The Defence Ministry has intensified focus on strengthening domestic aerospace capabilities by involving the private sector in the development of the indigenous fifth-generation Advanced Medium Combat Aircraft (AMCA).
To facilitate this, the Ministry of Defence has set up a high-level committee under Defence Secretary Rajesh Kumar Singh to explore avenues for increased private sector participation in the AMCA project, defence officials said. The committee includes representatives from the Indian Air Force (IAF) and Hindustan Aeronautics Limited (HAL), the state-owned aerospace manufacturer.
The government is considering multiple models to enhance private sector involvement. One proposal is a joint venture between HAL and a private firm, while another approach focuses on engaging private companies for design and development, leveraging HAL’s extensive experience in aerospace manufacturing.
At present, the Tata Group is the only private Indian firm with experience in aircraft integration, working alongside Airbus to assemble C-295 transport aircraft in India. However, HAL has already outsourced significant components of jet manufacturing to private companies such as L&T, Godrej, and Azad Engineering.
The AMCA, designed by the Aeronautical Development Agency (ADA) for the IAF, was showcased at Aero India 2025 in Bengaluru earlier this month. The 25-ton aircraft will feature advanced artificial intelligence (AI)-powered capabilities, including multi-sensor data fusion for enhanced situational awareness, an automatic target identification system, and a combined vision system for navigation in low-visibility conditions.
According to the ADA, integrating AI in the AMCA will significantly enhance operational efficiency, positioning the aircraft as one of the most advanced fifth-generation fighters in the world.
