Birbal
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Technology hurdles that India has to pass to create the AMCA and what foreign participation I feel is necessary:
Airframe & Stealth
India has good metal and composites technology as proven by the Tejas, and should have little trouble with the materials for the airframe for the AMCA. Combining the Tejas experience with knowledge gained from the Rafale and FGFA assembly should make it straightforward to design a 5th generation airframe.
As for stealth, stealth shaping is not technologically difficult, and India will not have trouble with the necessary simulations and testing. Stealth coatings are a bit harder, and FGFA technology will be important, but India has good materials scientists and is also capable of developing the necessary coatings indigenously.
Avionics
India has already developed displays, FBW systems, world-class inertial navigation, etc. for the Tejas. The two components it has not made indigenously are the HMD and radar. The HMD, while not trivial, is definitely something that India will be able to develop in time for the AMCA.
The major problem is developing an AESA radar. India as been working on AESA development for the Tejas since the late 90s, and though it will have to buy a foreign AESA radar for Tejas mk.2, hopefully this radar will be ready in time for the AMCA. Technology transfers from the FGFA and possibly Rafale and Super Su-30 will be very helpful here. Certainly, making a fifth generation radar is no easy task. However, India should be prepared to compromise for a shorter range indigenous radar if necessary. The important thing is that if India develops an indigenous radar, it will be much harder to jam, as foreign countries wouldn't know the exact details of the radar.
Propulsion
The Kaveri will power the AMCA, but it has been experiencing serious delays, which has caused it to be delinked from the LCA Tejas program. Now, with French and Russian help, we're improving the engine, and should be able to utilize foreign help to bring it up to scratch as a 4th generation engine. Of course, we will need high temperature materials and other good technology for a 5th generation engine. Considering that the Kaveri was the first major engine project in India, this could prove a challenge. Nevertheless, an upgraded Kaveri should be sufficient to at least power the mk.1 variant of the AMCA. It might end up being underpowered relative to the PAK FA or the F-22, but will certainly still outperform the F-35.
Armament
India is already working on the Astra missile. The mk.2 version of the Astra missile will be the most important weapon for the AMCA. This will certainly be ready in time. As for the other weapons, they can be foreign supplied and indigenous weapons can be integrated as they are developed using experience from the Astra and Brahmos programs.
Manufacturing
HAL certainly will have plenty of experience in high volume assembly and manufacturing thanks to its assembly of the Su-30MKI, Rafale, and FGFA in addition to the manufacturing of the Tejas.
Though the manufacturing base in India is not as big as that of the US or Russia, I expect that any delays in the serial production of the AMCA will be more than worth the cost savings compared to expensive Western manufacturers (take a look at the insane F-35 costs).
Conclusion
All of the challenges present in developing the AMCA are surmountable. The Tejas was an important step in the development of indigenous fighter aircraft. The two biggest stumbling blocks are the radar and engine. With foreign help, the Kaveri will become sufficiently powerful to be utilized in the AMCA. The radar will be much harder to develop indigenously. Nevertheless, even a suboptimal indigenous radar is a better choice than utilizing foreign help.
Airframe & Stealth
India has good metal and composites technology as proven by the Tejas, and should have little trouble with the materials for the airframe for the AMCA. Combining the Tejas experience with knowledge gained from the Rafale and FGFA assembly should make it straightforward to design a 5th generation airframe.
As for stealth, stealth shaping is not technologically difficult, and India will not have trouble with the necessary simulations and testing. Stealth coatings are a bit harder, and FGFA technology will be important, but India has good materials scientists and is also capable of developing the necessary coatings indigenously.
Avionics
India has already developed displays, FBW systems, world-class inertial navigation, etc. for the Tejas. The two components it has not made indigenously are the HMD and radar. The HMD, while not trivial, is definitely something that India will be able to develop in time for the AMCA.
The major problem is developing an AESA radar. India as been working on AESA development for the Tejas since the late 90s, and though it will have to buy a foreign AESA radar for Tejas mk.2, hopefully this radar will be ready in time for the AMCA. Technology transfers from the FGFA and possibly Rafale and Super Su-30 will be very helpful here. Certainly, making a fifth generation radar is no easy task. However, India should be prepared to compromise for a shorter range indigenous radar if necessary. The important thing is that if India develops an indigenous radar, it will be much harder to jam, as foreign countries wouldn't know the exact details of the radar.
Propulsion
The Kaveri will power the AMCA, but it has been experiencing serious delays, which has caused it to be delinked from the LCA Tejas program. Now, with French and Russian help, we're improving the engine, and should be able to utilize foreign help to bring it up to scratch as a 4th generation engine. Of course, we will need high temperature materials and other good technology for a 5th generation engine. Considering that the Kaveri was the first major engine project in India, this could prove a challenge. Nevertheless, an upgraded Kaveri should be sufficient to at least power the mk.1 variant of the AMCA. It might end up being underpowered relative to the PAK FA or the F-22, but will certainly still outperform the F-35.
Armament
India is already working on the Astra missile. The mk.2 version of the Astra missile will be the most important weapon for the AMCA. This will certainly be ready in time. As for the other weapons, they can be foreign supplied and indigenous weapons can be integrated as they are developed using experience from the Astra and Brahmos programs.
Manufacturing
HAL certainly will have plenty of experience in high volume assembly and manufacturing thanks to its assembly of the Su-30MKI, Rafale, and FGFA in addition to the manufacturing of the Tejas.
Though the manufacturing base in India is not as big as that of the US or Russia, I expect that any delays in the serial production of the AMCA will be more than worth the cost savings compared to expensive Western manufacturers (take a look at the insane F-35 costs).
Conclusion
All of the challenges present in developing the AMCA are surmountable. The Tejas was an important step in the development of indigenous fighter aircraft. The two biggest stumbling blocks are the radar and engine. With foreign help, the Kaveri will become sufficiently powerful to be utilized in the AMCA. The radar will be much harder to develop indigenously. Nevertheless, even a suboptimal indigenous radar is a better choice than utilizing foreign help.