Writer

Charlotte Bailey

The Indian Air Force (IAF) has officially launched its hunt for its new medium transport aircraft. A request for proposal, issued on August 12 by the country's Ministry of Defence outlined a requirement for 60 new airframes with an option clause for more in a potentially sizeable deal worth around $10 billion. The procurement is being initiated to replace India’s ageing fleet of Antonov An-32 and Ilyushin Il-76 aircraft.
Lockheed Martin of the U.S. and Brazil’s Embraer are expected to be among the frontrunners. Bidders will be expected to make provision for domestic manufacturing, including the establishment of an in-country final assembly line, under the terms of the government's Made in India policy.&nbsp;
According to the document, while initial aircraft will be built by the selected OEM, subsequent units must contain a minimum 40% indigenous content. This will progressively rise to 60% and collaboration with Indian industry for in-service support, alongside maintenance, repair, and overhaul (MRO) provision will also follow.&nbsp;
<h2>Assessing Aircraft Options</h2>
India’s request for proposal confirmed that the incoming aircraft must have a payload of around 18 to 30 tons. At the lower end of the capacity requirement is Lockheed Martin’s C-130J Super Hercules turboprop, a type already operated by the IAF. Indian aerospace, engineering and technology group Tata Advanced Systems is already the current single global source of C-130J empennage assemblies since it started producing them in 2010 in Hyderabad.&nbsp;
Tata Advanced Systems also has experience of manufacturing entire aircraft, with a final assembly line for the Airbus Defence and Space C295 inaugurated in October 2024. The IAF has 56 of the medium-range tactical turboprops on order, with an initial 16 Spanish-built units to be followed by 40 domestic deliveries. According to Airbus, the Indian C295 program represents “the first instance of the private sector setting up an aircraft manufacturing facility in the country.”&nbsp;
In December, the Tata Group subsidiary also broke ground on a new C-130 MRO facility. According to Lockheed Martin, this will “create opportunities that will support regional and global C-130 operators,” with the first C-130 expected to be inducted for MRO in early 2027.&nbsp;
Embraer’s C-390 Millennium—with a payload of 26 tons—is also vying for the contract. A similar agreement signed by the company in October 2025 with Indian defense manufacturer Mahindra Group promised to “deepen the scope of cooperation” between the organizations. According to Embraer, this includes provision to “engage with India’s military and aerospace ecosystem to identify opportunities for local manufacturing, assembly facilities, supply chain and MRO activities.”&nbsp;
At the time, Embraer concluded that its “long-term ambition is to position India as a manufacturing and support hub for the C-390 Millennium aircraft, serving both domestic and regional requirements.” As the multi-role military transport continues to attract orders from around the world, Embraer revealed in July that it was looking to <a href="https://www.ainonline.com/aviation-news/defense/2026-06-15/embraer-ramp-annual-kc-390-production-10-2030">more than double</a> annual production from its Gaviato Peixoto factory in Brazil.&nbsp;
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