The Indian Air Force’s (IAF) long-awaited Medium Role Fighter Aircraft (MRFA) tender, aimed at acquiring 114 advanced fighter jets, is encountering a new challenge. Local production costs are expected to surpass direct procurement prices by $20-30 million per aircraft. Manufacturing jets locally, a key aspect of the Make in India initiative, will result in significantly higher expenses compared to purchasing them directly from the original equipment manufacturers (OEMs). The MRFA tender includes four twin-engine contenders: the Boeing F/A-18E/F Super Hornet Block III, the Eurofighter Typhoon, the Russian MiG-35, and the Dassault Rafale. Additionally, two single-engine options—the Lockheed Martin F-16 Block V (marketed as the F-21) and Saab’s Gripen-E—have been proposed. While all six fighters offer advanced capabilities, the elevated costs of setting up local production lines, building specialized infrastructure, and training a domestic workforce will raise the final price per unit significantly above the cost of direct OEM purchases.
