How India's Acquisition of 110 Upgraded Rafale F4 Fighter Jets Under MRFA Tender Could Cost $27 Billions, Exceeding $20 Billion Budget

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.

 

[R. Singh]

Better make Air force version of TEDBF as ORCA (169 numbers) powered by made in India GE-414 engines and buy Su-57 or F-35 JSF ( with Source code) through G2G route !

 

[sanket]

MRFA should include 5th Gen Fighter jet then it will better to choose best Fighter jet with Life cycle cost & their Tech Features

 

[Enforcer]

If the French had developed their own 5th gen, I probably wouldn't push Indians to buy F-35. Rafale in the time when 5th gen are flying across the world is bad idea. I even wish Navy could just get F-35C at this point too. Navy and Air force both operating F-35.

People on this site are not understanding how much more advanced F-35 is to any other 4th gen plane. It will be a massacre if they ever face off.

The only fear is someone developing a some advanced airborne radar that is able to detect 5th gen like any other plane. At that point, advantages will skew back in favor of 4th gen jets.

 

[Somnath Sinhababu]

MRFA does not make any sense now. Buy some F-35/SU-57 and spend the rest of the budget directly on Tejas and AMCA. Work on the war front. Induct AMCA by 2030-31. If you work on the war front then you will be able to do it. Why are the IAF people not understanding this simple logic? There is no benefit in buying 4th gen fighters again through MRFA. This work should have been done long ago. This drama has been going on for 20 years.

 

[abhinav srivastava]

Don't import gold plated 4th gen jets in large number. We will be producing a large number of 4th gen jets in coming years. We will produce 5th gen AMCA after 15 years. Better to limit costly 4th gen jets imports and get a few squadrons of 5th gen jets.

 

[tonypepperoni]

27 billion for 110 rafale? Dang.
that is approx
329 F-35A or
334 J-20

IAF is getting ripped off.

 

[Anant]

MoD has allocated 20 billion USD for MRFA? Across 114 jets, that comes to about 175.43 million USD per jet. Yeah, you aren't getting anything for that price point other than maybe the Gripen or the Su-35. If it is the former, the Tejas Mk 2 orders may well be impacted. If it is the latter, then you may as well go for new re-engined Su-30MKIs in the Super Sukhoi configuration.

Jets like the Rafale, Typhoon, F-15EX, and F-16V are not coming at that price point once you factor in costs for spares, some weapons, ToT, etc. As for the MiG-35 and F-18, well, the former is obsolete, and the latter is winding its production run down.

 

[tonypepperoni]

2025 is here.
Only IAF pays 245 Million for a 4th generation aircraft.
Other nations can build at almost four 5th generation aircraft for that price.

 

[FIDA INDIA]

What TOT here? We have most of the technology and rest are under development.

 

[SURESH RAO]

French are business minded and they charge exorbitant rate. I bet that their production cost is much much less. Yet they want to play around

Moreover, by the time India receives F4, they will start marketing F5.

And they will try to do bumper business with the upgrade from F3 to F4. And F4 to F5.

Eventhough the engine for F3 and F4 remains the same, I think F5 will come up with a new engine with the thrust of 90 kN

 

[Himanshu Swain]

IAF does not need 110 Rafale due to high cost. You have 36 and buy another 54 Rafale to deploy 5 Squadrons. 4 against China & 1 for Pak. 54 Rafale would cost arround 12 Billion dollar. Invest Rest 8 Billion in AMCA Engine RD And other force multipliers. Also remember you have S-400 deployed over Pakistan. You already have achieved air superiority

 

[rocky]

MRFA does not make any sense now. Buy some F-35/SU-57 and spend the rest of the budget directly on Tejas and AMCA. Work on the war front. Induct AMCA by 2030-31. If you work on the war front then you will be able to do it. Why are the IAF people not understanding this simple logic? There is no benefit in buying 4th gen fighters again through MRFA. This work should have been done long ago. This drama has been going on for 20 years.

Exactly there is going to be no war in the recent future. It's probable only after china surpasses usa until then they are waiting so using this time to invest heavily on amca would prove valuable than wasting 30 billion on a 4th gen.

 

[Anant]

27 billion for 110 rafale? Dang.
that is approx
329 F-35A or
334 J-20

IAF is getting ripped off.

329 F-35s? Where on Earth are you getting that 82 million USD apiece figure from? You do have to consider things like spares, other equipment, weapons, export profit margins, etc.

A new F-35 costs over 200 million USD apiece for export excluding weapons. Just look at Greece's and Romania's deals last year for reference.

 

[tonypepperoni]

329 F-35s? Where on Earth are you getting that 82 million USD apiece figure from? You do have to consider things like spares, other equipment, weapons, export profit margins, etc.

A new F-35 costs over 200 million USD apiece for export excluding weapons. Just look at Greece's and Romania's deals last year for reference.

Australia bought 72 f-35 and paid aprox 92 million usd for each.

The U.S. can produce it for around 80 million each.

But don't worry about India, they aren't getting any F-35, even if they are paying 300 million each.

 

[Ajay Krishna]

High time to scrap MRFA & order atleast 36 Rafale F4, provided France is able to deliver it before 2030. Along with the order for 26 Rafale M, dassault must be pressurized to start domestic assembly with maximum ToT. This will lead to early delivery by 2030, considering the limited assembly capacity of 12-24 fighters in France, not to mention the existing large order backlog.

Simultaneously, we need to order 72-90 Euro fighter typhoon, preferably with domestic assembly & maximumTOT. Since the EFT consortium has better assembly capacity, it will be able to deliver the initial 36 jets quickly even from European assembly lines. By then, additional assembly line can be established in India.

With both the orders, the IAF will have 6 new squadrons by 2030. Inducting EFT will add to the logistical challenges, but there is no other way since Dassault is unable to ramp up assembly capacity to deliver 110 jets within the next decade.

Further, 5 Gen fighters must not be clubbed with 4.5 gen purchase, as the IAF will need both 4.5 & 5 Gen fighters. The IAF must separately evaluate both Su-57 & F-35 fighters & chose the best fighter based on logistics, technology access, network integration, training, geopolitical challenges, etc.

Even if F-35 is selected, India must convince Russia to jointly develop a 5.5 Gen twin seater Su-57, which will be ideal to replace the Su-30 mki fleet.

 

[Anupom]

Do not waste 20-25 billion dollar on old jets! Invest this money on AMCA & it's engine development and buy some 5th gen fighters and accelerate the Tejas mk1A production and development of Mk2. Target 10 years to fulfill all of this achievement.

 

[Aravind]

Why not buy 36 Rafale directly from France and get Su-57 with full ToT including the engine, because Russia said even they are okay with Indian rupees for buying the Su-57?

 

[Preet]

We don't have a giant hydraulic stamping press to build big aeroplane surfaces. HAL only ordered a giant press recently some specific tech to make blades of rafale are also not there.

As need arrives, equipment will be bought, but this isn't the ToT we seek. Honestly, Rafale has nothing to offer as ToT to India. Does Rafale have DAS? Or EOTS? Or laser decoys? GaN radar? MUMT? If all these things are missing in Rafale, what are they going to give us in ToT? 🤣

 

[M S Chatterji]

10-20 years ago importing costly 4th gen jets in large numbers would have made sense, not anymore. Future is 5th gen jets. We should cancel MRFA circus, import 2 or 3 squadrons of Rafales with modification and mid life upgrade options. Let Tejas fill up numbers for 4th gen fighter jets. Since AMCA is atleast 15 years away, procure 2or 3 squadron of SU57 with India specific changes.