DRDO chief G Satheesh Reddy lauded the government after HAL bagged the contract to manufacture 83 Tejas LCA.
Reddy added that that will be giving a major boost to the aeronautics of the country.
Calling the decision 'historical', Reddy said it will pave the way for development of new aircraft.
"83 LCA order from IAF is the single largest order ever as far as the number is concerned.
LCA Tejas Mark-1A aircraft is supposed to replace Mirage and Jaguar aircraft.
Rafale is a different class of aircraft but LCA too has advanced technological features," he said.
The Defence Ministry handed over the contract on Wednesday at Aero India air show in Bengaluru.
Hindustan Aeronautics Limited is likely to produce the first LCA Mark 1A aircraft by 2023.
The LCA Mark 1A is the advanced version of Tejas fighter aircraft.