Defence Minister Rajnath Singh has approved a new execution model for India’s Advanced Medium Combat Aircraft (AMCA) program, marking a significant milestone that will revolutionise the nation’s strategy for building up its own military aviation capabilities.
The historic ruling, which was made public on May 27, 2025, ends the long-standing monopoly of Hindustan Aeronautics Limited (HAL) in the production of combat aircraft and opens up the bidding process to both public and private sector companies. With large conglomerates like Larsen & Toubro, TATA Group, and Adani Group positioned to play important roles in creating the country’s first fifth-generation stealth fighter, the new framework reflects a strategic turn towards exploiting India’s growing private defense industrial base.
The acceptance of the execution model coincides with a critical moment in the world’s fifth-generation fighter competition, as China is testing sixth-generation prototypes and Pakistan is purchasing Chinese J-35A fighters, making India’s development of its own stealth capabilities more important than ever. A new era of public-private cooperation aimed at attaining self-reliance in vital defense technology and promoting a strong domestic aerospace ecosystem is heralded by this extensive overhaul of India’s aerospace development strategy.
The authorized execution methodology marks a significant shift from India’s conventional defense manufacturing strategy, in which direct project assignments without competitive bidding procedures have traditionally been given to state-owned Hindustan Aeronautics Limited (HAL). The Aeronautical Development Agency (ADA) will implement the AMCA program through industrial collaborations under the new framework, with both public and private sector organizations vying for development contracts on an equal basis.
As long as they are Indian corporations that abide by local rules and regulations, businesses may take part separately, in joint ventures, or as consortia. Regardless of whether an organization is public or private, this competitive method seeks to acquire development contracts for the most qualified companies while utilizing indigenous expertise, aptitude, and capacity.
As worries about the state-owned manufacturer’s delivery history and capacity limitations develop, HAL’s monopoly position is being abandoned. According to defense officials, HAL is already overburdened with overseeing several ongoing projects, such as the 83 Light Combat Aircraft (LCA) TEJAS Mk-1A jets that are currently in production, the 97 jets that the defense ministry recently approved, and the four TEJAS MK-2 prototypes that are expected to take off in early 2026.
Due to these capacity constraints and delivery issues, ADA had been pushing for private sector participation in the AMCA project, but HAL first opposed giving up its hegemony by suggesting assembly lines specifically for AMCA manufacturing. After several rounds of deliberation, the ministry decided to provide private players equal opportunities, putting efficiency and competitiveness ahead of conventional structures.
India’s defence procurement policy has seen a substantial transformation with the adoption of the industrial partnership model, shifting from a special purpose vehicle method originally intended for AMCA development to a more inclusive competitive framework. The competitive bidding procedure will be formally started when the Aeronautical Development Agency issues an Expression of Interest (EoI) for the AMCA development phase. Major private defense contractors that have been developing skills in aerospace and defense manufacturing, such as the Kalyani Group, Larsen & Toubro, TATA Group, and Adani Group, are anticipated to be drawn to this strategy. Private companies will play far bigger roles in the development of combat aircraft than in Indian defense history, even if successful enterprises involve HAL in joint ventures or consortia.
Private businesses, who were previously restricted to producing parts and components for projects like the Light Combat Aircraft Tejas in collaboration with HAL, can now vie for primary development contracts thanks to the competitive structure. By utilizing the technological prowess and agility of the private sector, this shift promises to promote innovation, increase efficiency, and shorten development timetables. The execution model’s focus on Indian company compliance maximizes indigenous industrial participation while guaranteeing that strategic control stays inside national borders. The administrative stability required to carry out this important policy change was made possible by the decision to extend DRDO chief Samir V. Kamat’s term by one year, till May 2026.
India’s ambitious quest to join the select group of countries with fifth-generation stealth fighter capabilities—which already includes the US, Russia, and China—is symbolized by the Advanced Medium Combat Aircraft. With its sophisticated stealth features, the 25-ton twin-engine AMCA can avoid enemy radar detection by emitting minimal electromagnetic signature emissions. Together with cutting-edge sensors and weaponry, this stealth capability gives the aircraft the “first look, first kill” advantages and super-cruise capabilities necessary for contemporary air combat situations. Two versions of the aircraft are under development; the Mark-2 will have more potent engines and more advanced technology than the original.
The development program adheres to a thorough 10-year plan that was approved by the Cabinet Committee on Security in April 2024. It has explicit accountability provisions that mandate that any delays or cost overruns be reported directly to the CCS rather than the defense ministry. The initiative aims to create five AMCA prototypes, each expected to cost over ₹1,000 crore ($115 million), for rigorous flight testing and weapons evaluation.
The first prototype is expected to be finished by the end of 2027, and its first flight is anticipated for 2028. Subsequent prototypes will undergo methodical testing phases. The cost of the initial prototype is considerable because of the advanced technology being used, but once serial manufacturing starts in 2034, costs are expected to drop significantly, maybe to less than $100 million per unit.
According to the Indian Air Force’s modernization roadmap, the indigenous fighter will be a key component of future air warfare strategies when roughly seven squadrons of AMCA aircraft are introduced starting in 2035. In order to guarantee that operational aircraft fulfill strict performance and reliability requirements before to going into service, this deployment schedule corresponds with the anticipated completion of the development and testing phases. The AMCA is a flexible platform that may be used for a variety of mission needs because of its design, which combines both air-to-air and air-to-surface combat capabilities. The aircraft is at the vanguard of aerial warfare technology thanks to its sophisticated avionics, sensor fusion, and AI-driven combat capabilities, which will guarantee its usefulness in future combat situations.
The AMCA will become one of the most affordable fifth-generation fighters in the world thanks to the substantial economies of scale that the serial production phase promises, increasing its export potential and bolstering India’s expanding aspirations in defense manufacturing. It is anticipated that the simplified manufacturing procedures created during the competitive bidding stage will further maximize production effectiveness and lower lifecycle expenses. India’s Atmanirbharta (self-reliance) goals are supported by the program’s concentration on indigenous development, which also creates domestic technological skills that can be used for upcoming aerospace projects. If the AMCA program is implemented well, India will become a major player in the global market for fifth-generation fighters and lessen its reliance on importing military aircraft from other countries.
The acceleration of the AMCA program takes place in a strategically difficult environment that is marked by changing global military aviation landscapes and regional conflicts. Modern platforms like the Rafale planes play important roles in modern military operations, as evidenced by the recent Operation Sindoor, which highlighted the vital relevance of superior fighter aircraft capabilities. The necessity of creating domestic stealth capabilities is highlighted by China’s testing of sixth-generation prototypes, such as the J-36 and J-50 created by Chengdu Aircraft Corporation and Shenyang Aircraft Corporation, respectively, and Pakistan’s purchase of Chinese fifth-generation J-35A fighters. These changes underscore India’s strategic need to maintain operational independence from foreign suppliers while achieving technological parity with regional rivals.
The Russian Su-57 Felon and the American F-35 Lightning II are two well-known platforms that compete fiercely in the worldwide fifth-generation fighter market. Each system represents a distinct technological approach and strategic philosophy. Long-term strategic thinking focused at preserving technological sovereignty and establishing domestic industrial capabilities is reflected in India’s choice to create its own capabilities rather than acquiring foreign systems. The success of the AMCA program will place India alongside major aerospace countries and lay the groundwork for the development of advanced military aviation in the future. Indian forces will have cutting-edge technology advantages in future conflicts thanks to the integration of artificial intelligence, sophisticated sensor fusion, and network-centric fighting capabilities.
For India’s quickly growing private defense industry, the conversion of AMCA development from a conventional government-controlled program to a competitive industry partnership model opens up hitherto unheard-of potential. Large industrial conglomerates with the manufacturing infrastructure, financial resources, and technological know-how to successfully compete for AMCA development contracts include Larsen & Toubro, TATA Group, Adani Group, and Kalyani Group. Through strategic acquisitions, technological alliances, and domestic research and development investments, these corporations have been methodically enhancing their aerospace and defense capabilities, putting them in a position to make a substantial contribution to cutting-edge military aircraft programs. Regardless of private or public ownership, the competitive bidding procedure guarantees that the best-qualified organizations will be awarded development responsibilities based on their technical excellence and execution skills.
Private sector involvement has economic ramifications that go well beyond the AMCA program itself, laying the groundwork for long-term expansion of India’s aerospace industry. Compared to traditional government-owned businesses, private corporations usually exhibit better agility in establishing efficient production processes, meeting delivery deadlines, and adopting new technologies. The Indian aerospace industry will benefit from faster knowledge transfer, skill development, and industrial capability building as a result of the participation of several rival companies in AMCA development. With five prototypes planned and anticipated prototype costs of ₹1,000 crore each, the program offers participating companies huge investment options in addition to creating major job and technological advancement potential.
The creation of an extensive aerospace industrial ecosystem that includes innovative materials, precise manufacturing, avionics, and propulsion systems will be accelerated by the AMCA program’s industry cooperation concept. Participation from the private sector guarantees the implementation of state-of-the-art project management techniques, quality control systems, and manufacturing technologies throughout the development process. The AMCA program as well as upcoming aerospace programs, such as advanced defense platforms, space systems, and civilian aircraft, will gain from the competitive framework’s encouragement of innovation and efficiency gains. Many industrial sectors will benefit from the technology and knowledge created during AMCA production, improving India’s overall manufacturing capacity and export competitiveness.
The effective application of the industry partnership model could change India’s approach to strategic technology development in a number of areas and set standards for key defense programs in the future. While adhering to strict security and quality standards, the focus on Indian company participation guarantees that technological skills, manufacturing expertise, and intellectual property stay within the domestic industrial base.
Due to the program’s size and complexity, advanced supply chain networks, quality control systems, and project management skills must be developed. These will be national assets for upcoming aerospace initiatives. The anticipated cost decrease for aircraft in serial production from $115 million per prototype to less than $100 million shows the financial advantages of competitive development and effective manufacturing techniques.
The AMCA program confronts significant implementation issues that call for careful management and ongoing commitment from government and industry stakeholders, notwithstanding the new execution model’s strategic relevance and potential advantages. Since several organizations must work together efficiently while preserving proprietary technologies and competitive advantages, the shift from HAL’s monopolistic strategy to competitive bidding creates coordination challenges. Even the most seasoned aerospace firms are challenged by the highly complex technological capabilities, sophisticated manufacturing techniques, and stringent testing procedures required for the production of fifth-generation fighter aircraft. Despite the focus on domestic development, the integration of stealth technologies, sophisticated avionics, and artificial intelligence systems calls for skills that can call for ongoing government funding and international technology alliances.
Due to the program’s aggressive schedule, which calls for first prototype completion by 2027 and maiden flight by 2028, design agencies, manufacturing partners, and testing organizations must work together like never before. Maintaining deadlines while fulfilling performance requirements is a considerable problem, according to historical experience with complex defense programs. This is especially true when integrating new competitive frameworks and private sector partners. Awareness of these dangers and a commitment to upholding accountability throughout the development process are demonstrated by the Cabinet Committee on Security’s mandate that cost overruns and delays be directly acknowledged. Although AMCA development can benefit from the experience and infrastructure gained from the successful completion of the TEJAS program, the technological complexity of fourth- and fifth-generation aircraft poses whole new difficulties.
The success of the AMCA program will position India as a significant force in the global aerospace industry and lay the technological groundwork for upcoming programs involving advanced military aviation. Beyond the short-term program requirements, the competitive development model establishes long-term frameworks for ongoing innovation and industrial expansion. A hybrid strategy that optimizes technical innovation while retaining strategic control over vital defense capabilities is the combination of government research and development resources with private sector capabilities. Balanced approaches to technology acquisition and industrial development are produced by the program’s concentration on domestic development while keeping its doors open to international cooperation for particular technologies.
India will gain cutting-edge military capabilities and exhibit technological maturity with the effective deployment of AMCA aircraft, which will expand prospects for international defense cooperation. Cost-effective fifth-generation fighters created through competitive methods have the potential to be exported, creating substantial cash streams and fortifying strategic alliances with allies. The technological ramifications of AMCA development will support space programs, advanced manufacturing industries, and civilian aerospace capabilities, all of which propel overall economic expansion. While guaranteeing that India retains state-of-the-art capabilities across several key technology sectors, the creation of competitive frameworks for major defense programs would promote ongoing private sector investment in research and development.
A turning point in India’s defence industrial policy, the acceptance of the AMCA execution model signifies the shift from government-monopolised aircraft development to competitive, merit-based industry collaborations. The conventional monopoly held by HAL is broken by this paradigm shift, which also opens up hitherto unheard-of possibilities for private sector involvement in key defense initiatives. Through competitive bidding processes that prioritize technical capacity and execution efficiency, the new framework guarantees that the most competent companies, irrespective of ownership structure, can participate to the development of India’s first indigenous fifth-generation stealth fighter.
This decision’s strategic timing—amid escalating regional competition and worldwide military aviation technology advancements—showcases India’s dedication to attaining self-reliance in vital defense technologies.
The successful deployment of the AMCA program will provide domestic industrial capacity for future aerospace advances and place India alongside the US, Russia, and China as countries with sophisticated stealth fighter capabilities. Realistic timelines for creating and testing advanced technologies while satisfying Indian Air Force modernization goals are provided by the planned timeframe, which calls for the first flight by 2028 and operational deployment starting in 2035.
The industry collaboration model’s economic and industrial ramifications go well beyond the AMCA program itself, laying the groundwork for the aerospace sector in India to grow steadily and producing a large number of job and technology progress opportunities.
While guaranteeing that vital capabilities continue to be under national control, the competitive framework promotes innovation, efficiency gains, and technology transfer that will benefit several industrial sectors. The program’s success will help India become a significant aerospace power in the twenty-first century by showcasing to foreign partners its industrial prowess and technological maturity while building credibility for potential defense exports.
