India Opens $11 Billion Tender for 60 Transport Aircraft to Replace Aging An-32 Fleet
India’s Ministry of Defence issued a formal request for proposal on August 12 for 60 new medium transport aircraft to replace its four-decade-old An-32 fleet, in a roughly $11 billion programme that pits Embraer’s KC-390 against Lockheed Martin’s C-130J and the Airbus A400M.
At a Glance
- India’s MoD released the RFP for 60 medium transport aircraft on August 12, 2026, under the Medium Transport Aircraft (MTA) programme.
- The deal is valued at roughly ₹1 trillion ($11 billion) and follows a “Buy and Make” structure.
- Twelve aircraft will arrive flyaway; the remaining 48 will be built in India through a partnership with domestic industry.
- Tata Group, Mahindra, Adani Defence, and state-run HAL have all received the RFP as potential local partners.
- Leading contenders are the Embraer KC-390 Millennium, Lockheed Martin C-130J Super Hercules, and Airbus A400M.
Background
The Indian Air Force still operates roughly 100 An-32s, many upgraded with new avionics and engines over the past decade but nonetheless approaching the limits of sustainable maintenance and spares support after more than 40 years of service. The MTA programme has been in discussion for years and is only now reaching the RFP stage. Its “Buy and Make” structure reflects India’s Atmanirbhar Bharat push for defense self-reliance: whichever foreign manufacturer wins will need to partner with an Indian firm to stand up a final assembly line and an MRO facility on Indian soil.
Each contender brings a different pitch — the KC-390 is the newest design on the table with lower projected operating costs, the C-130J carries the weight of the world’s largest in-service user base, and the A400M offers the largest payload of the three. Some reporting suggests the total requirement could eventually grow to as many as 80 aircraft. Evaluation and contract award are expected to stretch into 2027.
Regional Impact
India’s tender lands squarely inside a broader Asia-Pacific rearmament wave, with regional defense spending projected to climb from roughly $700 billion in 2026 toward $1.0-1.2 trillion by 2030. The A400M’s presence on the shortlist is notable given the same airframe is simultaneously being converted into an ISR and drone-mothership platform in France — a sign of how far transport aircraft requirements now stretch beyond hauling cargo. India’s build-with-a-local-partner model is also worth watching for Turkey’s own ambitions around a domestically developed medium transport aircraft at TUSAŞ, where a similar technology-transfer template could shape how Ankara closes its own capability gap.
FAQ
Why is India replacing the An-32?
The fleet is over 40 years old, and spares and maintenance are becoming harder to sustain despite past avionics upgrades.
How many aircraft will be built in India?
Of the 60 aircraft, 48 will be produced domestically through a local industry partnership; 12 will arrive flyaway.
Who’s competing for the contract?
The Embraer KC-390, Lockheed Martin C-130J, and Airbus A400M are the named frontrunners, pending technical evaluation and local-partnership terms.
Sources
- ThePrint – India seeks 60 new transport aircraft for IAF, invites bids for a $10 billion deal
- Aerospace Global News – India launches $11bn contest for 60 Indian Air Force transport aircraft
- Eurasian Times – Russian “Wild Card” Emerges as India Seeks 60 New 18-30 Ton Multirole Transport Aircraft
- Outlook India – Who Will Replace IAF’s An-32 Fleet? Embraer, Lockheed Martin & Airbus in Race
