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MAJOR IAF BOOST WITH RAFALE, MTA AND AEW&C DEALS
SP’s Aviation
|Issue 4, 2026
The scale of acquisitions signals a shift from incremental upgrades to preparing for high-intensity, technology-led warfare. If executed well, they could rebuild IAF squadron strength, boost readiness, and strengthen deterrence.
INDIA’S DEFENCE MODERNISATION HAS OFTEN MOVED IN cautious, incremental steps. The latest disclosure to the parliamentary standing committee on defence, however, signals something markedly different: a decisive, high-stakes push to rebuild the Indian Air Force's (IAF) eroding combat and support capabilities.
The proposed conclusion of mega deals—114 Rafale fighters, up to 60 Medium Transport Aircraft (MTA), and advanced AEW&C systems—between 2026 and 2027 reflects both urgency and strategic clarity.
At the heart of this shift is money—serious money. A 37.03 per cent increase in the IAF’s capital budget over the 2025-26 estimates is strategic. The government appears willing to back long-pending modernisation plans with real financial muscle, a departure from years of constrained procurement cycles and delayed decisions.
The headline acquisition-the 114 Rafale jets under the MRFA programme—indicated urgency to resolve the IAF’s squadron strength. The Rafale has already proven its value in the IAF’s fleet, offering advanced avionics, multirole flexibility, and strong deterrence capability. The MRFA programme will cost around ₹3.25 lakh crore. The proposed aircraft under the MRFA will be manufactured in India through a partnership between French entity Dassault Aviation and an Indian defence firm.
This story is from the Issue 4, 2026 edition of SP’s Aviation.
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