India's new defence model: Private sector can bid to make 5th-gen stealth fighter jet

India has approved a new plan for building its fifth-generation stealth fighter jet, the Advanced Medium Combat Aircraft (AMCA), allowing private companies to join the project along with state-run Hindustan Aeronautics Limited (HAL).

The model, cleared by Defence Minister Rajnath Singh, aims to speed up the jet’s development by involving more players from India’s aerospace industry, breaking from the tradition of only HAL making fighter jets.

The Aeronautical Development Agency (ADA), which is part of DRDO and will design the aircraft, will lead the project through partnerships with industry. An expression of interest for the AMCA development phase will be issued soon, the defence ministry said.

The Ministry of Defence (MoD) has decided that Hindustan Aeronautics Ltd (HAL) will not be the only company to produce the AMCA, which was designed by DRDO’s Aeronautical Development Agency (ADA).

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Called the "Advanced Medium Combat Aircraft (AMCA) Programme Execution Model," the MoD said on Tuesday that companies can bid to join the project on their own, or as partners in joint ventures or groups. This way, ADA can choose a production partner.

With the new approval, Indian companies can now bid alone or as part of a group to work on different parts of the AMCA fighter jet project. The Aeronautical Development Agency (ADA) is likely to release an Expression of Interest (EoI) soon to invite industry participation.

India’s confidence in building the AMCA grew after the success of the Light Combat Aircraft (LCA) Tejas. Last year, the Cabinet Committee on Security, led by Prime Minister Narendra Modi, gave its initial approval for the project.

The urgency around the AMCA project has increased after Operation Sindoor and growing tensions with China, which already uses its fifth-generation J-20 fighter jet. Reports also say China is planning to supply 40 J-35 jets to Pakistan.