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.

 

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[Hawkeye]

It's a known fact, that's why we should scrap MRFA and make Tejas, buy 3-4 squadrons of 5th gen jets as a stop-gap.

 

[Anonymus]

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.

 

[abhinav srivastava]

Now Tejas and AMCA programs may face an engine challenge. Post Pokhran, we witnessed ~10 year delays for GE Engines. Apart from quick fixes, which will be done, we need a long-term engine development program for jet engines, submarines, ships, and tank/heavy military vehicles.

Time to incentivize private companies to start with smaller engines and move up quickly. Government labs/PSUs should take up the bigger engine projects and develop them within timelines. Testing infrastructure should also be developed for timely testing and feedback.

 

[Alok Gupta]

Instead of building them in India, complete MRO facilities and spare parts localization should be part of the deal. This will bring in some ToT as well as manufacturing capabilities of the non-critical components. However, it is high time for India to start to study and duplicate foreign defence products. There needs to be a concentrated effort to develop engines of various types.

 

[nara]

Local production means money spent locally, local jobs, local markets...even if it costs 30% more, more than that may come back as taxes or GST etc. This is a very foolish reason to not go local, in my opinion. Not to mention any new skills or other tech benefits.

 

[Mc Addy]

If we can meet the schedule,forget the cost , get to work.

 

[Raja Raja Cholan]

Only if this happens, but I doubt it will ever happen. If there was a will in the GoI to prioritise and procure MRFA, it would have happened almost two decades ago. The MoD is very confident that Tejas Mk1A and Mk2 will fulfil the stopgap issue in the IAF. They are even more confident that a fifth-gen fighter, AMCA, will be inducted into the IAF's inventory, so what's the hurry and worry? But the question is, when will the first order of Tejas Mk1A be delivered to replace critically depleting fighter squadrons in the IAF? With persistent delays in engine supply and other issues cropping up, it never seems to cease.

 

[Somnath Sinhababu]

MRFA was not for HAL. It was for private companies so that India could have an option other than HAL. If L&T, Mahindra, or TATA were to manufacture, say, the Rafale in India, it would boost our ecosystem. These private companies would get ToT, and in the future, it would be useful. Manufacturing the Rafale in India with full ToT and source code actually makes sense. If orders are higher, the cost will go down. We could also export it from India. India should have considered the M88 engine for the Tejas Mk2 as well rather than the GE F414.

 

[Abhishek Nag]

Su-57 under Make in India will be cheaper than Rafale. But India needs to find a way to print $300 billion without causing inflation to jumpstart manufacturing.

 

[P.K Senapati]

It is worthy to make in India. We learn new technology, we can maintain it, and it can have local spare parts. We can market it to other friendly countries.

 

[raj0072000in]

Pls. have a time bounded plan to complete 42 squadron considering in mind future retirement of jaguar, mirage & mig 29. Without local Engine, even make india fighter has not much meaning.

 

[Anuj]

India should procure Su-57 and get the most of the technologies. It is important to Make in India so that you have the capacity to build, and maintain these expensive machines during crisis times when you need them.

 

[P10]

Local production helps in securing parts, spares, and LRUs during conflict and sanction times and provides lifetime support when the OEM stops production.

Full Rafale production won't happen. Partial production with FAL and local spares production must be preferred with faster local weapons integration.

But a 100+ unit order is very important to maintain fleet strength and commonality over a longer time.

A smaller order size creates more dependencies and headaches for the procurement team.

 

[Leored]

Don't calculate cost if you are not economist. Money finance work differently. Expensive the product batter will be GDP so is profit technology and growth. You can earn 1rupee on pen sale but lakhs on car so is fighters.

 

[Senapati]

Indigenious program like Tejas and AMCA can continiue on its own speed.
Need of the hour is urgen requirement of 5th generation Su57 with 177S high performance stealth engine under make in India.
It has many benefits like local spare part TOT generation of employ.ent .

 

[Vasugali]

Indigenious program like Tejas and AMCA can continiue on its own speed.
Need of the hour is urgen requirement of 5th generation Su57 with 177S high performance stealth engine under make in India.
It has many benefits like local spare part TOT generation of employ.ent .

Yes. Tejas MK2 , AMCA , Astra MK3, 120 kn engine will take their own time. In the meantime, it is necessary to safeguard the interests of the country . For this SU 57E , R37 M and Brahmos 2 hypersonic missiles and cheaper substitute like KH 69 Subsonic but stealthy missiles would be required even at the risk of CAATSA sanctions as Trump has openly come out with his opinion. No need to worry if US stops GE 404/413 engines. India can use 177S engine in its place

 

[Sacrafago90]

Relying on PSU for decades to fulfill fighter squadrons with infinite excuses & delays,putting National Security & operational readiness at jeopardy is absolute lunacy.
Time to execute the MRFA even if it costs more,if required buy them off the shelf in 2 phases,then also it is required.
We all know HAL & ADA adherence to timelines,so skipping the bullshit to fill with total indigenous Fighters waiting for another 2 decades should be kept aside.

Tejas MK1A all fighters will be delivered only by 2034-35(180 units) & Tejas MK2 will enter production by 2032-33.
By the time 120-140 units will be delivered by 2037-38 they will be already obsolete.
Ideal would be buying another 36 Rafale F4 off the shelf along with 18-24 used F3 variants from French Airforce as stopgap till the 36 units arrives.
Rest collaboration with KAI for 80-90 KF21 with TOT & local production,with options to get 5th generation variant in future,with RR engines which they they are vying for Export market.
Along with it Su30MKI upgrade along with 72-75 Su57E locally produced.

 

[Pravijay]

@Sacrafago90
Bureaucrats stop thinking thinking, thinking and DO something.
Buy under Govt to Govt deal 70 F -35, 70 SU 75 and 70 - 36= 34 Raphaels, at the best offered TOT.
Buy them NOW.

 

[saikot chaki]

This way no one can come to the conclusion one has to take decision based on the current scenario that we are lacking in squadron so even if it take 30% more cost is think we should go ahead this way we can deposit our own jet engine and a better fighter jets please do not get confuse and do be indecisive because it is a question of our country security.

 

[kunitesh]

Getting all 114 jets planned under MRFA is crucial to bridge the current squadron and capability gap in IAF . Higher cost of manufacturing in India should not be a criteria if this is helping build aerospace ecosystem in country. Already TASL will make entire fuselage and Safran has MRO opened in India. This will enable private companies in India the exposure to manufacture world class fighters. We have already seen what they done for drone ecosystem in India. It is risky to rely completely on HALs plan of MK2 and AMCA as there is all chance of delays going by their past history. MRFA and 5-Gen deals are extremely crucial to give IAF teeth to deter our always conspiring neighbours.

 

[NarendraJain]

India should decide to buy say Su57E off the shelf from Russia for immediate requirement, after signing a ToT for its manufacturing in India for the world. While the off the shelf will take 2 years and its manufacturing in HAL on already operating Su30 platform with skilled manpower to manufacture Russian planes is ready, manufacturing will start right by the time the off the shelf purchase supply is completed. Enough time is lost in discussing other options pushing us to this position of emergency. Modi should close this in a time bound manner by Dec 2025 and invite Vladimar Putin as Republic day chief guest on 26 Jan 2026.

 

[navinbijoy]

Go for 6 squadrons SU 57, 6 Squadrons Rafale F4 with TOT .
Doesn't matter they are 5 th Gen or not.

We are using MIG till now.

30% Increase is no problem.

Russia Ukraine war will/ may delay parts of Jet.

Dassault is full with order book till next 3-4 years.

Somenone is talking about Tejas 3-4 squadrons, where are the engines, no one is believing HAL.
What if Uncle Sam , orders GE to stop supplying engines.

After MIG , Jaquar is in the list to be phased out.

Some people have high expectations regarding AMCA , but these are in design stage, it takes decade to come to production.

By the time u have to retire the aging flights.

 

[Abhish]

I think all 114 order should be of Rafael itself, and apart from that buy 3 squadrons of su 57e the model showcased in aero india. The 3 squadrons here will be a direct g to g deal, and Rafael under mrfa. Let it be costlier, as we can definitely sustain these costs, income tax collection is at all time high, gst collection is also all time high plus if it feels costlier than take a loan of similar conditions taken for bullet train project from Japan. Also, I think there is a need of hour to create a separate department like nhsrcl in case of high speed train corridors which will avoid any unnecessary delays in terms of politics and paperwork.

 

[Asr R]

Looking at immediate & short-term requirements, I think we should split the MRFA program, i.e., 72 Rafale & at least 72 SU-57s. Rafale can be procured directly via G2G deal with offsets to help gain experience for private players. We must strive to get a license or TOT for the M-88 or its uprated variants, while exploring it as the replacement of the F-404 in current Tejas tranches. The M-88 being lighter than others, its current version might be suitable for twin-engine TEDBF/ORCA. Therefore, these programs must be expedited on an SOS basis because these may give us usable products sooner than the Tejas Mk2 or AMCA, as they need development of newer variants, while the TEDBF/ORCA designs might be optimised for the current M-88 easily, i.e., eliminating the time required for engine development.

As for the SU-57 deal, the initial 24-36 might be purchased directly, with a further 72-120 through 100% TOT, including Project 177S & the AL-51 engine. Every air force needs various types of single-engine & twin-engine aircraft in light-weight, medium & heavy-weight categories. Through current programs, our IAF is more or less sorted in most categories, but the twin-engine, heavy-weight, long-endurance, i.e., SU-30 category, where we do not have any program underway. The SU-57 is very suitable as a cost-effective & modern, more importantly, it's available & adaptable, successor for Su-30s, which will need replacement in large numbers by 2040-45, looking at the requirement to dominate the IOR region.