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Friday, August 23, 2024

India Demands Full Domestic Manufacturing for MRFA Fighter Jet Program


In a move signalling a bold shift in its defense acquisition strategy, India's government has seeking a new policy mandating complete fighter jet production within the country for its upcoming Multi-Role Fighter Aircraft (MRFA) program. This decision signifies a significant departure from previous 'Make in India' initiatives that focused on partial domestic production.


Under this revised policy, any company bidding for the lucrative MRFA contract, estimated at $23 billion, must be willing to establish a manufacturing facility in India capable of producing the entire aircraft. Additionally, the government seeks comprehensive technology transfer and a joint venture with a local partner for full-scale production.


This move is seen as a clear step towards India's goal of achieving 'Atmanirbhar Bharat' (self-reliance) in defense. While the policy change may delay the much-needed acquisition of fighter jets for the Indian Air Force, it is aimed at bolstering the domestic aerospace industry and reducing reliance on foreign suppliers.


Several leading aircraft manufacturers, including Dassault, Boeing, SAAB, Lockheed Martin, and others, are reportedly vying for the MRFA contract. However, the new policy raises the stakes for these companies, forcing them to re-evaluate their bids and propose a comprehensive plan for complete aircraft production in India.


Industry analysts expect a new global tender incorporating these stringent requirements to be issued soon. However, the policy shift is also anticipated to further delay the MRFA acquisition process, given the complexity of setting up full-fledged manufacturing and technology transfer.


The Indian Air Force currently operates with 31 fighter jet squadrons, significantly below the sanctioned strength of 42. While the new policy aims to build long-term capabilities, it also underscores the immediate need for the Air Force to bridge the gap in its fighter fleet.


The success of this ambitious policy change will hinge on effective collaboration between the government, foreign vendors, and domestic partners. The challenges ahead are considerable, but if successful, the MRFA program could significantly boost India's domestic aerospace industry and propel it towards greater self-reliance in defense.

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