Hindustan Aircraft Ltd. (formed in 1940) was amalgamated with Aeronautics India Ltd. (formed 1963) to establish Hindustan Aeronautics Ltd. in October 1964. Hindustan Aircraft designed and built the first indigenous Indian aircraft, the Hindustan HT-2 two-seat trainer, which first flew in 1951 and was produced for the Indian Air Force and civilian flying clubs. The HUL-26 Pushpak high-wing lightplane, based on the American Aeronca Chief, entered production in 1959, the HAOP-27 Krishak derivation being manufactured as a liaison aircraft for the Indian Air Force and Army. Deliveries of the HAL HJT-16 Kiran two-seat jet trainer began in 1966. The HF-24 Marut single-seat fighter was designed by a team led by Kurt Tank, and deliveries of the Ajeet lightweight jet fighter, developed from the Folland/ Hawker Siddeley Gnat which HAL license-produced, began to the Indian Air Force in 1976. HAL also built the HA-31 Basant agricultural aircraft.

Assembly of Soviet MiG-21 fighters began 1966, with full manufacture from 1970 (production ended). Assembly/ production of Soviet MiG-27M began 1984 (production ended 1994). Assembly/production of the SEPECAT Jaguar International as the Shamsher (first flown March 1982) ended 1998. HPT-32 Deepak two-seat ab initio and basic piston-engined trainer first flown 1977; 134 built for Indian Air Force and eight for Navy to replace HT-2s. Licence manufactured SA-315B Lama and SA-316B Alouette III helicopters as Cheetah and Chetak respectively up to 1998, when production gave way to the indigenously developed Advanced Light Helicopter (first flown August 1992). HAL responsible for manufacture of the ADA Light Combat Aircraft. New HJT-36 turbofan trainer and HTT- 38 turboprop trainer announced for development in 1998. Continuing work on AWACS aircraft. Other work includes overhaul of all Indian Air Force aircraft, together with component manufacture in connection with international aircraft programs and India's space research program.