Israel Aerospace Industries (IAI) has positioned itself as the sole contender for a significant Indian defence contract to supply six mid-air refueler aircraft.

This contract, valued at approximately ₹8,000 crore, is a critical component of India’s efforts to enhance its air refuelling capabilities, thereby extending the operational reach and endurance of the Indian Air Force’s combat and transport aircraft.

The deal necessitates meeting India’s stringent ‘Made in India’ requirement, which mandates a minimum 30% indigenous content in the delivered platforms. IAI has demonstrated preparedness and compliance with this requirement, differentiating itself from other competitors who were unable to fulfil these essential criteria.

This emphasis on indigenous content reflects India’s broader strategic push to boost domestic defence manufacturing and reduce reliance on foreign imports.

The mid-air refueller aircraft are intended to play a pivotal role in supporting India’s expanding air combat fleet, including advanced fighters and transport aircraft. The ability to refuel aircraft mid-flight significantly extends their operational range, enabling longer missions without the need for landing. 

This capability is increasingly vital given India’s evolving strategic environment and the necessity to project power across vast distances.

Other contenders in this tender process, which initially included several international aerospace companies, dropped out primarily due to their inability to meet India's indigenous content threshold. This outcome underscores the rigorous standards the Indian defence procurement system is now imposing, aiming to foster technology transfer and promote the growth of India’s aerospace industrial base.

IAI’s willingness to localise a significant portion of the production process aligns closely with India’s ‘Atmanirbhar Bharat’ vision.

Collaboration with local suppliers and transfer of critical technology will not only satisfy contract requirements but also contribute to skill development and capacity enhancement within the Indian defence sector.

Negotiations are expected to focus on finalising the details of the localisation plan and setting clear benchmarks for quality and delivery schedules. IAI’s prior experience in defence collaborations with India, including supplying other aircraft and missile systems, gives it a strategic advantage in understanding the complexities and expectations of Indian defence procurement.

The acquisition of these six mid-air refueler aircraft is poised to address a longstanding gap in the Indian Air Force’s logistics and operational support framework. These aircraft will enhance mission flexibility, allowing for sustained air operations over contentious theatres and critical areas extending from India’s border regions to the Indian Ocean.

Israel Aerospace Industries' preparation to meet and exceed India’s indigenous content requirements has positioned it as the frontrunner for the ₹8,000-crore mid-air refueler deal. This development underscores India's stringent defence procurement policies focused on self-reliance, technology transfer, and strengthening the domestic aerospace industry.

IDN (With Agency Inputs)