India launches $10.5bn tender for 60 medium transport aircraft

India's Ministry of Defence issued a formal request for proposals on August 12, 2026, opening a competition worth roughly 1 trillion rupees, or about $10.5 billion, for 60 medium transport aircraft.

The tender went out to five Indian firms: Tata Advanced Systems, Mahindra, Adani Defence and Aerospace, Hindustan Aeronautics Limited, and Reliance Defence. Each is expected to partner with a foreign manufacturer for the bid.

Two partnerships have already been made public. Tata Advanced Systems signed a teaming agreement with Lockheed Martin in September 2024 to offer the C-130J-30 Super Hercules. Mahindra has been working with Embraer since a February 2024 memorandum of understanding to propose the C-390 Millennium. The other three companies have not disclosed foreign partners.

According to the report, India's Defence Acquisition Council approved the program in March 2026, describing the new aircraft as replacements for the country's aging An-32 and Il-76 fleets. The requirement calls for a payload capacity between 18 and 30 tons. The C-130J-30 falls near the lower end of that range at about 19 tons. The C-390 sits closer to the top, around 26 tons. Airbus had previously floated its A400M for the requirement, but at approximately 37 tons the type exceeds the stated payload ceiling and appears to be effectively excluded.

Most of the aircraft under the eventual contract are expected to be built domestically in India, in line with the country's broader push for local defence production. Further details on assembly timelines were not specified in the announcement.