Lockheed Martin is looking to expand aircraft manufacturing in India if it wins the Indian Air Force’s (IAF) $10.5bn medium transport aircraft (MTA) contract.
The US aerospace firm has outlined plans to scale up its involvement in India, including new manufacturing and support facilities, should its team succeed in the contest to supply 60 medium transport aircraft to the IAF.
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The Indian government issued the procurement tender in August this year, estimated at around $10.5bn.
India’s Ministry of Defence emphasised that local companies would lead the acquisition, forming joint ventures with global original equipment manufacturers.
According to the ministry, the majority of the 60 aircraft will be built domestically as part of efforts to increase indigenous manufacturing.
Lockheed Martin, which teamed up with Tata Advanced Systems Limited (TASL) offered its C-130J aircraft for the MTA programme.
Under the proposal, 12 aircraft would be delivered in flyaway condition, with the remaining 48 assembled in India.
In response to a question from the Press Trust of India, Lockheed Martin global business development and strategy senior vice president Dan Tenney stated that the firm intends to “expand that capability with production and other things that occur within India.”
In addition to the new aircraft, Lockheed Martin’s proposal includes a plan to modernise the IAF’s existing fleet of twelve C-130J aircraft to match the upgraded configuration offered in the bid.
This could result in a standardised fleet of 72 medium tactical airlifters.
Lockheed Martin has a long-standing collaboration with TASL, which currently produces components and empennages for the C-130J under existing contracts.
In 2024, the two companies signed a teaming agreement aimed at establishing a maintenance, repair, and overhaul (MRO) facility for the C-130J in India and expanding assembly capabilities, both subject to approval from the US and Indian governments.
Globally, the C-130J replaces older C-130E and some C-130H aircraft, offering improved climb performance, range, cruise speed and shorter take-off and landing distances. It features a two-person cockpit with integrated digital avionics, multifunction displays, GPS and dual inertial navigation, as well as defensive systems, colour radar, a digital moving map and an automated flight-control system.
The aircraft also has updated turboprop engines, fuel and environmental systems, ice protection and cargo-handling equipment.
The main rival to the Lockheed Martin-Tata bid comes from Embraer and its Indian partner, Mahindra Group, who have proposed the C-390 Millennium.
In October 2025, Embraer and Mahindra entered a strategic cooperation agreement to jointly advance their proposal for the IAF programme, building on a memorandum of understanding signed earlier in the year.
Recently, Mahindra announced that Nagpur, Maharashtra, has been identified as a potential site for the final assembly line for the C-390 Millennium, contingent on the selection of the aircraft and an official order from India.
The C-390 Millennium is a military transport aircraft intended for missions including troop and cargo movement, airdrops, medical evacuation, search and rescue, firefighting and humanitarian operations. It can carry payloads of up to 26 tonnes and operate from temporary or unpaved runways.
Other Indian companies vying for the contract include Adani Defence & Aerospace, Hindustan Aeronautics Limited, and Reliance Defence, all of which are expected to partner with international manufacturers if selected.
