Source : Indian Defence Updates (IDU)

MoD India want to market Tejas Mk2 as an effective alternative to Mig-29, Mirage-2000 and Older F-16s in the export market

The Ministry of Defence has specifically instructed Hindustan Aeronautics Limited (HAL) to reduce the man-hour cost in the production of the Tejas Mk2 aircraft to reduce the per unit cost of the aircraft as 16 countries have expressed interest in the program to replace their MiG-29, Mirage 2000 and older F-16.

The Aeronautical Development Agency (ADA) and Hindustan Aeronautics Ltd (HAL) are working out details to increase indigenous content from 75 to 90% that includes local manufacturing of F-414 engine, most of the wearable components of the engine will be manufactured in India while some of the proprietary hot core section will remain with the General Electric but further collaboration is possible for manufacturing of the engine from the raw material stage.

The Tejas Mk2 was expected to cost 40% more than the baseline variant of the Tejas Mk 1A but now with more indigenous content the per unit cost will fall further making it one of the most affordable 4.5th generation Medium Weight Fighter (MWF) in its segment, talks have also started with the private sector companies to establish a new production line especially for export Market.