India has formally issued Requests for Proposal (RFPs) for the Advanced Medium Combat Aircraft (AMCA) program to three private sector consortia, marking a historic shift in fighter jet manufacturing by creating a parallel ecosystem outside Hindustan Aeronautics Limited (HAL).
This move is expected to accelerate indigenous fifth-generation stealth fighter development, expand production capacity, and strengthen India’s defence self-reliance.
The RFPs have been issued to three shortlisted bidders: TATA Advanced Systems Limited (TASL), a consortium of Larsen & Toubro (L&T) and Bharat Electronics Limited (BEL), and another consortium comprising Bharat Forge and BEML.
In some reports, these consortia also include partners such as Dynamatic Technologies and Data Patterns, reflecting the government’s intent to bring diverse private sector expertise into the program. This marks the first time HAL has been excluded from the prototype development stage of a frontline fighter jet project, signalling a decisive policy pivot towards private sector-led execution.
The AMCA program is India’s proposed fifth-generation stealth fighter project, regarded as a cornerstone of the country’s long-term indigenous defence ambitions. The winning bidder will collaborate with the Aeronautical Development Agency (ADA) under the Defence Research and Development Organisation (DRDO) to design and manufacture five flying prototypes and one structural test airframe.
Prototype development and integration work is expected to take place at a new greenfield aerospace facility in Andhra Pradesh, which will serve as a dedicated hub for next-generation fighter jet manufacturing. This facility will host advanced stealth aircraft assembly, systems integration, and flight testing capabilities, which India has not previously established in the private sector.
Officials and industry stakeholders view this development as a critical step towards creating an additional fighter aircraft production line in India. By opening the door for private sector participation, the government aims to expand long-term manufacturing capacity, improve delivery timelines, and strengthen supply-chain resilience.
Defence experts believe that parallel production capabilities will be vital for future force preparedness and squadron expansion, especially given the Indian Air Force’s plans to induct around 120 AMCA aircraft in phases by the mid-2030s.
The inclusion of private sector players such as TASL, L&T, BEL, Bharat Forge, and BEML is expected to bring advanced engineering capabilities into India’s aerospace sector. Wider industrial participation could accelerate domestic expertise in avionics, advanced materials, sensors, precision manufacturing, and aerospace systems integration.
This will also reduce long-term dependence on foreign suppliers for critical aerospace technologies and platforms, aligning with the Atmanirbhar Bharat vision.
Large-scale fighter aircraft programs typically generate spill over growth across sectors such as metals, electronics, software, testing infrastructure, and advanced manufacturing. The AMCA program is expected to create significant employment opportunities in high-skill areas including aerospace engineering, avionics, metallurgy, composites, and robotics.
Officials estimate that thousands of jobs will be generated, with local academic institutions and small-scale industries playing a key role in strengthening supply chains.
The government has fully funded the prototype phase, with the project valued at approximately ₹15,000 crore. The execution model was approved by Defence Minister Rajnath Singh last year, offering equal opportunities to both public and private sectors on a competitive basis.
While HAL has been excluded from the prototype stage, it is expected to compete in the larger production tender once the jet successfully completes testing and development. This dual-track approach ensures that India’s established aerospace expertise is not side-lined, while simultaneously fostering new private sector-led capabilities.
If executed as planned, the AMCA manufacturing program could emerge as one of the most important milestones in India’s defence self-reliance journey. It represents not only a technological leap in stealth fighter development but also a structural transformation in India’s military aviation manufacturing ecosystem, paving the way for a second fighter jet production line beyond HAL.
Agencies
