Lal took over as the seventh Chief of the Air Staff in 1969. Under his command, the IAF scored a decisive victory against Pakistan in the Indo-Pakistani War of 1971, which led to the creation of Bangladesh in December 1971. He was awarded the Padma Vibhushan and the Padma Bhushan, the second and third highest civilian awards of India. After retiring from the IAF, Lal served as the Chairman and Managing Director (CMD) of Indian Airlines and later Chairman of Air India.