New Delhi [India], May 27: Defence Minister Rajnath Singh on Tuesday approved the Advanced Medium Combat Aircraft (AMCA) Programme Execution Model, a landmark move aimed at boosting India’s indigenous defence capabilities and fortifying its domestic aerospace industry, the Ministry of Defence (MoD) announced.
In an official statement, the MoD emphasized that the Aeronautical Development Agency (ADA) will spearhead the programme, working closely with industry partners. The Execution Model ensures a level playing field for both private and public sector entities, allowing them to bid independently, jointly, or as consortia, provided they are Indian companies compliant with national laws.
This green light marks a critical step towards building the AMCA prototype and achieving Aatmanirbharta (self-reliance) in the aerospace sector. The Expression of Interest (EoI) for the development phase of the programme is expected to be issued shortly by ADA.
Market Impact:
The approval had an immediate ripple effect on financial markets. Stocks of key defence sector companies rallied up to 6%, reflecting investor optimism.
Among the top gainers were:
- Hindustan Aeronautics Ltd. (HAL)
- Cochin Shipyard
- Garden Reach Shipbuilders & Engineers (GRSE)
- Bharat Dynamics Ltd. (BDL)
- Bharat Electronics Ltd. (BEL)
- Mazagon Dock Shipbuilders (MDL)
- BEML
- Ideaforge Technology
- Apollo Micro Systems
- Paras Defence and Space Technologies
The Nifty India Defence Index soared to 8,674.05, marking a 52-week high at the time of reporting.
This strategic initiative is being hailed as a transformational moment for the Indian defence manufacturing sector, combining cutting-edge aerospace development with market-driven collaboration.