India’s dream of building its own fifth-generation stealth fighter, the Advanced Medium Combat Aircraft (AMCA), is at a decisive crossroads. The programme has entered Full-Scale Engineering Development (FSED), where designs turn into hardware. The structural assembly of the first AMCA prototype is underway, a milestone in India’s stealth journey. Yet, in a surprising twist, as of 30th August 2025, the AMCA FSED bids from private sector giants, expected to drive India’s aerospace revolution, have not arrived, and the deadline has now been extended to 30th September 2025.
As someone who has tracked this programme for years, I see this as both a moment of hope and a moment of frustration. Hope, because AMCA is finally moving from concept to construction. Frustration, because the private sector’s hesitation reveals cracks in India’s defence manufacturing ecosystem.
What Are AMCA FSED Bids?
Before diving into the challenges, it is important to understand the term itself.
- FSED (Full-Scale Engineering Development) is the crucial stage where prototypes of the AMCA are built, tested, and refined before mass production.
- For this stage, ADA (Aeronautical Development Agency) and DRDO invited private consortia to bid for participation in the production ecosystem.
- The idea was to replicate the joint venture model used in major global fighter jet programmes, ensuring that Indian private industry does not just supply bolts and panels but actually co-develops a world-class stealth aircraft.
On 18 June 2025, the Expression of Interest (EoI) was floated. Bidders were expected to commit to building fuselage sections, wings, avionics integration, and even stealth-specific assemblies. In short, it was an open call to the Indian industry: Do you want to shape India’s stealth future?
More on this issue can be read at IDRW: AMCA FSED Bids and Private Sector Hesitation.
The Timeline of Delays
Like any ambitious programme, deadlines quickly became moving targets:
- June 18, 2025 – EoI issued to private sector players.
- August 16, 2025 – Original bid deadline.
- August 31, 2025 – First extension after the industry requested more time.
- September 30, 2025 – Second extension announced, as no bids had come forward.
Even after two extensions, not a single private consortium submitted a bid by the end of August. For a country aiming to be a global defence export hub, this silence was deafening.
Why Private Players are Silent on AMCA FSED Bids
At first glance, it is easy to blame private companies for being risk-averse. But when I studied the details from the pre-bid meeting held in early August, the reasons became clearer, and frankly, relatable.
1. Unfavourable Terms and Conditions
The fine print of the bid documents placed too much risk on private partners while offering too little reward. For companies that must answer to shareholders, risk-sharing has to be fair.
2. Low Business Potential
Unlike commercial aviation or export-friendly projects like the Tejas Mk1A fighter programme (Related: 97 Additional Tejas Mk1A Jets), AMCA production is limited to the Indian Air Force and maybe a few export clients years down the line. This caps the business scale drastically.
3. Insufficient Profit Margins
Margins in defence aerospace are already razor-thin. If the contract terms do not guarantee long-term production orders or cost escalation clauses, companies will think twice before investing hundreds of crores.
4. Equity vs. Supplier Role
Private companies are tired of being “tier-2” suppliers who only manufacture parts while HAL keeps full control. They want equity participation, where they share ownership, risk, and reward. Without this, AMCA looks like yet another HAL-dominated programme.
My Take: A Systemic Problem
This reluctance is not about AMCA alone. It reflects a deeper trust gap between the Indian state and private industry.
- HAL monopoly still enjoys dominance, while private giants like Tata, L&T, and Mahindra remain “junior partners.”
- India has seen similar struggles in the Project Vishnu hypersonic missile programme (Related: Project Vishnu Hypersonic Missile), where private firms stepped back due to unclear returns.
- Without addressing this imbalance, every major indigenous project risks repeating the same cycle: grand vision, poor execution, half-hearted private participation.
Related: AMCA Production in India – Why TASL, L&T & DRDO?
Why AMCA Still Matters
Despite these hurdles, AMCA is not just another aircraft project. It is India’s ticket to the fifth-generation fighter club, currently dominated by the US (F-35, F-22), Russia (Su-57), and China (J-20).
Here is why AMCA is non-negotiable for India’s future:
- Air Dominance in the Indo-Pacific – With China aggressively deploying J-20s, India cannot rely on upgraded fourth-gen fighters forever.
- Stealth and Survivability – Unlike the Su-30MKI or Rafale, the AMCA will be designed for a low radar cross-section, internal weapon bays, and advanced electronic warfare capabilities.
- Make in India Push – A successful AMCA could create an ecosystem of stealth composites, radar-absorbent materials, and advanced avionics in India.
- Export Potential – Nations that cannot access the F-35 may consider the AMCA as a cost-effective option, provided India establishes its credibility.
Discover: India’s 6th Generation Fighter Jet – DRDO’s flying wing stealth design explained
What Needs to Change for Private Players to Join
From my perspective, three steps could bridge the gap between government ambition and private hesitation:
1. Fair Risk Sharing
The government must design contracts that ensure private firms do not bear disproportionate risk. Cost-plus models or assured minimum order guarantees can help.
2. Equity Partnerships
Instead of keeping HAL as the sole master, private players should be invited as equity co-owners in AMCA production. This would transform the relationship from supplier to stakeholder.
3. Export Pathways
If AMCA is positioned as an export-friendly platform with government support, private players will see genuine long-term potential beyond just IAF orders.
The Risk of Missing India’s Stealth Future
The silence of the private sector is not just about balance sheets. It is a missed opportunity for India to prove that its public-private partnership model can deliver cutting-edge defence platforms.
If the AMCA FSED bids fail to attract participation, the project risks going back to the old HAL-driven monopoly. While HAL has the experience, the scale and speed needed for a fifth-gen jet demand a consortium model like the Eurofighter Typhoon or the F-35 programme.
Learn More: HAL CATS Warrior – India’s loyal wingman UAV preparing to support AMCA missions
Conclusion: Still a Fight Worth Fighting
As an observer of Indian defence for years, I feel torn. On one hand, the lack of bids exposes the flaws in our defence-industrial policy. On the other hand, AMCA remains India’s best shot at joining the elite stealth fighter league.
The message from the private sector is clear: We will come, but only if the rules are fair.
India must listen. The world will not wait. China already flies stealth squadrons, and the US is preparing sixth-gen jets. If India drags its feet, the AMCA risks being outdated before it even enters service.
The September 30 deadline is more than just a bureaucratic date. It is a test of whether India’s defence ecosystem can rise above its old habits and truly embrace a new era of collaboration.
For enthusiasts like me, this is not just about one aircraft. It is about whether India can finally prove that it dares to match its ambition with execution.
Recommended: Tejas Mk2 Prototype – India’s next 4.5-gen fighter entering structural assembly
Key Takeaways
- AMCA FSED bids have seen zero private participation so far.
- Reasons include unfavourable terms, low ROI, and lack of equity roles.
- AMCA is critical for India’s future air dominance and export ambitions.
- Unless contract terms change, private sector involvement will remain lukewarm.
- The programme is not just about building a jet, it is about building trust between India’s state and industry.