Defense Business and Industry

Private Sector Hesitant to Engage in AMCA 5th Gen Jet Production

The Indian Aeronautical Development Agency has extended the bid deadline for the Advanced Medium Combat Aircraft (AMCA) program to September 30, 2025, due to a lack of interest from private vendors. Concerns over stringent terms, inadequate profit margins, and the dominance of Hindustan Aeronautics Limited (HAL) deter firms from committing to the Full-Scale Engineering Development phase. Despite the AMCA’s strategic importance in enhancing India’s air combat capabilities against regional threats, private companies prefer lower-risk tier-supplier roles over full partnership, highlighting challenges in attracting investment and fostering self-reliance in the defense sector. Without addressing these issues, the AMCA’s ambitious timeline could face further delays.

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