In a significant step towards bolstering India’s self-reliance in defence, Defence Minister Rajnath Singh on Tuesday approved the Execution Model for the Advanced Medium Combat Aircraft (AMCA) Programme.
This move marks a pivotal development in the country’s efforts to strengthen its indigenous aerospace capabilities, the Ministry of Defence (MoD) announced in an official statement.
The AMCA, a fifth-generation fighter jet programme designed by the Aeronautical Development Agency (ADA) for the Indian Air Force, will now proceed under an industry-partnership model.
The model promotes equal participation from both public and private sector companies, enabling them to bid independently, as joint ventures, or as consortia, provided they comply with Indian laws and regulations.
HAL & Private Players To Collaborate
According to the MoD, the AMCA Execution Model is designed to tap into India’s domestic industrial expertise.
In a significant push towards enhancing India’s indigenous defence capabilities and fostering a robust domestic aerospace industrial ecosystem, Raksha Mantri Shri @rajnathsingh has approved the Advanced Medium Combat Aircraft (AMCA) Programme Execution Model. Aeronautical… pic.twitter.com/28JEY123M5
— रक्षा मंत्री कार्यालय/ RMO India (@DefenceMinIndia) May 27, 2025
The programme aims to foster innovation and technological advancement while creating opportunities for both established public sector enterprises like Hindustan Aeronautics Ltd (HAL) and emerging private firms such as the Tata Group and L&T.
HAL’s extensive experience in aircraft manufacturing positions it as a likely frontrunner in the development process, either independently or in partnership with private entities.
Stock Market Reacts Positively
The announcement has already sparked positive momentum in the markets.
Shares of defence and allied companies surged by up to 6%, with the Nifty India Defence index touching a fresh 52-week high at 8,674.05.
Key players such as HAL, Cochin Shipyard, Bharat Electronics, Mazagon Dock, and Paras Defence witnessed substantial gains, reflecting investor confidence in the programme’s future prospects.
The Aeronautical Development Agency (ADA) will soon issue an Expression of Interest (EoI) to begin the development phase.
Earlier this year, ADA showcased a full-scale model of the AMCA at Aero India 2025 in Bengaluru, drawing attention to its advanced features.
Designed to weigh 25 tonnes, the aircraft supports both manned and unmanned operations and integrates cutting-edge artificial intelligence (AI) technologies.
These AI-powered systems will include multi-sensor data fusion for enhanced situational awareness, automated target identification, pilot decision-support mechanisms, and a combined vision navigation system for adverse weather conditions.
ADA believes this integration of AI will make AMCA one of the world’s most advanced stealth fighter platforms.
Rajnath Singh’s approval of the execution model represents a critical step in achieving ‘Aatmanirbharta’ (self-reliance) in defence.
It also reinforces the government’s commitment to transforming India into a global aerospace manufacturing hub while creating new economic opportunities within the domestic ecosystem.
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