As Local Production of Foreign Jets Under MRFA Proves 30% More Expensive, Calls Grow to Back Indigenous Tejas and AMCA

A recent industry analysis indicates that manufacturing foreign fighter jets in India under the proposed Multi-Role Fighter Aircraft (MRFA) deal could be nearly 30% more costly than purchasing them directly from the manufacturer.

This significant price difference is fuelling a debate among defence experts about the financial wisdom of the plan, prompting calls for the government to prioritise India's rapidly advancing indigenous aircraft programs.

The MRFA initiative, a multi-billion dollar project intended to equip the Indian Air Force with 114 new fighters, has always included a major "Make in India" component.

However, the higher costs associated with setting up new production lines, transferring technology, and training a workforce for foreign aircraft are now under intense scrutiny.

Experts suggest that while local production can boost domestic manufacturing, the premium price may divert crucial funds from other strategic defence priorities.

The Ministry of Defence has yet to make a final decision on the path forward for the tender, which has global contenders like Dassault's Rafale, Boeing's F-15EX, and Saab's Gripen.

This debate comes at a time when India's domestic aerospace sector is demonstrating significant progress. The country is actively developing a robust pipeline of homegrown fighter jets.

This includes the Hindustan Aeronautics Limited (HAL) Tejas Mk1A, for which an order of 83 jets is already being executed, and its more advanced successor, the Tejas Mk2.

Furthermore, ambitious projects like the fifth-generation stealth Advanced Medium Combat Aircraft (AMCA), the naval Twin Engine Deck-Based Fighter (TEDBF), and the HJT-36 Sitara trainer aircraft signify a maturing industrial capability.

Proponents of this view argue that India has moved beyond needing foreign production lines simply for the experience.

As an alternative, some analysts propose a dual approach to modernise the air force fleet. They recommend that instead of costly local manufacturing of foreign jets, India could make a direct, off-the-shelf purchase of a smaller number of aircraft, such as an additional 60 Rafale jets, to meet immediate operational gaps.

The substantial savings from this strategy, they argue, could then be reinvested to accelerate the development and large-scale production of the Tejas Mk2 and the strategically vital AMCA project, securing long-term self-reliance and technological leadership in aviation.

This would align with the nation's ultimate goal of building a world-class defence industrial base.

 

[Vishwanath Vijay Thomre]

No, without TOT and source code, there should be no jet procurement. The 30% cost won't be as much of a headache as being dependent on that country for weapons and spare parts. We already see how America uses arm-twisting to make things work, even though France and Russia never create problems with supplying parts and weapons. Still, we don't know future scenarios, so without TOT, please don't buy planes unless the number is less than 54.

And at least buy 100 Rafales and 60 to 80 SU-57s, as our squadron strength has been reduced to 29 and is further going to be reduced by at least 12 squadrons after 2030. These 20-30 planes are not going to help our air force.

Absolutely agree to your point. Any costly deal and procurement for fighter jets without ToT, local production and full control will be more dangerous than the 30% additional cost. We are already suffering with Rafale jets where we are unable to add our Radars, EWS and munitions. The cost of using foreign munitions is way higher than the 30% extra cost. Really hard to understand the confusion and dilema of GOI, MoD and IAF in choosing and procuring the jets. As F35 is out of question now (which in a way right move) only option for 5th gen is SU57 just we need to hasten up the procurements. If the other option is of Rafale (as per the news in the market) we should ask for the integration of home grown technologies beforehand of the deal, Rafale new version should be sought which is based on AI integration this will definately add edge. But whatever the deals are they should be on very fast track basis and should get concluded in a 2-3 years span on ground.

 

[sushil_ss]

We get the experience and manufacturing ecosystem in return. So even if it costs 30% more, it shouldn't matter. It could boost make in India and benifit our future aircraft endeavours.

 

[Doc]

1) 63,000 crores for 26 aircraft, was a G2G deal signed some months back - I missed the NDTV report date-lined 28 April. What it amounts to - no not what the deal covers but, suffices to say the unit price is mind-boggling and out of this world - is 2,423 crores per aircraft. Did it mean life-time costs?
Only a close scrutiny of the said report will shed some light.

2) A Su-57 costs 40 million USD (3,326,600,000 INR, which amounts 332.66 crores). Some estimates place it 100 million USD (831.65 crores).

3) Against this, a Tejas Mk1A costs 618 crore (approx 74 million USD).
Even if we take the upper-limit cost of the Su-57, the difference is roughly 25-30%.
However, what we are forgetting is that, in the Su-57, we are getting a 5th Gen, battle-proven fighter, against one that is still heaving onto the horizon due to lack of engines.

4) So, my suggestion is that MRFA import of 3-5 squadrons, with option to licence-produce, with full ToT and export sanction, would be a real boost to our depleting sqn-strength (roughly 29).

5) Incidentally the figures quoted at Para 1 were for the Rafale M. So, today's cost don't justify further inductions of the Rafale for the IAF.

Politics and detailed study only will resolve the problem, though I'd still root for our Tejas.
I'm trusting my conversion figures are right !!