SOURCE: RAUNAK KUNDE / NEWS BEAT / IDRW.ORG
Recent reports suggesting a collaboration between India and Russia for local manufacturing of Su-30MKI/SM aircraft for export raise doubts about its viability. While this could potentially help Russia circumvent export sanctions due to their banking system, several factors make it a commercially unappealing proposition.
Analysts at idrw.org believe Indian-built Su-30MKIs will struggle to compete with their Russian counterparts due to a significant cost difference.
The volume of production in India is lower compared to Russia, affecting economies of scale and leading to higher unit costs. In 2019, then Minister of State for Defence Subhash Bhamre highlighted that the low production volume in India, combined with the dependency on Russian Original Equipment Manufacturers (OEMs) for raw materials and proprietary components, further exacerbates the cost issue.
Historically, India has faced challenges in aligning its production capabilities with competitive pricing. In the early 2000s, Su-30MKIs supplied directly by Irkut were significantly cheaper compared to those manufactured by Hindustan Aeronautics Limited (HAL) in India. Despite factoring in inflation, the cost difference remains substantial.
Moreover, during the peak production years of HAL’s Su-30MKI line, Russia continued to sell directly to its traditional customers rather than leveraging India’s production capabilities. This strategy limited India’s potential to establish itself as a competitive manufacturing hub for the Su-30MKI/SM variants.
Looking ahead, HAL has been authorized to procure 12 additional Su-30MKIs as required by the IAF. Post-procurement, the Nashik facility will focus on upgrading the existing Su-30MKI fleet with indigenous equipment and serving as a maintenance, repair, and overhaul (MRO) hub for the 260-strong fleet.
While the prospect of India manufacturing Su-30MKI/SM jets for the export market presents an opportunity to strengthen its defence manufacturing sector, significant challenges remain. The higher production costs, dependency on Russian components, and historical context of limited competitive pricing highlight the complexities involved.
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