In a major shift for India’s defence manufacturing, state-run Hindustan Aeronautics Limited (HAL) has been excluded from the Advanced Medium Combat Aircraft (AMCA) prototype development project, marking one of the biggest moves towards private sector involvement in building next-generation fighter jets. The AMCA programme — envisioned to produce an indigenous fifth-generation stealth fighter — is now competing among private industry players including Tata Advanced Systems, Larsen & Toubro (L&T) and Bharat Forge, with the final contract expected to go to the lowest bidder. Why HAL Was Sidelined HAL’s exclusion marks a departure from the longstanding practice where the state-owned defence enterprise was the default choice to build India’s indigenous high-end fighter aircraft. The decision isn’t about capability alone but commercial criteria — particularly the requirement that a bidder’s order book must not exceed three times its annual revenue. HAL’s extensive existing orders reportedly put it out of contention. This implies a calculated gamble by the Indian government to tap private sector efficiency and competitiveness to accelerate the AMCA’s trajectory and introduce fresh dynamics into defence R&D and manufacturing. The Contenders: Private Sector Takes the Lead Three private sector groups have been shortlisted: A consortium led by the Tata Group, notable… Read MoreBusiness Archives – Trak.in – Indian Business of Tech, Mobile & Startups
