In a significant policy shift, the Indian government has approved the new model for implementing the Advanced Medium Combat Aircraft (AMCA) project. This marks a departure from the traditional dominance of the state-run Hindustan Aeronautics Limited (HAL) in fighter jet manufacturing. Under the new model, HAL will have to compete with private companies like Tata, Adani, and L&T for the AMCA contract. If HAL fails in the bidding process, a private player could lead the project—a major transformation in India's defense procurement approach.

The new competitive model offers equal opportunities to both public and private entities, encouraging bids either individually or as consortia. This is intended to break HAL’s past monopoly, which has been criticized for repeated delays, notably with the Tejas fighter jet project. The Ministry of Defence emphasizes transparency, stating that any Indian-registered company complying with national laws can participate. The government will soon release an Expression of Interest (EOI), and only bidders who commit to the project’s strict timeline will qualify.

According to the timeline, five prototypes of AMCA should be ready by 2031, with mass production starting in 2035. The Indian Air Force (IAF) plans to induct seven squadrons of this fifth-generation stealth fighter. This urgency arises amid growing threats: China is fast-tracking its J-35 stealth jets to Pakistan, potentially increasing the capability gap between India and its neighbors.

India’s AMCA project began in the early 2000s when the country recognized the need for an indigenous fifth-generation stealth fighter to replace aging fleets like the MiG-21 and Mirage 2000. Initially, India explored collaboration with Russia’s Su-57 program but withdrew in 2018 due to cost and technology transfer concerns. This pivoted AMCA into a fully indigenous project under the Aeronautical Development Agency (ADA) and the Defence Research and Development Organisation (DRDO).

The project faced technical and financial hurdles, including the lack of a suitable indigenous engine. The planned Kaveri engine had setbacks, forcing India to opt for General Electric’s F414 engine for initial prototypes. This reliance on foreign components raised concerns about India’s strategic autonomy.

Despite delays, design and wind tunnel testing progressed, and partnerships with private companies like Tata Advanced Systems have been initiated. On May 27, 2025, the government approved the Special Purpose Vehicle (SPV) model to accelerate development and reduce costs. The first prototype is now targeted for 2028.

China's rapid strides in stealth aviation—especially with the Chengdu J-20 and Shenyang J-35—have added urgency to India's plans. Satellite images show China stationing J-20s near Indian borders, raising strategic tensions, particularly in Ladakh.

The AMCA initiative could finally energize India’s sluggish defense manufacturing, fostering public-private collaboration. The inclusion of private players, although late, may speed up progress significantly. Ultimately, the company that best meets cost, timeline, and quality benchmarks—be it HAL or a private consortium—will be awarded the contract.

This new policy may reshape India’s defense aviation landscape and provide a long-awaited technological edge to the Indian Air Force.