India’s Defence Research and Development Organisation (DRDO) has progressed its Advanced Medium Combat Aircraft (AMCA) project by shortlisting three industry bidders to develop prototypes, according to The Indian Express. This marks a critical step in creating the country’s first indigenous fifth-generation stealth fighter, aimed at strengthening the Indian Air Force (IAF).

The selected contenders are TATA Advanced Systems Ltd (solo bid), a consortium led by Larsen & Toubro (L&T) in partnership with Bharat Electronics Limited (BEL), and a group led by Bharat Forge along with BEML Limited and Data Patterns. These were chosen from seven consortia that responded to the Aeronautical Development Agency’s (ADA) July 2025 tender.

The AMCA is designed as a single-seat, twin-engine stealth fighter featuring advanced coatings, internal weapons bays, next-generation avionics, supercruise capability, enhanced situational awareness, and network-centric warfare integration, putting it on par with global fifth-generation jets. Over 125 units are planned, with induction into the IAF expected around 2035—addressing the service’s current shortfall of under 30 squadrons versus the sanctioned 42.

Successful AMCA production would place India among nations operating fifth-generation fighters, such as the U.S. (F-22, F-35), China (Chengdu J-20), and Russia (Sukhoi Su-57). HAL’s bid was disqualified over a paperwork issue, though it may participate in later stages; the prototype developer is likely to gain priority for full production rights. HAL’s chairman DK Sunil noted the program’s long-term horizon and expressed confidence in future participation.

The shortlisted companies will receive government funding to build prototypes, with final production contracts awarded after evaluations. Around 90 jets are expected to be produced domestically, supporting the Atmanirbhar Bharat initiative and encouraging private sector involvement. TATA brings UAV and transport aircraft experience, L&T-BEL offers structural and avionics expertise, and Bharat Forge contributes metallurgical and electronics capabilities vital for stealth airframes. Key challenges include developing a new 110 kN-class engine with DRDO’s Gas Turbine Research Establishment (GTRE) and potential foreign partners, along with integrating AI-based avionics and low-observable materials.

This development coincides with broader defense procurement, such as the Defence Acquisition Council approving six more Boeing P-8I Poseidon aircraft for the Indian Navy. French President Emmanuel Macron’s February 2026 visit may highlight aerospace collaborations, including Rafale Marine offsets or engine technology transfers relevant to AMCA. The AMCA shortlisting underscores India’s push to indigenize air power, reduce reliance on foreign supply chains, and strengthen strategic deterrence in a volatile region.