In a landmark decision aimed at strengthening India’s self-reliance in defence manufacturing, the Narendra Modi-led government has approved the execution model for the Advanced Medium Combat Aircraft (AMCA) programme. Under this model, Hindustan Aeronautics Limited (HAL), India’s state-owned aerospace and defence company, will no longer be the default production agency. Instead, it will need to compete for the contract alongside private sector firms.
The decision, approved by Defence Minister Rajnath Singh, is part of a broader push to boost indigenous defence capabilities and to create a more vibrant and competitive domestic aerospace industry.
The programme will be executed by the Aeronautical Development Agency (ADA) through a collaborative industry partnership model. According to a statement from the Ministry of Defence, “The Execution Model approach provides equal opportunities to both private and public sectors on a competitive basis. They can bid either independently or as joint ventures or as consortia.” The statement also emphasised that eligible bidders must be Indian companies in compliance with domestic laws and regulations.
This move signals a major shift from the traditional approach, where HAL would have automatically been considered the production agency, often partnering with private companies only for the supply of components and subassemblies. Now, no single entity—including HAL—will be granted preferential status. All interested parties must submit competitive bids to secure the production rights.
Sources within the defence establishment said that HAL can bid as a solo entity or as part of a consortium with private companies. Likewise, private firms such as Tata, Adani, and L&T can also submit bids independently or in collaboration with each other or with HAL.
This policy change is a significant departure from past practices and is designed to encourage broader participation and innovation in India’s defence sector. It also aims to accelerate the development and manufacturing timeline of the AMCA project, India's indigenous fifth-generation fighter jet.
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“ADA will shortly issue an Expression of Interest (EoI) for the AMCA Development Phase,” the Ministry of Defence confirmed.
According to the proposed timeline, the first prototype of the AMCA is expected to be unveiled by 2031, with full-scale series production targeted to begin by 2035. “We have fixed a 10-year timeline starting today. After the prototype is developed, we plan to initiate series production, likely from 2035 onwards,” a source familiar with the programme said.
The competitive bidding model is intended to ensure the selection of the most capable and efficient industrial partner, speeding up the overall development and reducing the reliance on any single entity. This approach also addresses longstanding criticisms about delays in earlier indigenous programmes, particularly the HAL-developed Tejas light combat aircraft.
“There has been significant criticism about HAL’s pace in executing the Tejas programme,” a source noted. “Now, private firms like Tata, which is already working with Airbus to manufacture C-295 military transport aircraft in India, are ready to take on major roles. They are already producing components for global fighter aircraft. This is the first time they have a chance to bid for an indigenous fighter programme of this scale.”
The strategic push for AMCA also comes amid growing regional security concerns. Reports suggest that China is fast-tracking the delivery of its fifth-generation J-35A fighter jet to Pakistan, which could widen the technological gap between the Indian Air Force (IAF) and its adversaries. While India maintains numerical superiority in terms of fighter aircraft, Pakistan is fielding a larger share of 4.5-generation fighters.
Adding to the strategic challenge, China unveiled two aircraft last December—Chengdu J-36 and Shenyang J-50—which are being touted as sixth-generation fighters.
Sources declined to comment on whether India is considering limited procurement of foreign fifth-generation fighters such as the U.S.-made F-35, which has not yet been formally offered. For now, the focus remains firmly on the indigenous AMCA programme, which has become a central component of India’s long-term defence strategy.
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