850 F-35 jets in 10 years: What US deal reveals about India’s AMCA plans

New Delhi: The United States has announced a 10-year deal to produce at least 850 F-35 Lightning II fighter jets for its military. The plan targets annual production of 156 aircraft for US and international customers. The agreement offers an example of how long-term procurement planning can support aircraft manufacturing, although it is subject to congressional approval and funding.

Announced by the US Department of War and Lockheed Martin on October 22, 2026, the deal includes production Lots 21 to 30. It also includes initial spare parts, modification kits and sustainment support. The Pentagon and Lockheed Martin will have to finalise contract terms, pricing and schedules if the Congress grants the required authority and funding. 

Lockheed Martin Chief Executive Jim Taiclet said in a statement that the agreement would give the company more confidence to invest in manufacturing capacity and its supply chain.

“With the greater certainty that comes from the U.S. government's transformative approach to F-35 production and sustainment, we can make the upfront investments needed to expand capacity, improve efficiency and build a more resilient supply chain,” he said.

India is also developing its Advanced Medium Combat Aircraft (AMCA), a planned fifth-generation stealth fighter for the Indian Air Force (IAF). The aircraft has not made its maiden flight, and its development and production will require a partnership between the Aeronautical Development Agency (ADA) and an Indian industry player.

Why long-term orders are important

The US agreement sets out a production schedule over a decade rather than depending on a series of separate annual decisions. Such commitments can help manufacturers plan investments in machinery, facilities, workers and component supplies. They can also allow companies to negotiate bulk purchases and spread fixed costs across a larger number of aircraft.

However, the US deal is not so far a final contract. Its production targets and expected savings depend on congressional authorisation, appropriations and the completion of formal contract negotiations.

India's fighter manufacturing plans have a different set of requirements. The government must first establish that AMCA meets the IAF's operational needs. It must also select an industry partner and determine how design, testing and production responsibilities will be divided.

The Ministry of Defence (MoD) approved an industry-partnership model for the aircraft in May 2025. Under the model, eligible Indian companies can bid independently or as joint ventures or consortia. The stated objective is to use expertise from both the public and private sectors to develop the aircraft's prototypes.

Former Defence Secretary G Mohan Kumar has explained the challenges a private company could face in manufacturing a fighter aircraft.Speaking to The Economic Times about the AMCA programme, he said India would need to build an entire network of suppliers and manufacturers capable of producing the aircraft’s components.

Building a fighter aircraft requires more than putting its parts together. Manufacturers need skilled workers, reliable suppliers, testing facilities and the capacity to produce parts in the required quantities and to the required standards. Companies also need an idea of how many aircraft they may be asked to build before investing in new factories and equipment.

India's fighter production challenge

India's existing fighter programmes show the challenges facing domestic aircraft production. The IAF has sought faster deliveries as it deals with a shortage of fighter squadrons.

In March 2025, Air Chief Marshal AP Singh called for greater private-sector participation in military aircraft manufacturing. He said that India needed to produce 35 to 40 fighters annually to address capability shortfalls and replace ageing aircraft, according to Reuters.

The Tejas programme also shows why production capacity and supply-chain performance are as important as aircraft development. Deliveries depend on the availability of engines and other components, as well as the manufacturer's ability to meet production schedules.

Orders placed in separate batches can give the government room to adjust spending and operational requirements. However, uncertainty about later orders can make it difficult for suppliers to decide how much additional capacity to build.

The budget challenge for AMCA

India's defence spending must accommodate several competing procurement requirements, say experts. The Union Budget for 2026-27 allocated approximately Rs 2.19 lakh crore for the capital outlay of the defence services. This allocation supports purchases across the armed forces, including aircraft, submarines, tanks, air defence systems and military infrastructure.

They said a multi-year AMCA procurement plan would have to account for these requirements and the aircraft's development schedule. The government and the IAF, according to them, would need to determine the number of aircraft required, the pace of deliveries and the funding available for successive production batches.

The US F-35 agreement provides an example of a long-term production plan, but the two programmes are at different stages. The F-35 is an established aircraft in production, while AMCA is still in development.

What F-35 deal means for AMCA

The F-35 deal does not mean India should order hundreds of AMCA aircraft before the design and testing process is complete. It shows how a long-term procurement plan can give manufacturers a basis for planning production and investing in their supply chains.

Once AMCA completes the required trials, the experts said, India will have to decide the scale of its fleet and the production capacity needed to deliver it. A multi-year procurement schedule could help companies assess investments in facilities, skilled workers and domestic component manufacturing.

The plan would also need to accommodate changes in costs, production rates and technical requirements as the aircraft enters service. Future orders would have to match the IAF's operational requirements and the government's available funding.

AMCA's development and production timeline will depend on technical progress and decisions by the government and the IAF. The selection of an industry partner and the division of responsibilities between ADA and the chosen company will determine the next phase of the programme.