State-run Hindustan Aeronautics Limited is hoping that the 'Combat Hawk' will be an ideal export product besides being used domestically.
Highly placed sources said a foreign country has already evinced interest in the product.
They said that such an aircraft, slower than a fighter jet, can be useful for operations in forested areas and in low mountains.
Moreover, many countries cannot afford to spend big on bigger fighter aircraft and hence the project has a lot of export potential.
Also Read
HAL had last year signed an MoU with BAE Systems UK for upgradation of Hawk Mk132, development of Combat Hawk for Indian and export markets and maintenance solutions for supporting Jaguar and Hawk fleet.
The aircraft has the capabilities to be used as a ground attack aircraft or for air defence.
The aircraft is being produced at HAL under licence from BAE. The first aircraft was handed over to IAF in August 2008.