize enemy air defense systems makes it a highly valuable asset for the Indian Air Force. As India grapples with an urgent need to modernize its air fleet, the decision between acquiring Russian stealth fighters and continuing talks for Western aircraft, such as additional Rafale jets, represents a critical strategic juncture in the near future.

The IAF currently operates 31 fighter squadrons, falling short of the 42 needed for adequate national defense. Facing this persistent gap, senior officials have previously advocated for additional French-made Rafale jets, citing their superior combat readiness. A recent proposal for 114 Rafale jets, valued at over Rs 2 lakh crore, was sent back by the government for further details, specifically demanding a clearer roadmap for local manufacturing and comprehensive technology transfer.

Industry insiders suggest the government is pushing Dassault Aviation, the Rafale manufacturer, to produce key components within India. However, defense experts warn that the window for such a deal is rapidly closing. As India’s indigenous Tejas Mk-2 and the futuristic Advanced Medium Combat Aircraft (AMCA) gain momentum, the justification for a new, costly Rafale purchase may diminish.

The Tejas Mk-2, a 4.5-generation fighter, is progressing steadily with its prototype anticipated by mid-2026 and first flight in 2027. Full production is eyed for 2029-2030, featuring advanced avionics and an indigenous AESA radar. Meanwhile, the Tejas Mk-1 is already entering production, with initial batches set for Air Force induction. The fifth-generation AMCA stealth fighter is also on track, with a prototype expected around 2030.

Given these domestic advancements, questions arise about the prudence of investing billions in foreign jets when Indian alternatives will be operational within a similar timeframe. Russia’s offer of its Su-57E fighter with full technology transfer presents another complex strategic choice, though India’s preference leans towards building its own strength. The government is actively encouraging Hindustan Aeronautics Limited (HAL) and private players to enhance production and establish a robust defense manufacturing ecosystem, signaling a decisive shift towards ‘Make in India’ for its aerial defense needs.

India currently lacks a fifth-generation stealth fighter jet. The SU-57E could fill this gap. A key strength of this aircraft is its ability to carry the Russian advanced hypersonic missile 3M22 Zircon, which could offer a potent combination for India.

This missile flies at Mach 9 (approximately 9,600 km/h), making it nearly impossible for any existing air defense system to intercept. Furthermore, it will also be capable of carrying the BrahMos missile, jointly developed by India and Russia.

If the deal goes through, India will gain a strong response to the long-range strike capabilities of China and the aerial challenges posed by Pakistan. The SU-57E, equipped with the Zircon missile, would provide the Air Force with the ability to decisively strike both ground and sea targets.

This deal could prove beneficial for Hindustan Aeronautics Limited (HAL), both economically and strategically. Russia has offered India full technology transfer (ToT), joint production, and integration of Indian systems.

* HAL will have the opportunity to learn fifth-generation stealth technology and supercruise capability.
* Production of the SU-57E could begin at the Nashik plant, where the SU-30MKI is already being manufactured. This would give India a significant advantage for this system.
* Reports suggest that 2030 aircraft will come directly from Russia, while the rest will be manufactured by HAL. This will help India complete its squadron shortfall (less than 30).
* It will generate thousands of jobs and could also give India the opportunity to export these aircraft in the future.

Local production of the SU-57E is expected to be significantly cheaper than Western aircraft like the F-35. HAL will handle maintenance and upgrades, ensuring long-term revenue.

However, there are potential challenges to this deal, including the risk of US sanctions like CAATSA, engine maturity, and issues related to the previous FGFA project. Despite this, these challenges are considered manageable, given Russia’s flexible stance and HAL’s existing capabilities.

If India finalizes this deal, it would join the ranks of select countries with air-launched hypersonic weapon systems. This would not only enhance the Air Force’s strike capabilities but also strengthen India’s position in the Indo-Pacific power equation.

Under this project, valued at approximately ₹62,700 crore, HAL will commence deliveries from 2027-28. A total of 156 Prachand helicopters will be manufactured, with 90 designated for the Army and 66 for the Air Force.

Seven new systems are to be included in the new series production LCH:

* Indigenous air-to-ground missiles.
* Laser-guided rockets.
* Advanced electronic warfare systems.
* Nuclear detection capabilities.
* Data link (for secure communication).
* Obstacle avoidance system.
* Directed Infrared Countermeasures.

Furthermore, upgrades such as electro-optical pods and helmet-mounted pointing systems will improve pilot efficiency and targeting capabilities.

Currently, 15 Limited Series Production (LSP) Prachand helicopters have been delivered to the Army and Air Force. These are equipped with air-to-air missiles, rockets, and turret guns.

The LCH is capable of operating at altitudes exceeding 5,000 meters and is designed for missions such as neutralizing enemy air defense systems, shooting down drones and slow-moving aircraft, destroying bunkers, counter-terrorism operations, and supporting ground troops.

This project will involve over 250 Indian companies and generate more than 8,500 employment opportunities. The helicopters will be manufactured at HAL’s Tumakuru factory (Karnataka), which is India’s largest helicopter factory, capable of producing 30 helicopters annually, with the potential to increase production to 100 if required.

The LCH is among the defense platforms subject to import restrictions imposed by the government. To date, imports of 509 defense equipment items have been restricted. Over the past few years, the government has implemented measures to promote indigenous defense production, including phased import restrictions, a separate budget for domestic defense procurement, increasing the FDI limit to 74%, and improving ease of doing business. In the coming years, the Prachand will be a cornerstone of the Indian Army and Air Force, and a major symbol of the country’s self-reliant defense capabilities.

According to HAL sources, several firing tests of the Tejas Mk-1a will be conducted this month, September, before delivery. These tests will include firing the Astra Beyond Visual Range missile, the ASRAM short-range missile, and laser-guided bombs. The Tejas Mark 1A will be handed over to the Indian Air Force only after these tests are successful. Previous tests had mixed results, with one success and one failure, necessitating software modifications.

Approximately 38 Tejas aircraft are already in service, with another 80 currently under manufacture. In February 2021, the Ministry of Defence finalized a deal with HAL for 83 Tejas Mark-1A aircraft, valued at ₹48,000 crore. Delays in the delivery have primarily stemmed from the inability of US defense company GE Aerospace to meet deadlines for the supply of engines for these aircraft. Recently, the government approved an additional batch of 97 Tejas fighter aircraft, at a cost of approximately ₹67,000 crore. HAL is expected to have a four to five-year order book. Efforts will be made to enhance the platform, integrate radar, and incorporate Indian weapons to make it a valuable asset alongside the Sukhoi. The single-engine Mk-1A will replace the Indian Air Force’s MiG-21 fighter jets. The Indian Air Force is considering including these fighter aircraft as its fighter squadrons have decreased from the officially sanctioned 42 to 31.