SOURCE: AFI
The Indian government’s consideration of an “open tender” process for the Indian Air Force’s (IAF) high-stakes 114 Multi-Role Fighter Aircraft (MRFA) deal is aimed at transparency but risks the protracted complications that plagued the Medium Multi-Role Combat Aircraft (MRCA) program a decade ago. The MRCA tender process stretched over several years before ultimately selecting the Rafale, a decision that underwent intense scrutiny and delayed the IAF’s modernization. Experts warn that an open tender for the MRFA deal might lead to a similarly prolonged selection process, which could weaken India’s aerial defense capabilities amid an increasingly challenging security environment.
The open tender process invites multiple vendors from various nations, increasing the potential for politicized bidding wars and diplomatic complexities. For a high-profile procurement like the MRFA, it would involve evaluating fighters from the U.S., Europe, and Russia—each with unique advantages and advocates in India. This could extend the timeline as the government navigates through international lobbying, lengthy negotiations, and endless scrutiny.
Further complicating this process is the need to evaluate not just aircraft performance but also technology transfer, local production capabilities, lifecycle costs, and geopolitical ramifications, all of which add layers of complexity and potential for delays.
The MRCA tender process was intended to provide the IAF with a reliable, cost-effective solution but ended up being a prolonged, politically charged event that left India’s fleet short of necessary upgrades. Despite evaluating some of the world’s best fighters, including the Rafale, Eurofighter Typhoon, and F-16, the process took nearly a decade and culminated in a small order for 36 Rafales, far short of the IAF’s original requirement.
To avoid a repeat of the MRCA experience, the following strategies could streamline the MRFA procurement process while safeguarding India’s defense needs:
Mandate Joint Maintenance and Upgrade Programs: Beyond the initial procurement, the MRFA deal should include provisions for joint maintenance and technology upgrades. By embedding upgrade clauses that keep the aircraft combat-ready for decades, the IAF can secure long-term viability and sustainability of its fleet without being reliant on costly retrofits later.
Downselect Based on Existing Requirements and IAF Experience: The IAF has already evaluated most of the MRFA contenders. Utilizing this experience to downselect a few proven candidates, rather than restarting a fresh open tender, can accelerate decision-making. Aircraft like the Rafale, F-21, and Gripen-E have already been vetted for Indian conditions, and focusing on these could save valuable time.
Implement a G2G Framework: For high-value strategic defense purchases, a government-to-government (G2G) framework offers an efficient pathway. G2G contracts streamline procurement by directly engaging with foreign governments, minimizing bureaucracy and risk of lobbying controversies. Under such a framework, critical defense deals can proceed without the complex interferences typical in open commercial tenders.
Focus on Proven Technology Transfer and Make-in-India Capabilities: Ensuring that the winning bidder offers technology transfer aligned with India’s Atmanirbhar Bharat (self-reliant India) initiative is crucial. Priority should be given to firms that can commit to true technology transfer, local manufacturing, and training infrastructure. A robust Make-in-India plan, akin to the one established for Rafale maintenance, can foster local job creation and skilled workforce development, reducing dependency on foreign parts over time.
Use a Fast-Track Acquisition Committee: Appointing a specialized acquisition committee with authority to fast-track decisions could ensure accountability and agility in the selection and procurement process. This committee should have streamlined decision-making powers to cut down on bureaucratic delays while ensuring transparency and adherence to standards.
Order in Smaller Tranches with Future Expansion Options: Rather than waiting to finalize an order for 114 aircraft at once, India could place an initial order for a smaller batch to meet immediate needs, with options for future expansion. This approach would allow for immediate capacity enhancements while additional aircraft can be acquired based on operational feedback, alleviating the need for a prolonged selection process.