The Minister for Defence A.K. Antony has said in Parliament that the government’s procurement programme entailed a mix of outright purchase from original equipment manufacturers from overseas and subsequent manufacture in India with increasing levels of indigenisation. He said that Su-30 MKI aircraft and Tejas light combat aircraft (LCA) are the major modern combat planes that have been contracted for induction into the Indian Air Force (IAF). The total cost of procurement of the Su-30 MKI is over Rs. 55,717 crore while the cost of procurement of the Tejas is about Rs. 8,691 crore.

Capacity for design and manufacture of modern combat aircraft involves development of very high and sophisticated technology skills which is a gradual process. Technology denial regimes have thwarted this effort in the past. The Defence Procurement Procedure (DPP) provides for procurement of aircraft and their subsequent manufacture in India. Hence, major aircraft procurement programme entail a mix of outright purchase from abroad and subsequent manufacture in India with increasing levels of indigenisation. Hindustan Aeronautics Limited (HAL) is already manufacturing the Su-30 MKI aircraft as well as the Tejas for the IAF. Further, HAL would also eventually be manufacturing the medium multi-role combat aircraft (MMRCA) and the fifth generation fighter aircraft (FGFA).