Well if the news is true and IAF did express interest in the F-35A for the imported SEF program, this desire to have a look at the F-35A instead of F-16V or Gripen E is more than understandable. It is madness to not consider the F-35 if one is looking at an imported SEF.
Sure, LM would love to continue to suckle on the F-16 titty but would it risk loosing a potentially gargantuan order of 126 F-35A which could lead to another 57 for IN and more eventually when IN's IAC-2 and follow-ons are ready? Having India as a F-16 user adds little value to LM or US but if India were to be convinced of the F-35 and orders 126 for IAF with options for more in the future, this would drastically reduce the risk of the F-35 program, propel India to the second largest operator status, allow for local assembly as well as become contributors to the global supply chain and build confidence among other friendly nations and existing F-16 users like Singapore, Oman, Thailand, Indonesia etc. If India was to buy the F-35 it would certainly be in signifcant numbers, would be perhaps the only user outside the US to operate all 3 variants and would have a local version much like the Israelis (since we won't sign the CISMOA, we'd end up with F-35s with local IFFs, satcoms, datalinks, comms). The assembly line in India would partly assemble aircraft for other Asian and Middle Eastern customers and would certainly be the regional F-35 hub for MRO, supply chain etc. Such an order would also drive down the flyaway as well running cost for future operators. Keep in mind some day all F-16s in Asia and Middle East will need replacing and the F-35 would be a natural choice for them. Indian assembled F-35s could be operating in Egypt, Oman, Morroco, Iraq, Thailand, Indonesia, Taiwan, Philipines, Singapore etc.
Last we checked the 127 FGFA deal wasn't going too well hence also could be why IAF is looking at 126 F-35A. Flyaway cost of the F-35 has been dropping. There is nothing to suggest that strategic outlook of Indo-US relations hasn't already matured to a significant level. Today we have 12 P-8I with another 12-15 or more to be ordered in the near future, 10 C-17s, 12 C-130Js. 22 Apaches with potentially (39 more for IA's AAC) and 15 Chinooks set for delivery, 145 M777 howitzers with potentially hundreds more under MII. 22 Sea Guardian UAVS are available for sale for IN. 80-100 Avenger UCAVs are being considered for IAF, sale is not cleared yet. 100+ S-70 or MH-60 for Naval Medium helo contest, keep in mind the S-70 was the better chopper last time around including in trials.
Unless you have been living under a rock, India already takes parts in more joint training, excercises and martime exchanges with the US than with any other country. The number of exchanges continues to rise every year.
With the US it is atleast clear what we get and they mostly stick to the contract and after sales is good. While folks from Russia, France claim a lot of non sense about full tot etc but when it comes to implementation we face significant issues (check failed MMRCA process, Scorpene TOT issues and significant cost increases, MKI and T-90 TOT issues), the failure to get MTA project going, seems like the PAKFA/FGFA is heading the same way, the list goes on and on.
http://www.dsca.mil/major-arms-sales/belgium-f-35-joint-strike-fighter-aircraft
The Government of Belgium has requested to buy thirty-four (34) F-35 Joint Strike Fighter Conventional Take Off and Landing (CTOL) aircraft, and thirty-eight (38) Pratt & Whitney F-135 engines (34 installed, 4 spares). Also included are Electronic Warfare Systems; Command, Control, Communications, Computer and Intelligence/Communications, Navigational, and Identification (C4I/CNI); Autonomic Logistics Global Support System (ALGS); Autonomic Logistics Information System (ALIS); Full Mission Trainer; Weapons Employment Capability, and other Subsystems, Features, and Capabilities; F-35 unique infrared flares; Reprogramming center; F-35 Performance Based Logistics; software development/integration; aircraft ferry and tanker support; support equipment; tools and test equipment; communications equipment; spares and repair parts; personnel training and training equipment; publications and technical documents; U.S. Government and contractor engineering and logistics personnel services; and other related elements of logistics and program support. The estimated total case value is $6.53 billion or just over $190 mil per bird
The Belgian deal is valued at $6.53 billion including all of the above. An Indian deal would have lower costs due to bigger order numbers, some TOT and local assembly. I think we'd end up paying around $25-27Billion. Not bad especially if FGFA deal is cancelled, the FGFA was valued at the same cost.