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he Defence Ministry has issued tenders worth around ₹1 lakh crore

ICICIdirect Research 13 Aug 2026 DISCLAIMER

News: According to media sources, The Defence Ministry has issued tenders worth around ₹1 lakh crore for the procurement of new Military Transport Aircraft (MTA), with the programme likely to involve competition between Lockheed Martin’s C-130J and Embraer’s C-390. Indian companies including Mahindra & Mahindra, Tata, Adani Defence and Hindustan Aeronautics have been invited to participate, with the selected Indian partner expected to manufacture the aircraft locally alongside a global OEM. Embraer has already announced a partnership with Mahindra for the MTA programme, while Tata is manufacturing the C-295 MTA in India.

View: This represents a significant opportunity for Mahindra & Mahindra to deepen its presence in India’s aerospace and defence manufacturing ecosystem. Its partnership with Embraer could position Mahindra as the Indian industrial partner for the C-390, potentially giving it access to advanced aircraft manufacturing, technology and a large defence order pipeline. We shall closely monitor developments in this space.

Impact: Neutral

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