The Indian Air Force's (IAF) plan to acquire 110 multi-role fighter aircraft (MRFA) could become significantly more expensive than initially anticipated. A Ministry of Defence (MoD) official has indicated that opting for the advanced Rafale F4 configuration, as opposed to earlier variants, may drive the total cost to around $27 billion, considerably exceeding the allocated budget of $20 billion.
This potential cost increase is linked to several factors. Firstly, the UAE's recent purchase of 80 Rafale jets, valued at $16 billion in 2020, provides a benchmark. Adjusting for inflation, that deal would be worth approximately $17.6 billion today. India's requirement for 110 jets would inherently increase the cost. Furthermore, the inclusion of technology transfer (ToT) in the Indian deal adds another layer of expense.
The MoD official highlighted that the Rafale F4 boasts significant enhancements over its predecessors. These include advanced features like the Thales Scorpion Helmet Mounted Display, MBDA’s MICA NG missile, and improved satellite communications. These upgrades, combined with the complexities of local production and ToT, are expected to push the acquisition cost well beyond the initial $20 billion projection.
While the Acceptance of Necessity (AoN) for the MRFA program is still pending from the finance ministry, the MoD official emphasizes the strategic importance of these advanced capabilities for India's defence posture in the current geopolitical climate. However, the escalating cost presents a significant challenge to the government's financial planning and defence budget.
This situation presents a complex dilemma for the Indian government. Choosing to proceed with the Rafale F4 acquisition could necessitate difficult decisions, such as cost-sharing agreements with Dassault Aviation, phased payments spread over a longer period, or even a reduction in the number of aircraft purchased.
Alternatively, the IAF may need to reconsider and evaluate other fighter aircraft options that could fulfill its operational requirements within the existing budget constraints. The final decision will ultimately depend on a careful balancing of operational needs and financial realities.
