India is accelerating the development of its Advanced Medium Combat Aircraft (AMCA) stealth fighter, opening the project to private companies due to delays and fighter jet shortages. This move aims to counter China's stealth capabilities and address the IAF's need for advanced aircraft.
Around three weeks after a tense military face-off with Pakistan, India has fast-tracked the development of its fifth-generation stealth fighter jet, the Advanced Medium Combat Aircraft (AMCA).
In a significant shift, the government has opened up the AMCA project to private Indian companies, breaking the long-standing norm that only state-run Hindustan Aeronautics Ltd (HAL) could manufacture fighter jets.
Why stealth fighters are urgent
India currently lacks any stealth aircraft, while China’s radar-evading J-20 jets are already operational and its sixth-generation J-36 is under development. According to claims in Pakistan’s local media, the country may acquire up to 40 J-35 stealth jets from China as early as 2026.
The Indian Air Force (IAF) is facing a fighter jet shortage. It has just 31 squadrons, far below the sanctioned strength of 42. The delayed replacement of ageing MiG-21s with Tejas aircraft has only worsened the situation.
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Even with the addition of 36 Rafale jets from France, India trails its neighbours. In case of a two-front conflict, stealth jets will be key to striking deep into enemy territory without being detected.
What about the F-35 offer?
The push for AMCA also gained urgency after US President Donald Trump said the US may offer India its F-35 stealth jets, among the most advanced globally.
But with each F-35 costing Rs 660–825 crore (USD 80–100 million), India sees AMCA as a more cost-effective and strategic alternative if the timeline is met.
Defence Minister Rajnath Singh approved the AMCA prototype on 27 May, calling it a major step toward defence self-reliance.
Private players now in the game
HAL is already busy with several major orders. It’s producing 180 Tejas Mark-1A jets in a Rs 1.2 lakh crore deal and is lined up to build 108 Tejas Mark-2 jets and other aircraft.
To ease the load, the Defence Ministry hopes HAL will collaborate with private firms for AMCA. But for the first time, private players will also be allowed to bid independently, jointly with other Indian firms, or with foreign companies, provided they meet defence rules.
The Aeronautical Development Agency (ADA), which is designing AMCA under DRDO, will soon invite these companies to submit proposals.
The private sector is already expanding its role. Tata Group, for instance, is building C-295 aircraft with Airbus in Gujarat and setting up India’s first private helicopter assembly line in Karnataka.
Why the IAF chief criticised HAL
Earlier this year, IAF Chief Air Marshal AP Singh strongly criticised HAL for delays in the Tejas programme.
“Tejas was conceptualised in 1984, its first flight took place in 2001, and induction began only in 2016. Even today, in 2025, I don’t have the first 40 aircraft,” he said at a Delhi defence seminar.
Currently, the IAF operates just two squadrons of Tejas Mark-1 jets. The upgraded Mark-1A version has also been delayed. HAL had committed to deliver 16 jets in 2024–25 under a Rs 46,898 crore contract signed in 2021. Now, only 2–3 are expected this year, mainly because GE (USA) delayed engine supplies.
GE has now promised to deliver 99 F404 engines by March 2025. HAL and GE are also finalising a Rs 8,300 crore (USD 1 billion) deal to co-produce the more powerful F414 engines in India with 80% technology transfer. These will be used for Tejas Mark-2.
Despite setbacks, the Indian government has placed a fresh order for 97 more Tejas Mark-1A fighters worth Rs 67,000 crore.
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