The Indian government has approved the involvement of private companies in the development of the Advanced Medium Combat Aircraft (AMCA) in a major shift in defence manufacturing policy. The Defence Ministry announced that both public and private sector companies will now be allowed to compete for the opportunity to collaborate with the Aeronautical Development Agency (ADA), which is leading the project. The selection process will be open to Indian firms either individually, through joint ventures, or in consortiums, provided they comply with national regulations.

This development marks a historic departure from India’s past approach, where state-owned Hindustan Aeronautics Limited (HAL) had exclusive rights over indigenous fighter jet production, including the Tejas Light Combat Aircraft. With this new model, private giants such as Tata Advanced Systems, Adani Defence & Aerospace, Larsen & Toubro Defence, and Reliance Defence are likely to bid. The AMCA program was greenlit by the Cabinet Committee on Security in April 2024 with an allocation of Rs158 billion, of which Rs55 billion comes from the Indian Air Force. The Defence Ministry will soon release an Expression of Interest (EOI) to officially start the selection process.

The AMCA is India’s most ambitious military aviation project to date. Designed between 2019 and 2024, the aircraft is envisioned as a stealth-capable, fifth-generation fighter jet powered by twin GE F414 INS-6 engines. The formal development phase is expected to span a decade, with five prototypes planned before entering full production. The Indian Air Force has a target of acquiring 120 units, with the first production aircraft expected to be ready by 2036. This initiative not only boosts indigenous defence manufacturing but also signals India’s push towards technological self-reliance and global competitiveness in aerospace.