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The JF-17 Blk-lll and Project Azm should actually be not taken lightly only because of the tactics used by Pakistan and India and showed by both in the air skirmishes of Feb 26/27.
The IAF seems to have divided fighter fleet into 3 tiers based on their capabilities and engages the enemy with these tiered formations based on perceived threat level. Why do you think was MiG-21 a first respondent to the infiltrating PAF F-16s and JF-17s ?
The Tier 1 of IAF comprises of MiG-27 and MiG-21s for strike and interception roles respectively.(MiG-27s phased out now) The Tier 2 comprises of MiG-29 and Mirage 2000 for interception and strike roles respectively and in similar senses the Tier 3 comprises of Jaguar and Su-30MKI. The Jaguar being trusted upon with Nuclear weapons it is plausible that it will be guarded by MKI while on it's way.
But Pakistan despite also being an operator of vintage F-7s and Mirages is seen using F-16s and JF-17s more often and enabling them as a first response both in offense and defence. During Kargil War the initial Indian Air Force actions were performed by the Tier 1 force of MiG-21 and MiG-27 which ultimately led to some these getting shot down and pilots going missing, it was only after the Tier 2 being enabled the PAF didn't dare cross the path of Mirage 2000s covered by MiG-29s while on thier way.
In Future when PAF which is probably the only air force in the world which uses planes manufactured by a company owned by itself, would lable project Azm based stealthy looking platform as a fifth generation one despite being an incompletely matured platform just like JF-17 was pressed despite not having attained maturity.
Then this Fifth Generation Project Azm fighter being network enabled with Chinese AWACS could be seen pressed into offensive and defensive roles by PAF. If IAF still would enable its future Tier 1 force which God knows what will comprise of, IAF would definitely get it's old vintage aircrafts being shot down the Pakistani 5th generation Azm based fighter. The Chinese advanced missile system and an ability to be guided by an AWACS based radar instead on the onboard radar of the fighter can definately over power a 4th generation upgraded fighter. The Blk-lll JF-17 would be featuring technologies like AESA radar, advanced data link capabilities and HMDS and this being pressed into an offensive role could easily overpower a Tier 1 IAF Defending Force.
On February 27 the MiG-21s being the first respondent shows the loophole in our tacics. The worst of the IAF being available to defend against best of PAF. Despite such huge odds, Wing Commander Abhinandan Varthaman managing to chase them down and shoot down an F-16 makes him a true hero. A Hero who has been improperly armed and faced a big disparity. It is true that JF-17 Blk-lll won't be comparable to Dassault Rafale but doesn't have to face a Rafale is also a point of discussion.
The Future Indian Tier 1 would comprises of Tejas variants. Tier two would be of Rafale and AMCA, Tier 3 of Su-30 MKIs converted into strike roles and Fifth Generation Fighters (Probably Su-57).