India is likely to conclude several big contracts in the financial year 2026-27 to sharpen the air force's combat edge, including contracts for buying 114 Rafale fighter jets, up to 60 medium transport aircraft (MTA) and additional airborne early warning and control (AEW&C) systems.
The defence ministry told a parliamentary panel that there is an increase of 37.03% in the Indian Air Force's capital budget as compared to budget estimates for 2025-26.
The allotted funds are planned to be utilised against some of the major new schemes like MRFA, combat enablers (AEW&C, LCA Mk-1A), MTA, and medium-altitude long-endurance RPA, in addition to the ongoing committed liabilities.
The Defence Acquisition Council (DAC) cleared the purchase of military hardware worth ₹3.6 lakh crore, including 114 Rafale jets under the MRFA programme.
The Rafale capability boost is expected to cost around ₹3.25 lakh crore.
The next steps before an actual deal include tendering, technical discussions, cost negotiations, and final approval from the Cabinet Committee on Security.
The MTA programme seeks to equip the IAF with 60 new transport aircraft to boost its airlift capabilities.
The air force is expected to soon seek the DAC's approval for the proposed acquisition, after which a tender will be issued.
