India accelerates domestic defence manufacturing with large-scale medium transport aircraft tender

India’s Defence Ministry has announced a major tender for 60 medium transport aircraft, aiming to modernise the Indian Air Force and strengthen indigenous aerospace capabilities amid broader military modernisation efforts.

India’s Defence Ministry has moved forward with one of its biggest military transport buys in years, issuing a tender for 60 medium transport aircraft for the Indian Air Force in a programme valued at roughly ₹1 lakh crore, according to Moneycontrol and other Indian media. The plan is designed to replace the force’s ageing An-32 fleet and give it greater lift for troop movement, cargo delivery and operations in difficult terrain.

The procurement is being structured to ensure a large domestic role. Reports said 12 aircraft would be delivered in fly-away condition, with the remaining 48 built in India under a buy-and-make arrangement. More than 60% indigenous content is expected across structures, avionics and systems integration, underscoring New Delhi’s push to deepen local aerospace manufacturing.

Several major Indian firms are now in the contest, each pairing with an overseas partner. Mahindra Defence is working with Brazil’s Embraer on the C-390 Millennium, while Tata has teamed up with Lockheed Martin around the C-130 family, already familiar to the Indian Air Force through its existing special operations fleet. Hindustan Aeronautics Limited is also expected to bid, likely through partnerships with original equipment manufacturers.

The transport aircraft plan comes as India’s military aviation sector is being reshaped by a broader modernisation drive. Tata Advanced Systems and Airbus have already marked progress on the C295 programme, including the first India-built test flight from the Vadodara final assembly line, a milestone in private-sector military aircraft production. At the same time, the air force is also pursuing other major acquisitions, including a large Rafale fighter deal and new trainer aircraft, reflecting a wider effort to expand capability and replace older fleets.

Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.