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The Defence Ministry is seeking 60 multirole transport aircraft and 150 trainers.
The transport aircraft programme is valued at about Rs 1 lakh crore.
The new transports are intended to replace or supplement ageing Air Force cargo aircraft.
Indian companies are expected to lead partnerships with global aircraft manufacturers.
More context
Tata, Mahindra and HAL are among the companies approached for the transport programme.
Around 20% of the transport aircraft would be delivered ready-made.
The remaining aircraft would be manufactured domestically with more than 60% indigenous content.
Mahindra and Embraer are offering the C-390 Millennium.
Tata and Lockheed Martin are offering the C-130J Super Hercules.
Domestic production could create opportunities for component makers and smaller suppliers.