Private sector – Air Marshal's Perspective

June 2, 2025June 2, 2025

675: AMCA PROGRAMME EXECUTION MODEL: A NEW ERA FOR INDIA’S DEFENCE PRODUCTION

My Article published on the EurasianTimes website on 01 Jun 25.

India’s quest for self-reliance in defence technology has reached a pivotal milestone with the approval of the Advanced Medium Combat Aircraft (AMCA) Programme Execution Model on May 26, 2025. This model, greenlit by Defence Minister Rajnath Singh, introduces a collaborative and competitive framework to accelerate the development of India’s first indigenous fifth-generation stealth fighter jet. Designed by the Aeronautical Development Agency (ADA) under the Ministry of Defence, the AMCA is a 25-tonne, twin-engine, multirole stealth aircraft intended to bolster the Indian airpower capabilities by 2035. The new execution model emphasises private sector involvement, international collaboration, and a competitive bidding process, significantly departing from traditional defence procurement practices.

Advanced Medium Combat Aircraft. AMCA is India’s fifth-generation stealth fighter jet program, developed by the Aeronautical Development Agency (ADA) under the Defence Research and Development Organisation (DRDO). Designed as a multirole, twin-engine aircraft, the AMCA aims to replace ageing fleets such as the SEPECAT Jaguar and Mirage 2000, while complementing the Rafale and future Tejas Mk2 in the Indian Air Force (IAF). The 25-tonne, twin-engine AMCA features stealth shaping, internal weapons bays, and advanced sensor fusion. It is intended to excel in air superiority, deep strike, and electronic warfare missions. It will have an advanced avionics suite, Indigenous AESA radar, and potentially AI-based mission systems. The aircraft is envisioned in two phases: Mark 1 with current-generation technologies and imported engines, and Mark 2 incorporating Indigenous sixth-generation features and an Indian powerplant. The AMCA is strategically significant as it will enhance India’s air combat capabilities and reduce reliance on foreign platforms.

Strategic Significance of AMCA. The AMCA is not just a defence project but a strategic lever and India’s entry ticket into the elite club of fifth-generation fighter operators. The AMCA program is critical to countering regional threats, particularly from China and Pakistan. China’s deployment of J-20 and J-35 stealth fighters, with plans to supply 40 J-35s to Pakistan, underscores the urgency of AMCA’s development. The IAF’s modernisation drive, aiming for 42 squadrons by 2035, relies on the AMCA to maintain a technological edge. The collaborative model’s success could position India among the elite nations with fifth-generation fighters, alongside the US, China, and Russia.

Historical Progress: Bottlenecks. The AMCA program was conceived in the early 2010s as a follow-on to the Light Combat Aircraft (LCA) Tejas. However, despite its strategic importance, progress was tepid due to multiple challenges. Initial timelines projected a first flight by 2020 and production by 2025, but these slipped to 2028 and 2038-39 due to funding constraints and bureaucratic delays. The program’s preliminary design phase began in 2015, with CCS approval only in 2024. The Tejas program’s prolonged development (from the 1980s to the late 2010s) is a cautionary tale, highlighting systemic issues in India’s defence ecosystem. The program lacked an empowered governance structure, slow decision-making, and HAL’s overburdened capacity. The absence of an indigenous high-thrust engine has been a persistent hurdle for the program; the Kaveri engine program’s inability to meet requirements forced reliance on foreign engines, delaying self-reliance. India lacked expertise in advanced technologies and high-thrust engines, necessitating foreign collaboration. The withdrawal from the Indo-Russian FGFA project in 2018 due to disagreements over technology transfer forced a fully indigenous approach, increasing technical risks. The new execution model addresses many of these issues by decentralising authority, attracting capital, and professionalising development.

Boosting the AMCA Program

Collaborative Execution Model. Announced on May 26, 2025, the AMCA Programme Execution Model introduces a public-private partnership (PPP) framework, moving away from the traditional reliance on Hindustan Aeronautics Limited (HAL) as the sole manufacturer. The new model proposes a Special Purpose Vehicle (SPV)-based framework, with a private sector partner who will work alongside the Aeronautical Development Agency (ADA), Hindustan Aeronautics Limited (HAL), and the Indian Air Force (IAF). Under this model, the ADA will issue an Expression of Interest (EoI) to public and private entities, allowing them to bid independently or as consortia. The model offers flexibility to include global OEMs as technology partners or equity stakeholders in the SPV. This shift signifies a bold experiment breaking free from India’s traditionally state-dominated defence production ecosystem. It promises to enhance project accountability, bring commercial rigour to execution, and facilitate foreign direct investment and technology infusion. The competitive approach aims to streamline development, reduce costs, and integrate cutting-edge technologies. One of the most progressive steps is to move from a nomination-based to a competitive merit-based selection model. The collaborative model is expected to provide several key benefits to the AMCA program.

Encouraging Efficiency and Speed. By involving private sector firms alongside HAL, the model diversifies the production base, reducing bottlenecks associated with a single manufacturer. Private companies would bring agility, innovation, and financial muscle, which can accelerate manufacturing and delivery timelines. The Ministry of Defence (MoD) has emphasised reducing timelines. Firms will be incentivised to optimise costs and timelines to win bids, reducing the bureaucratic delays that plagued earlier phases of the AMCA program. The Combined Quality Cum Cost Based System (CQCCBS) model will evaluate bids based on technical and financial merits, ensuring high-quality outcomes.

Technology Integration. Including private firms would enable access to advanced manufacturing techniques and expertise in composites, avionics, and AI. The collaboration is expected to enhance the AMCA’s technological edge, aligning it with global fifth-generation standards.

Economic and Industrial Growth. The model would foster a robust domestic aerospace ecosystem, generating employment and technological advancements. By distributing work packages among private firms, the program stimulates investment in infrastructure and skilled workforce development, aligning with India’s “Atmanirbhar Bharat” vision for self-reliance.

Risk Mitigation. The collaborative approach spreads financial and technical risks across multiple stakeholders, reducing the burden on HAL and the government. This is particularly crucial given the program’s history of delays and funding shortages.

Technological Challenges

However, challenges remain. Establishing fighter jet manufacturing facilities requires significant investment, and private firms may face hurdles in acquiring land, infrastructure, and skilled labour. Scepticism persists about their ability to match HAL’s experience, which could lead to initial teething issues. The AMCA’s development involves overcoming significant technological hurdles, particularly in stealth and engine capabilities.

Stealth Technology. Achieving a low radar cross-section (RCS) is critical for the AMCA’s fifth-generation credentials. The AMCA incorporates a twin-tail layout, platform edge alignment, and diverterless supersonic inlet (DSI) with serpentine ducts to conceal engine fan blades. However, refining radar deflection capabilities is essential. India is developing RAM to reduce RCS, with IIT Kanpur’s Anālakṣhya Meta-material Surface Cloaking System (MSCS) enhancing stealth against Synthetic Aperture Radar (SAR). Scaling this technology for industrial production remains a challenge. Stealth design compromises aerodynamics, reducing manoeuvrability. Balancing these aspects requires advanced computational modelling and wind-tunnel testing.

Engine Capabilities. The AMCA’s supercruise and thrust vectoring requirements demand a high-thrust engine, posing significant challenges. India’s lack of indigenous jet engine technology remains a bottleneck. Achieving sustained supersonic flight without afterburners and enabling thrust vectoring for enhanced manoeuvrability requires advanced engine designs. Integrating these systems into the AMCA’s airframe is technically demanding. The Kaveri engine project highlighted the gaps in materials science and manufacturing precision, necessitating foreign expertise.

International Collaboration

The AMCA program’s success hinges on robust private sector and international partners participation. Opening the doors to foreign OEMs and global collaboration is a key differentiator of the new model. Foreign OEMs from Russia, France, the UK, and the US are expected to play a crucial role, particularly in addressing technological gaps. Several roles are envisioned for global partners.

Collaborations ensure technology transfer, critical for building India’s aerospace capabilities. Technology transfer is expected, particularly for stealth shaping, radar-absorbing materials (RAM), advanced avionics, and sensors. Foreign partners can provide expertise in radar-absorbing materials, low-observable designs, and AESA radar systems. The US, with its F-35 program, and Russia, with the Su-57, offer valuable insights, though India’s withdrawal from the Indo-Russian FGFA project in 2018 underscores its focus on indigenous control.

India lacks an indigenous jet engine for the project. The AMCA Mk-1 will use GE Aerospace F414 engines (98 kN), while the Mk-2 requires a 110-120 kN engine. France’s Safran is in advanced talks for co-development, leveraging offset obligations from the Rafale deal. Rolls-Royce has offered to co-design and co-develop, allowing India to retain IP rights. Russia’s expertise in thrust vectoring and the US’s advanced engine technologies are also under consideration. Collaboration with GE (U.S.), Safran (France), or Rolls-Royce (UK) is vital.

Implications for HAL: From Monopoly to Competition

HAL, long seen as India’s defence aviation behemoth, now faces a significant paradigm shift. While HAL will remain a stakeholder in the AMCA program, it will no longer enjoy uncontested leadership. Its role is expected to evolve from sole integrator to collaborator, contributing expertise in production, system integration, and testing infrastructure. This transformation could prove beneficial if HAL adapts proactively. However, the threat of being sidelined if it fails to remain competitive could motivate internal reforms, increase efficiency, and push HAL toward greater innovation and collaboration. Including foreign OEMs and private firms in the AMCA program will have profound implications for HAL.

Shift from Monopoly to Competition. HAL’s role as the default manufacturer is no longer guaranteed. It must now bid alongside private giants, which could challenge its dominance but also push it to improve efficiency and innovation.

Technology Transfer Opportunities. Collaboration with foreign OEMs like Safran (France) and Rolls-Royce (UK) for engine development offers HAL access to advanced technologies. However, HAL must navigate intellectual property (IP) agreements to ensure India retains significant control.

Capacity Constraints. HAL’s current workload strains its resources, including 180 Tejas Mk-1A aircraft and four Tejas Mk-2 prototypes. The competitive model would allow HAL to focus on core competencies like final assembly while outsourcing subassemblies to private firms, potentially alleviating pressure.

Challenges Ahead

While the execution model marks a shift, several hurdles remain.

- SPV Selection & Governance. Choosing the right private partner with financial depth, technical competence, and political neutrality is critical.

- IP Ownership. Managing intellectual property rights, especially with foreign OEMs, will require legal finesse.

- Funding Certainty. The AMCA requires an estimated ₹15,000–20,000 crore for development. Ensuring uninterrupted funding from all stakeholders will be vital.

- Workforce & Skill Gaps. India’s aerospace talent pool must scale up to meet the design, integration, and production demands.

- Export Potential. Safeguards and foreign collaboration agreements should not hinder India from exporting the platform to friendly nations.

Conclusion

The announcement of a collaborative execution model for AMCA on 26 May 2025 could be the inflexion point the program needed. The model addresses historical delays and technological gaps by fostering competition, involving private firms, and leveraging international expertise. While HAL’s role remains pivotal, shifting toward a diversified production base could redefine India’s defence manufacturing landscape. For a nation striving for strategic autonomy, technological self-reliance, and regional superiority, the success of the AMCA is non-negotiable. However, its execution depends on how well India can manage the complex dynamics of competition, collaboration, and capability development. If the SPV model succeeds, it could become the blueprint for all future high-tech defence platforms in India—from UAVs to next-gen submarines.

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Disclaimer:

Information and data included in the blog are for educational & non-commercial purposes only and have been carefully adapted, excerpted, or edited from reliable and accurate sources. All copyrighted material belongs to respective owners and is provided only for wider dissemination.

References:-

Ministry of Defence, Government of India. Press Release: “Collaborative Execution Model for AMCA Programme Announced”, 26 May 2025.

Aeronautical Development Agency (ADA). Overview of the Advanced Medium Combat Aircraft (AMCA) Programme.

Pubby, Manu. “India’s AMCA fighter jet project to get private sector partner.” The Economic Times, May 2025.

Unnithan, Sandeep. “How AMCA Will Shape India’s Future Air Power.” India Today Defence, April 2025.
Raju, R. “Challenges in India’s Military Jet Engine Development.” ORF Occasional Paper No. 404, Observer Research Foundation, 2024.
Joshi, Manoj. “India’s Quest for Strategic Autonomy through Defence Indigenisation.” Centre for Policy Research, 2023.
DRDO Annual Report 2023–24. Chapter on Aeronautics R&D and Indigenous Fighter Programs.

GlobalSecurity.org. “AMCA – Advanced Medium Combat Aircraft (India).”

FlightGlobal. “India Eyes Foreign Partners for AMCA Jet Engine Collaboration.” March 2024.

Vivek, Raghuvanshi. “India’s AMCA Jet to Fly with GE Engine Initially, Indigenous Powerplant Planned Later.” Defence News, July 2024.
Roy, Shubhajit. “France’s Safran Proposes Joint Development of Jet Engine for India’s AMCA.” The Indian Express, January 2024.
Singh, Abhijit Iyer-Mitra. “Fifth-Generation Fighter Development: Why India Needs to Rethink.” VIF Brief, Vivekananda International Foundation, 2023.

March 24, 2025March 24, 2025

627: INVOLVEMENT OF THE PRIVATE SECTOR IN INDIAN FIGHTER JET PRODUCTION

My Article published on the Chanakya Forum Website

on 24 Mar 25.

A recent Indian defence committee has recommended increasing private sector participation in military aircraft manufacturing to enhance the Indian Air Force’s capabilities. The committee, led by the defence ministry’s top bureaucrat, submitted its report to Defence Minister Rajnath Singh, who has directed that the recommendations be implemented promptly. The report emphasises the need for private companies to work alongside Defence Public Sector Undertakings (DPSUs) and the Defence Research and Development Organisation (DRDO) to achieve self-reliance in aerospace manufacturing. It suggests implementing short-, medium–, and long-term measures to expedite the production of Light Combat Aircraft (LCA) variants, including Mk-1, Mk-1A, and Mk-2, to address delays and strengthen the IAF’s operational readiness.

India’s aerospace and defence sector has undergone significant transformation in recent decades, evolving from a predominantly state-controlled domain to increasingly embracing private sector participation. Fighter jet production, a critical component of national defence, has traditionally been the preserve of public sector undertakings (PSUs) like Hindustan Aeronautics Limited (HAL). However, with the government’s push for indigenisation, self-reliance, and modernisation under initiatives like “Make in India,” the private sector is emerging as a vital player in this high-stakes industry. This article examines the intricacies of how private companies contribute to India’s defence capabilities and what lies ahead for this evolving partnership.

Historical Context

India’s journey into fighter jet production began in the mid-20th century, heavily reliant on foreign technology and licensing agreements. The 1960s saw HAL commence production of the Soviet-designed MiG-21 under license, marking the start of India’s aircraft manufacturing journey. Over the years, HAL expanded its portfolio, producing aircraft like the Jaguar, Mirage 2000, and Su-30 MKI, all under similar arrangements with foreign OEMs. These efforts established HAL as the cornerstone of India’s defence aviation industry, supported by other PSUs and the Defence Research and Development Organisation (DRDO).

The push for Indigenous fighter jet development gained momentum with the HF-24 Marut, designed by German engineer Kurt Tank in the 1960s. However, the Light Combat Aircraft (LCA) Tejas program, initiated in the 1980s by the Aeronautical Development Agency (ADA) with HAL as the production partner, represented a significant leap towards self-reliance. The Tejas, inducted into the Indian Air Force (IAF) in 2016, showcased India’s ability to design and build a modern fighter jet, albeit with substantial reliance on imported components.

Historically, private sector involvement in fighter jet production was minimal. The defence sector’s strategic importance, high capital requirements and restricted access to advanced technology confined manufacturing to PSUs. While effective in establishing a foundational aerospace industry, this PSU-centric model faced limitations in scalability, innovation, and meeting the IAF’s growing demands, setting the stage for private sector inclusion.

Policy Changes Enabling Private Sector Participation

A series of progressive policy reforms have driven the shift towards private sector involvement in defence manufacturing, including fighter jets. Launched in 2014, the “Make in India” initiative sought to bolster domestic manufacturing and reduce import dependency, with defence identified as a priority sector. This program encouraged private companies to participate in defence production by fostering a conducive business environment and promoting collaborations with global players.

A pivotal policy change was the liberalisation of Foreign Direct Investment (FDI) in defence. Previously capped at 26%, the FDI limit was raised to 74% under the automatic route in 2020, with provisions for up to 100% on a case-by-case basis for critical technologies. This opened doors for foreign OEMs to invest in India, often in partnership with private Indian firms, facilitating technology transfer and capacity building.

The Strategic Partnership (SP) Model, introduced in the 2017 Defence Procurement Procedure (DPP), marked another milestone. Designed to foster long-term collaborations between private Indian companies and foreign OEMs, the SP Model identifies private firms as Strategic Partners in manufacturing major defence platforms, including fighter aircraft. The selection process emphasises financial stability, technical expertise, and manufacturing capabilities to create a robust domestic defence industrial base.

Revisions to the DPP further supported this shift. The DPP 2016 introduced the “Buy (Indian-IDDM)” category—Indigenously Designed, Developed, and Manufactured—prioritising equipment with at least 40% Indigenous content. Offset clauses in defence contracts, mandating foreign vendors to invest a percentage of the contract value in India, have also incentivised partnerships with private companies. These policies collectively signal a departure from the PSU monopoly, inviting private sector innovation and investment.

Current Involvement of the Private Sector

The private sector’s role in Indian fighter jet production is multifaceted, spanning manufacturing, supply chain contributions, and support services. While HAL remains the primary assembler of fighter jets like the Tejas, private companies are increasingly integrated into the production ecosystem.

Supply Chain Contributions. In the Tejas program, private firms supply critical components and sub-systems. Dynamatic Technologies, for instance, manufactures the front fuselage of the Tejas, demonstrating the precision and reliability private players can offer. Larsen & Toubro (L&T) contributes to various aerospace projects, leveraging its engineering expertise, while Tata Advanced Systems Limited (TASL) participates in component manufacturing and assembly processes. These collaborations reduce HAL’s burden and enhance production efficiency, paving the way for a more robust and agile production ecosystem.

Offset Obligations. Major defence deals have catalysed private sector involvement. The 2016 Rafale deal with France’s Dassault Aviation, involving 36 fighter jets, included offsets worth billions. Reliance Defence and Engineering partnered with Dassault to fulfil these obligations, producing components and establishing a manufacturing facility in Nagpur. Such partnerships generate business for private firms, facilitating skill development and technology absorption.

Maintenance, Repair, and Overhaul (MRO). Beyond production, private companies are making inroads into MRO services, which are essential for maintaining fighter jet fleets. TASL has established advanced MRO facilities that service military and civilian aircraft, while Mahindra Defence Systems supports aerospace equipment. These services ensure operational readiness, a critical factor given the IAF’s ageing fleet.

Emerging Technologies. Some private firms are exploring adjacent fields like Unmanned Aerial Vehicles (UAVs). Companies like TASL and Adani Defence & Aerospace are developing drones and building aerospace expertise that could eventually support fighter jet programs. While UAVs differ from manned fighters, the technological overlap strengthens the private sector’s aerospace capabilities.

Technology Transfer and Innovation. Technology transfer remains a cornerstone of private sector growth. Collaborations with foreign OEMs provide access to advanced systems, such as radar and propulsion technologies, while joint ventures encourage co-development. Private firms also invest in innovation, exploring additive manufacturing (3D printing) and artificial intelligence to streamline production and reduce costs. Over time, these efforts could lead to fully indigenous fighter jet designs.

Role of MSMEs. Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the aerospace supply chain. These firms produce smaller components—fasteners, wiring harnesses, and sub-assemblies—supporting larger private companies and PSUs. By integrating MSMEs, the industry can enhance efficiency and scalability, fostering a broader industrial ecosystem and providing opportunities for growth and innovation.

Key Defence Production Private Companies. Several private companies have shown interest in participating in fighter jet manufacturing, either independently or in collaboration with HAL and foreign OEMs.

- Tata Advanced Systems Limited (TASL) has emerged as a leader in India’s private aerospace sector. Its joint venture with Lockheed Martin to produce aero structures, including wings for the C-130J Super Hercules, showcases its manufacturing prowess. Although the F-16 production proposal did not materialise, TASL’s capabilities position it for future fighter jet projects.

- Mahindra Defence Systems. Mahindra has leveraged its automotive expertise to enter defence manufacturing, supplying aircraft components and expressing interest in the SP Model. Its partnership with Airbus for helicopter components reflects its ambition to expand into fighter jet production.

- Larsen & Toubro (L&T). L&T’s decades-long experience in defence engineering includes contributions to the Tejas and other platforms. Its advanced manufacturing facilities and focus on precision engineering make it a strong contender in aerospace production.

- Adani Defence & Aerospace. It aims to enhance India’s self-reliance in defence manufacturing. While active in UAVs, avionics, and MRO, it seeks partnerships for fighter jet production but lacks an indigenous fighter aircraft program.

Challenges Faced by Private Companies

Private companies face significant hurdles in entering fighter jet production despite growing involvement.

- High Capital Investment. Aerospace manufacturing demands substantial upfront investment in infrastructure, technology, and skilled manpower. The long gestation periods before returns materialise deter many firms, particularly more minor players.

- Technological Barriers. Fighter jet production requires mastery of complex technologies—avionics, propulsion, and materials science—that PSUs like HAL have developed over decades. Private companies often lack this expertise, relying on foreign partnerships that may limit technology transfer.

- Bureaucratic Procurement Processes. The defence procurement system is notoriously complex, with lengthy tendering, evaluation, and approval stages. This can discourage private firms accustomed to faster commercial cycles.

- Competition with PSUs. HAL’s entrenched position and government backing create an uneven playing field. Private companies must compete with HAL’s economies of scale and establish relationships with the IAF.

- Quality and Certification. Fighter jets demand uncompromising quality and safety standards. Private firms must navigate rigorous certification processes, such as those mandated by the Centre for Military Airworthiness and Certification (CEMILAC), adding time and cost.

Future Prospects

The private sector’s role in Indian fighter jet production is set for significant expansion, driven by policy continuity, market demand, and technological advancements. Government initiatives such as Atmanirbhar Bharat and the Defence Acquisition Procedure (DAP) foster a stable investment climate, encouraging private firms to engage in aerospace manufacturing. Policy measures like strategic partnerships and increased foreign direct investment (FDI) limits further enhance private sector participation.

Market demand is another key driver. The Indian Air Force (IAF) is undergoing rapid modernisation, with plans to replace ageing aircraft and induct advanced fighters. Additionally, India’s ambition to become a defence exporter presents lucrative opportunities for private companies. Countries in Southeast Asia, the Middle East, and Africa could become potential buyers, bolstering the case for increased private production.

Technological advancements are also reshaping the industry. Additive manufacturing, artificial intelligence, and advanced materials reduce entry barriers and enable new players to contribute. Collaborations with global aerospace firms can further accelerate technology absorption.

However, for private firms to succeed, key enablers must be addressed. Streamlining procurement processes, enhancing R&D funding, and developing a skilled workforce are critical. Bureaucratic hurdles and financial constraints have historically hindered private participation, but targeted reforms could unlock their full potential. If these challenges are managed effectively, private companies could be pivotal in next-generation fighter projects like the Advanced Medium Combat Aircraft (AMCA). This would strengthen India’s defence manufacturing ecosystem and enhance its strategic autonomy in aerospace technology.

Conclusion

The involvement of the private sector in Indian fighter jet production marks a paradigm shift from a PSU-dominated landscape to a collaborative ecosystem. While challenges like capital intensity and technological gaps persist, the opportunities—driven by policy reforms, IAF requirements, and global partnerships—are immense. Companies like TASL, Mahindra, and L&T exemplify the potential of private enterprises to enhance India’s defence capabilities. As the nation strives for self-reliance, the private sector’s role will be pivotal in shaping a robust, innovative, and competitive aerospace industry, ensuring that India’s fighter jets soar not just in the skies but also as symbols of industrial prowess and strategic autonomy.

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INVOLVEMENT OF THE PRIVATE SECTOR IN INDIAN FIGHTER JET PRODUCTION

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