India May Have to Pay $2-3 Billion Extra for Domestically Produced Fighter Jets in MRFA Program

The Indian Air Force's (IAF) ambitious plan to acquire 114 advanced fighter jets under the Medium Role Fighter Aircraft (MRFA) tender is facing a significant cost hurdle. A key element of the tender is the "Make in India" initiative, requiring substantial local production of the chosen aircraft.

However, this mandate is projected to add a hefty $2.2-3.4 billion to the program's cost, effectively increasing the price of each jet by $20-30 million compared to buying them directly from the original equipment manufacturers (OEMs).

The MRFA tender has attracted proposals for six advanced fighter jets, including twin-engine contenders like the Boeing F/A-18E/F Super Hornet Block III, Eurofighter Typhoon, Russian MiG-35, and Dassault Rafale, as well as single-engine options like the Lockheed Martin F-16 Block V (F-21) and Saab Gripen-E. While each offers cutting-edge capabilities, the costs associated with establishing local production lines in India are substantial.

Several factors contribute to this cost increase. Building a dedicated assembly line in India requires significant upfront investment in facilities for component manufacturing, assembly, testing, and maintenance. Importing specialized equipment and machinery from the OEM further adds to the cost. Training local personnel to meet the stringent standards and precision required for fighter jet production involves considerable time and expense.

The initial production phase is also expected to be costly, with a slow ramp-up period as Indian facilities and personnel gain experience with new processes and technologies. The IAF likely won't see cost benefits from local production until the later stages of the program.

Adding to the cost challenge is the potential expense of technology transfer agreements. Each OEM would need to share key technologies for the IAF to maintain and operate the jets domestically, and these agreements often come with premium pricing.

These cost projections raise serious questions about the viability of the "Make in India" component of the MRFA program. While the initiative aims to boost domestic manufacturing and reduce reliance on foreign suppliers, the significant cost increase associated with local production might force the IAF and the Ministry of Defence to re-evaluate their strategy.

Despite these challenges, the IAF remains committed to the MRFA program, recognizing its importance for maintaining India's air combat capabilities. While acknowledging the higher costs associated with local production, the IAF emphasizes the long-term benefits of developing a robust domestic defence manufacturing ecosystem, which could lead to cost savings in future projects as expertise and infrastructure develop.

 

[Capt Mahendra]

Just put it out of its misery man. 2.2-3.4 billion dollars is SO much acceleration capital for Tejas MK2 and AMCA, and more much needed Netras. Perhaps one last direct order for 2-4 squadrons if it's absolutely needed, and no more foreign jets after that. I just don't believe MRFA will happen in 114 fighter form. It's too expensive and we're too cheap lol.

If we do spend that much we should be probing if we can use it towards getting 5th gen squadrons online before probably 2040 for a full AMCA one. Even if it's a reduced 72 fighter silver bullet force for stealth strike over 114 non-stealth fighters.

I think this is a serious suggestion. Government IAF and the defence research institutions along with the IIT s should sit together and take a firm decision to enhance the capability of Kaveri engine on a war footing. In the meanwhile set up the infrastructure for commercial production simultaneously so that we catch up on the lost 30 yrs in Kaveri. Some good serious sense should prevail to get out of this procastronation and putting the Air security of the country into serious danger. As our adversary china is moving at breakneck speed on technology and May even surpass the West in terms of technology as well as production capability has already been well established by huge investment and result oriented targetted time line. And our people are still in discussion stage on the production of 4th Gen outdated aircraft.

 

[Rokuth Mk1]

The extra cost should be considered as an investment in the future of India. The knowledge, technology, and experience gained from this will be beneficial to any future projects. Hopefully, it can be used in other civilian sectors as well.

 

[Lakshmi Prasad]

We should not worry about 2/3 billion for the technology we are getting. We have already spent huge amount on indigenous development which has not yielded results.

 

[kunitesh]

It's high time IAF and GOI must take the bitter pill of paying more, start Rafale production in phases with gradual indigenization. Use this opportunity to bargain on the 5-Gen engine technology with France . This will pay off in longer run and make country self reliant in building and mass producing cutting edge fighters.