In a major push to advance India’s indigenous defence manufacturing capabilities, Defence Minister Rajnath Singh on Tuesday approved the execution model for the Advanced Medium Combat Aircraft (AMCA) programme, officially opening the door for private sector participation in the country’s ambitious fifth-generation fighter jet project.
According to a statement from the Ministry of Defence (MoD), the Aeronautical Development Agency (ADA) will lead the AMCA programme in collaboration with industry partners. The approved model enables both private and public sector entities to participate on a level playing field—either independently, as joint ventures, or as consortia. All participating entities must be Indian companies compliant with national regulations.
The initiative marks a key step towards strengthening the domestic aerospace ecosystem and achieving self-reliance under the Aatmanirbhar Bharat vision. The AMCA prototype, once developed, will serve as a cornerstone of India’s future air combat capabilities.
An Expression of Interest (EoI) for the development phase of the programme is expected to be issued by the ADA shortly.
The announcement had an immediate impact on the stock markets, triggering a surge in shares of defence and allied sector companies. Stocks of Hindustan Aeronautics (HAL), Cochin Shipyard, Garden Reach Shipbuilders & Engineers (GRSE), Bharat Dynamics (BDL), BEML, Mazagon Dock Shipbuilders (MDL), Ideaforge Technology, Bharat Electronics, Apollo Micro Systems, and Paras Defence & Space Technologies rose between 1% and 6%.
Riding the momentum, the Nifty India Defence index hit a fresh 52-week high, climbing to 8,674.05 at the time of reporting.
The AMCA, a fifth-generation stealth fighter aircraft under development by ADA for the Indian Air Force, is expected to feature cutting-edge technologies such as AI-enabled systems, manned-unmanned teaming, and advanced sensor fusion, positioning it among the most sophisticated combat jets globally.
