India’s ambitious Advanced Medium Combat Aircraft (AMCA) project has emerged as more than just a fighter jet program—it is now the litmus test for the nation’s defence manufacturing strategy. At the centre of the current challenge is a tussle between Hindustan Aeronautics Limited (HAL) and private players, over control, participation, and the broader philosophy of how India should build its fifth-generation stealth fighter.

The Present Standoff

The Aeronautical Development Agency (ADA) recently floated an Expression of Interest (EoI) to create a Special Purpose Vehicle (SPV) for AMCA production. HAL raised concerns that the selection framework leans unfairly toward private firms. By contrast, private players argue that HAL’s dominance, backed by government orders exceeding ₹2,00,000 Crores, effectively sidelines them from playing any significant role.

HAL’s Case

HAL insists that its decades of experience with legendary programs like the TEJAS, coupled with its established infrastructure, supply chains, and skilled workforce, provide unmatched reliability for a project of AMCA’s complexity. Its institutional knowledge is indeed a safety net in high-stakes aerospace development, where past experience is often the difference between success and costly missteps.

Private Sector Concerns

However, private defence companies counter that competing with HAL is akin to competing against an entrenched monopoly. They emphasise that their leaner production processes, modern assembly methods, and operational efficiency could significantly accelerate the AMCA program. For them, EoI criteria must account not only for past experience but also for innovation potential and next-generation manufacturing readiness.

Balancing Public And Private Strengths

A future-proof path requires synergy, not exclusion. Strategic control of critical systems, stealth technologies, and final assembly must remain with the state—HAL and ADA—given national security sensitivities. However, sub-assemblies, components, and advanced manufacturing tasks should be opened to private players to distribute the production load, reduce risks of supply bottlenecks, and drive efficiency.

Need For HAL Reform

More fundamental than partner selection is HAL’s own transformation. The company’s reputation has long been undermined by bureaucratic delays, red tape, and the L1 procurement trap. Unless HAL reforms its internal governance—introducing accountability systems, performance-linked benchmarks, and stronger project management—the AMCA effort risks falling into the same cycle of cost overruns that plagued past programmes.

Accountability And Metrics

The report underlines an urgent need for clear deliverables, performance timelines, and consequences for delays. Division heads responsible for supply chains, assembly, and component integration must be held accountable in a manner similar to private firms. Without strict accountability, the AMCA SPV structure will replicate existing inefficiencies instead of solving them.

Revisiting Evaluation Criteria

India’s defence MoD must revise the EoI point system to balance HAL’s proven track record with the private sector’s innovation focus. Prior performance will matter, but so should efficiency metrics, capability for advanced composite manufacturing, and readiness to adopt Industry 4.0 practices. A blended evaluation framework can truly reflect the combined strengths of India’s aerospace ecosystem.

The Bigger Picture

The AMCA is more than just another fighter aircraft—it is India’s bid to join the elite club of nations with indigenous fifth-generation stealth fighter programs. Its success could redefine India’s aerospace industry, reduce import dependence, and pave the way for exports of advanced combat platforms.

Way Forward

The government must act quickly to end this turf war. A partnership model rooted in HAL’s control but powered by private sector participation can ensure both security and agility. Time is critical—the Indian Air Force’s fighter squadron strength is eroding as legacy platforms retire. HAL must embrace reform, private firms must be partners not rivals, and the nation must avoid the paralysis of indecision.

Final Word

The AMCA program is not just a test of stealth fighter design—it is a test of India’s defence industrial maturity. HAL must evolve beyond its public-sector comfort zone, adopting accountability and efficiency as core principles. The private sector, meanwhile, must be given genuine space to contribute. India cannot afford for AMCA to fail due to institutional turf wars. The stakes are too high; the future of Indian aerospace depends on getting this balance right.

IDN (With DNA Inputs)