Each AMCA Fighter Jet Prototype May Cost Around ₹1,000 Crore ($115M), Significant Cost Reduction Expected During Serial Production

The Advanced Medium Combat Aircraft (AMCA), India's first indigenous fifth-generation fighter jet, is expected to have a hefty price tag for its initial prototypes.

A senior Hindustan Aeronautics Limited (HAL) official revealed at Aero India 2025 that each prototype is estimated to cost around ₹1,000 crore (approximately $115.12 million). This high initial cost is attributed to the development and testing of cutting-edge technologies incorporated into the aircraft.

HAL plans to produce five AMCA prototypes for developmental flight trials and weapons testing. The first prototype is anticipated to be ready by the end of 2027, with its maiden flight scheduled for 2028. Each subsequent prototype will be manufactured at a similar cost to facilitate comprehensive testing and evaluation.

However, there is good news on the horizon. The HAL official stated that the per-unit cost is projected to drop below $100 million once the AMCA enters serial production around 2034. This significant cost reduction will be achieved through economies of scale and streamlined manufacturing processes. This would position the AMCA as one of the most cost-effective fifth-generation fighter jets globally.

The AMCA program represents a major stride towards India's goal of self-reliance in aerospace and defence manufacturing. As a stealth fighter, the AMCA will boast advanced avionics, sensor fusion, and AI-driven combat capabilities, placing it at the forefront of aerial warfare technology. With the backing of the Indian Air Force (IAF), the AMCA is poised to play a pivotal role in securing India's future aerial dominance.

This ambitious project underscores India's commitment to developing indigenous defence technologies and reducing its reliance on foreign suppliers. The AMCA is not just a fighter jet; it symbolizes India's technological prowess and its determination to secure its place on the global stage.

 

[sanket]

When did AMCA become 6th gen from 5.5th gen? Looks like the article has been edited and corrected from 6th to 5th after my comment. Given the importance of stealth fighters, 1000 cr for a prototype is reasonable. If the IAF orders additional AMCA apart from 126, say 200, then economies of scale will bring down the cost. As I have always said, if the Navy had shown interest in an AMCA naval variant, then the cost would have been shared, and the per-unit cost would have come down too. The Navy has shown interest in NLCA up to 12 units, but hasn't for the AMCA naval version. TEDBF project cost = 13000 cr, for AMCA = 15000 cr. Total 13000 cr + 15000 cr = 28000 cr.

 

[Anant]

Considering that these folks have been billing the IAF over 80 million USD for each Tejas Mk 1A, a cost of less than 100 million USD for AMCA is just absurd to even comprehend.

 

[ASHOK CARROL]

Indian defence PSUs and ordnance factories produce poor quality stuff at three times the cost of foreign entities. Logically, with the dollar to rupee value of over 86.5 and three to four times less in salaries than those paid to foreign workers and engineers, the Indian 5th generation fighter should not be more than 40 to 50 million. Milking by the political elite, Babus, unions, and unlimited overtime to workers, and slow, lethargic work practices, Indian defence products today cost as much as foreign-produced ones, whether ships, aircraft, guns, arms, or ammunition. Third-party audits need to be done as the entrenched CAG, being an equally corrupt government entity, is neither capable nor professional in auditing these socialist-communist defunct monoliths, especially HAL, which in 40 years has produced only 36 LCAs.

 

[Deepak Hegde]

Considering that these folks have been billing the IAF over 80 million USD for each Tejas Mk 1A, a cost of less than 100 million USD for AMCA is just absurd to even comprehend.

I suspect it is done on purpose just to show competitiveness and to get initial funding. Secondly, it could be that they have no clue on a model to come to the possible costs, which is also likely.

 

[Rain]

What are the basis of these cost? You are importing majority of the components and not manufacturing them yourself.

 

[Muthukumar Ponnambalam]

115 million $$$ for an AMCA prototype in India? Are you serious? Only the F-35 is costing that much. The Su-57 unit cost is not even half of that. Do you think you're making something better than the F-35?

 

[Rinku Pandey]

115 million $$$ for an AMCA prototype in India? Are you serious? Only the F-35 is costing that much. The Su-57 unit cost is not even half of that. Do you think you're making something better than the F-35?

Yes, AMCA is better than F35 as it is 5.5gen stealth fighter compared to 5th gen F35.

 

[Dredd]

115 million $$$ for an AMCA prototype in India? Are you serious? Only the F-35 is costing that much. The Su-57 unit cost is not even half of that. Do you think you're making something better than the F-35?

Su57 is going to cost even higher than F35 in production. Don't believe in Russian propaganda.

 

[हरिः व्योम]

Costs never come down. It's a joke. Care must be taken to research well. Economies of scale might reduce, but time and delays can increase the cost of raw materials and products, sub-components, and cancel out or even get worse. Even when lithium costs plummeted, EVs costs went up.

 

[Bhishma]

I seriously think we should put more money in CATS warrior project and hire top class AI scientists. Plenty of Indian origins there. CATS + AI can beat 5th gens. This rage on 5th gen might backfire. What if the enemy figures out counter measure for the stealth. So we will end up having limited no of expensive equipment with limited A2As, rendering it pretty much useless. This 5G rage has become a vanity project. Imagine VHF radars giving early detection. A pack of lets say 10 hypersonic drones being pitted against a 5G fighter. Since the drones are unmanned, we can safely increase its speed without having to worry about G forces.

 

[Kira]

Considering that these folks have been billing the IAF over 80 million USD for each Tejas Mk 1A, a cost of less than 100 million USD for AMCA is just absurd to even comprehend.

Even more so if they fail to factor in additional costs incurred due to a decades worth of inflation.

 

[TMan]

HAL not competent enough to produce planes and other ammunition. Only way is to privatize by chopping many arms of the HAL. If not, this fiasco is going to run for a long time and Indian taxpayers are going to pay the money for HAL fiasco. There are a lot of Indian companies that can do better than HAL.

 

[sishir]

Yes, AMCA is better than F35 as it is 5.5gen stealth fighter compared to 5th gen F35.

Not even a prototype? How can you compare it with F 35 or S 57. Don't compare toys with full fledged aircrafts.

 

[sishir]

Why the DRDO and Other organizations speak with private vendors and ask for a quote. There after let them build under license to GOI and sell it to IAF and give royalty to GOI. Forget HAL it cannot change itself to operate in today's environment and competition.

 

[beencensured]

Su57 is going to cost even higher than F35 in production. Don't believe in Russian propaganda.

Russia has not the overhead cost of America. Labor is cheaper there.

 

[beencensured]

Yes, AMCA is better than F35 as it is 5.5gen stealth fighter compared to 5th gen F35.

F35 is of lower quality than F-22 as the USA does not want to give away the secret stealth technology to even its allies. Further, it requires too much service and connecting up to OEM.

Russian fighter jets are cheaper.

 

[beencensured]

Indian defence PSUs and ordnance factories produce poor quality stuff at three times the cost of foreign entities. Logically, with the dollar to rupee value of over 86.5 and three to four times less in salaries than those paid to foreign workers and engineers, the Indian 5th generation fighter should not be more than 40 to 50 million. Milking by the political elite, Babus, unions, and unlimited overtime to workers, and slow, lethargic work practices, Indian defence products today cost as much as foreign-produced ones, whether ships, aircraft, guns, arms, or ammunition. Third-party audits need to be done as the entrenched CAG, being an equally corrupt government entity, is neither capable nor professional in auditing these socialist-communist defunct monoliths, especially HAL, which in 40 years has produced only 36 LCAs.

Still, this cost is cheaper to develop than any nation on earth, as the cost is less than $2 billion dollars with prototypes. Further, they have no economies of scale for AMCA mk1 as they are making only six prototypes and 40 planes. Who will make the cost cheap with such low-scale manufacture? Yes, what you say is partially true, but then it is still cheap by international standards. Further, they should have at least 20 prototypes for testing.

 

[beencensured]

When did AMCA become 6th gen from 5.5th gen? Looks like the article has been edited and corrected from 6th to 5th after my comment. Given the importance of stealth fighters, 1000 cr for a prototype is reasonable. If the IAF orders additional AMCA apart from 126, say 200, then economies of scale will bring down the cost. As I have always said, if the Navy had shown interest in an AMCA naval variant, then the cost would have been shared, and the per-unit cost would have come down too. The Navy has shown interest in NLCA up to 12 units, but hasn't for the AMCA naval version. TEDBF project cost = 13000 cr, for AMCA = 15000 cr. Total 13000 cr + 15000 cr = 28000 cr.

AMCA mk1 has only orders for 40 planes and six prototypes. Prototype cost is always expensive as you manufacture the first part that has never been made to specification. Getting those parts right without defect takes time and effort. It is only when we move to the manufacturer stage that we can set production quality control and specifications. For less than $2 billion dollars the AMCA will be one of the cheapest stealth planes in terms of development cost. Economies of scale do not exist when manufacturing forty planes and so no private firm has shown interest in AMCA mk1, whereas AMCA mk2 is an entirely different plane with a different engine.

 

[skyfall21]

AMCA better than F35 ????
Are you serious 😯
How can you compare a fighter still on paper with war proven jet?

 

[Madan]

Don't believe their utterance. Anything manufactured by a public sector company in India will cost double the amount it takes to manufacture outside. The way this sarkari company HAL is functioning, AMCA may cost more than 2000 crore per unit. HAL is only making big claims but doing nothing. All Hawa Hawai only.

 

[beencensured]

Considering that these folks have been billing the IAF over 80 million USD for each Tejas Mk 1A, a cost of less than 100 million USD for AMCA is just absurd to even comprehend.

You arm lobbyist find a way to poke holes in anything, but can you find anywhere in the world that development cost for a stealth fighter is less than 2 billion dollars with six prototypes? Even Russia spent more to develop its Su-57, and the ungodly figure for F-35 nearly a trillion dollars, but why? To develop their nations. In fact, it is so cheap to develop I would say India should have three more types of aircraft in development. At the prototype stage to manufacture to specification is not as easy, and there is trial and error. Second AMCA mk1 has only 40 orders and reason why all private companies refused as impossible to manufacture and get economics of scale. AMCA mk1 would be manufactured at loss. Like the difference between hand woven carpet, and manufactured carpet. Hand woven always takes more time and effort. Now, if you produce thousands like F-35 expect the price to drop to 1/4 and if you produce hundreds then expect the price to be 1/2. Su-57 is cheap compared to F-35, but does it have sensor fusion, or AI targeting? Still, AMCA is better as it develops our nation.

 

[beencensured]

Even more so if they fail to factor in additional costs incurred due to a decades worth of inflation.

They only got funds to develop it last year. It's still costing less than $2 billion dollars, less than South Korea ($6.59 billion and is not yet stealth) paid to develop their fifth-generation plane, even less than what Russia paid to develop the Su-57, which was over three billion dollars. It is shameless that only forty AMCA mk1 have been ordered. Even private companies were unwilling to touch such a small order due to no economies of scale and high risks. The AMCA mk2 is an entirely new plane with a different engine. Certainly, with these costs, India can afford to develop more types of fighters and other aircraft. It is damn cheap, you stop talking nonsense.

 

[Sandeep]

Developing a proper stealth jet is always going to be expensive including its maintenance and upkeep. Once production begins and large numbers are placed then the cost will come down even further. However HAL should just manufacture the 5 prototypes and certify the technology and equipment. After that then several Indian private sector companies should manufacture the jets in large numbers.

This will ensure quicker production and the delivery time will slowly be reduced. We should also make sure that the jet is manufactured 100% indigenously using indigenous raw materials which will reduce the cost even further.

 

[Pankaj798]

$115 million for prototype is not very much, india just need to focus on AMCA capabilities instead of price, low budget fighter like su 57 is useless it doesn't even make russian air superiority in Ukraine who just received F 16 on 2024