SOURCE: AFI
India’s $295 million investment in Russia’s Fifth Generation Fighter Aircraft (FGFA) program, which was intended to co-develop a next-generation stealth fighter based on Russia’s Su-57, appears to be a sunk cost, with little chance of recovery. The FGFA project was envisioned as a strategic partnership to bolster India’s aerospace capabilities while sharing in the development of a stealth fighter that would meet Indian Air Force (IAF) specifications. However, due to a variety of issues, from diverging design requirements to technical disagreements, the program has stalled, leaving India with an investment that may not yield any returns.
The FGFA program was initially conceived as a collaborative project between India and Russia, aimed at producing a fifth-generation multirole stealth fighter. The collaboration was supposed to give India access to cutting-edge stealth technology, avionics, and other advanced features critical for modern air combat. In exchange, India invested around $300 million toward research and development, expecting the project to result in an aircraft tailored to the Indian Air Force’s needs.
Under the agreement, the FGFA, based on the Russian Sukhoi Su-57, was intended to serve as a leap forward in India’s defense capabilities. The Su-57 platform, Russia’s first fifth-generation stealth fighter, was set to incorporate advanced stealth, supercruise, high maneuverability, and state-of-the-art sensors and avionics, promising a major upgrade over the existing fleet of fourth-generation aircraft in the Indian Air Force.
Despite the initial promise, the FGFA program encountered obstacles from the outset. India and Russia disagreed on several aspects of the aircraft’s design, capabilities, and cost distribution, leading to delays and a growing sense of frustration in the Indian defense establishment. Among the key issues were:
Cost Overruns and Escalating Budget Requirements: The estimated costs for development ballooned over time, and Russia’s revised budget expectations far exceeded what India was prepared to invest. As costs mounted, India grew increasingly wary of putting more money into a program without assurances of meeting its operational requirements.
Stealth and Sensor Limitations: The Indian Air Force expressed concerns that the Su-57’s stealth capabilities were insufficient for modern combat requirements. Russia’s design did not fully meet India’s expectations for radar cross-section (RCS) reduction, which is a critical element of a true fifth-generation fighter.
Performance of Avionics and Radar: India found the Su-57’s avionics and radar systems to be lacking compared to Western fifth-generation aircraft like the F-35. India had expected to contribute enhancements in these areas but faced resistance on integrating advanced indigenous systems.
Technology Transfer Constraints: India’s expectation of substantial technology transfer from Russia did not materialize as anticipated. The Indian side sought full access to stealth, avionics, and sensor technologies, but Russia was reluctant to share critical design elements and production processes, fearing compromise of its own intellectual property.
After years of stalled progress, India decided to withdraw from the FGFA program in 2018. The decision was influenced by the IAF’s assessment that the project, in its current form, would not produce a fighter with the necessary stealth and combat capabilities. India subsequently refocused its efforts on developing indigenous fighter projects, such as the Advanced Medium Combat Aircraft (AMCA), a next-generation fighter program led by the Defence Research and Development Organisation (DRDO).
However, India’s withdrawal from the FGFA left the $300 million investment in limbo. Without any share in the final development or production rights, India is unlikely to recoup this expenditure. The funds spent on research, co-development, and initial design modifications were essentially absorbed into Russia’s own Su-57 program, with little direct benefit to India’s aerospace industry.
India’s ability to recover any portion of the $300 million investment remains uncertain, given that the funds were tied to research and development processes rather than tangible assets or production rights. As a result, India has few legal avenues to pursue repayment, particularly as the project terms did not explicitly guarantee returns in the event of withdrawal.
As India charts its path forward, the AMCA program has become the cornerstone of its efforts to develop a capable, fifth-generation stealth fighter. Leveraging lessons from the FGFA experience, the DRDO and other Indian defense agencies are prioritizing indigenous design, production, and technology advancements, aiming to field a fighter that meets IAF specifications without the challenges of foreign dependence.