"On Feb 4, a MiG-29UPG fighter carried out its first test flight. The flight lasted for an hour and was flawless," MiG said in a statement.
The IAF has awarded the MiG corporation a $900 million contract to upgrade all of its 69 operational MiG-29s.
These upgrades include a new avionics kit, with the N-109 radar being replaced by a Phazatron Zhuk-M radar.
The aircraft is also being equipped to enhance beyond-visual-range combat ability and for air-to-air refueling to increase flying time.
In 2007, Russia also gave India's Hindustan Aeronautics Limited (HAL) a license to manufacture 120 RD-33 series three turbojet engines for the upgrade.
The first six aircraft are being upgraded in Russia while the remaining 63 will be refitted at the HAL facility in India.