The Indian government is actively considering a major restructuring of Hindustan Aeronautics Limited (HAL) to tackle its staggering order backlog exceeding Rs 2.7 lakh crore, which is more than eight times its annual revenue. This backlog includes fighter jets, helicopters, and propulsion systems, causing significant production delays affecting the Indian Air Force’s (IAF) operational readiness. The government has engaged an external consultancy to develop a strategic plan focused on creating three specialized autonomous units within HAL, each dedicated to fixed-wing aircraft, helicopter manufacturing, and Maintenance, Repair, and Overhaul (MRO) services. The urgency of this move has been amplified by a recent Rs 66,500 crore contract for 97 Tejas Mk-1A fighter jets, despite ongoing delays in delivering a previous order of 83 aircraft from 2021, largely due to engine supply issues from General Electric. The restructuring aims to improve operational efficiency, accelerate delivery timelines, and align with the government’s vision of boosting indigenous defense manufacturing and encouraging private sector collaboration, ensuring that HAL can meet the critical demands of the nation’s defense modernization programs. The initiative aligns with India’s broader Atmanirbhar Bharat goals and the looming need for new aircraft like the Advanced Medium Combat Aircraft (AMCA).