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To significantly enhance the operational readiness of the Indian Air Force (IAF), the Ministry of Defence has outlined a roadmap to finalise several major procurement deals during the 2026-27 financial year.
As disclosed to a parliamentary panel, these mega-contracts include the acquisition of 114 Rafale combat jets, a fleet of up to 60 Medium Transport Aircraft (MTA), and advanced airborne surveillance systems.
According to a recent report submitted to the Lok Sabha by the parliamentary standing committee on defence, the IAF will see a substantial 37.03% increase in its capital budget compared to the 2025-26 estimates. This surge in funding is strictly earmarked for vital new acquisitions.
Major allocations include the Multi-Role Fighter Aircraft (MRFA) programme, combat support platforms like Tejas MK1A jets and Airborne Early Warning and Control (AEW&C) systems, the MTA project, and long-endurance military drones, alongside settling existing financial commitments.
A central highlight of the modernisation push is the multi-billion-dollar MRFA initiative, which the Defence Acquisition Council (DAC) formally approved in February 2026.
Valued at an estimated Rs 3.25 lakh crore, this programme will equip the IAF with 114 Rafale fighter jets.
Crucially, to promote the government's 'Make in India' initiative, these aircraft will be manufactured domestically through a partnership between France’s Dassault Aviation and an Indian firm.
This new procurement will complement the IAF's existing fleet of 36 Rafales, providing logistical and operational commonality.
In its report, the committee strongly urged the IAF to efficiently utilise these funds to upgrade its technological edge in response to the current and evolving geopolitical climate.
In parallel, authorities have given the green light to a Rs 1 lakh crore plan to acquire 60 Medium Transport Aircraft.
This new fleet is urgently required to replace the IAF's ageing, Soviet-origin Antonov An-32 planes, which have served as the tactical workhorse of the military's transport wing for decades.
Under the approved acquisition strategy, 12 aircraft will be purchased in a ready-to-fly condition, while the remaining 48 will be built within India.
Global aerospace giants currently competing for this lucrative contract include Lockheed Martin with its C-130J Super Hercules, Embraer offering the C-390 Millennium, and Airbus Defence and Space pitching the heavy-lift A-400M.
The defence ministry also briefed the parliamentary panel on the strategic necessity of "combat enablers"—specialised platforms such as mid-air refuellers, AEW&C aircraft, and electronic intelligence systems.
Officials noted that these assets act as critical force multipliers.
They not only expand the operational range and radar coverage of the air force but also provide frontline commanders with real-time battlefield data and electronic warfare dominance, substantially boosting the overall combat effectiveness of all three branches of the armed forces.
Beyond foreign collaborations, the IAF remains deeply focused on domestic capacity building and self-reliance. The report highlighted the creation of a dedicated Directorate of Aerospace Design (DAD).
This newly established body is tasked with bridging the gap between the military, academic institutions, research and development organisations, and private industries.
By fostering these collaborative partnerships, the IAF aims to identify niche aerospace technologies and transform indigenous research into practical, strategic solutions for modern warfare.
