India’s Ministry of Defence (India) has outlined a roadmap to conclude three major air power acquisition programs worth over ₹4.5 lakh crore by FY 2026–27, the ministry informed the Parliamentary Committee. These include the 114-fighter MRFA (Rafale) program deal, a 60-aircraft Medium Transport Aircraft (MTA) project, and additional airborne surveillance platforms under the Netra AEW&C program for the Indian Air Force.
Together, these acquisitions are expected to strengthen India’s air combat capability, expand strategic airlift capacity, and improve airborne surveillance across the Indo-Pacific region.
Key Highlights
• Total modernization value: ₹4.5 lakh crore+
• Fighter acquisition: 114 aircraft under the MRFA program
• Transport fleet expansion: 60 Medium Transport Aircraft
• Airborne surveillance: Additional Netra AEW&C systems
• Timeline: Key decisions expected during FY 2026–27
• Objective: Restore IAF fighter strength toward the sanctioned 42 squadrons
IAF Modernization Projects at a Glance
| Project | Estimated Cost | Main Objective | Key Contenders / Partners |
|---|---|---|---|
| MRFA (114 Fighters) | ₹3.25 Lakh Cr | Replace aging MiG fleets | Dassault Aviation + Indian partner |
| MTA (60 Aircraft) | ₹1 Lakh Cr | Replace An-32 transport fleet | C-390, C-130J, A-400M |
| Netra AEW&C | ₹20,000+ Cr | 360° airborne surveillance | Defence Research and Development Organisation |
The ₹3.25 Lakh Crore 114 Rafale (MRFA) Deal: What’s New?
The centerpiece of the Indian Air Force’s modernization plan is the proposed 114-aircraft MRFA fighter procurement program, expected to become one of the largest fighter deals in aviation history.
The aircraft will replace several aging fighter types, including the MiG-21 and older MiG-29 variants, while helping the IAF rebuild its fighter strength closer to the sanctioned 42 combat squadrons.
The leading contender is the Dassault Rafale, already in service with the Indian Air Force. Negotiations are also focusing on technology transfer and access to key systems, including discussions surrounding AESA radar source-code access, which would allow deeper integration of Indian weapons and avionics.
The deal is expected to include large-scale local production under India’s Atmanirbhar Bharat defense manufacturing initiative.
Replacing the An-32: Why the 60 Medium Transport Aircraft Deal Is a Priority
The Indian Air Force is also pursuing a 60-aircraft Medium Transport Aircraft (MTA) acquisition to replace its aging fleet of Soviet-era An-32 transports.
Several global aircraft manufacturers are competing for the contract, including:
- Embraer C‑390 Millennium
- Lockheed Martin C‑130J Super Hercules
- Airbus A400M Atlas
One major factor shaping the competition is payload capacity. The C-390 offers a 26-ton payload, compared with approximately 20 tons for the C-130J, making it attractive for heavy tactical transport missions.
The project is expected to significantly improve India’s ability to deploy troops, equipment, and humanitarian relief across the region.
Boosting Surveillance: Netra Mk-1A and Mk-2 AEW&C Timelines
In addition to fighters and transport aircraft, India is expanding its airborne surveillance network through additional Netra AEW&C platforms.
The program is being led by the Defence Research and Development Organisation and will include:
- Netra Mk-1A, mounted on the Embraer ERJ‑145
- Netra Mk-2, which will use modified Airbus A321 aircraft acquired from Air India
These aircraft will provide 360-degree radar coverage, enabling the Indian Air Force to detect hostile aircraft, track missiles, and coordinate air defense operations across large distances.
Strategic Context: Preparing for the Two-Front Challenge
The modernization roadmap also reflects India’s evolving security environment, particularly the possibility of a two-front conflict scenario involving China and Pakistan.
The expansion of the People's Liberation Army Air Force and modernization efforts within the Pakistan Air Force have increased pressure on India to strengthen its fighter fleet and airborne surveillance systems.
According to recent parliamentary reports reviewed by the Directorate of Aerospace Design, the MRFA program will be critical in helping the IAF rebuild its squadron strength and maintain air superiority across both western and northern fronts.
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