India is preparing to produce a new generation of aircraft in a privately-led joint venture. Hindustan Aeronautics Ltd (HAL), a state-owned subsidiary, calculates the costs associated with the production of the fifth-generation Advanced Multirole Combat Aircraft (AMCA) and the structure of the planned joint venture. India's Ministry of Defence and HAL said the state's share of the aircraft project, which will include the private sector, would be less than 50%.

Hal is expected to open its existing facilities in Nasik to its private sector partners for the next generation aircraft, which is scheduled to begin production in 2028.

“Most likely the prototypes will appear in Bangalore and production can be carried out in Nasik. We want the private sector to have the capacity to create and invest in a new ecosystem and that HAL is not the only production partner.”

New Delhi launched the Made in India Programme to strengthen the defence sector and contribute to industrial infrastructure.