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No. It is not make in India. Neither is it that 100+mil cost is an issue. FGFA will also be that expensive.The F-35 has been on offer to us since 2011,back when we had no LSA and has been repeatedly been offered to us by Pentagon since then
http://thediplomat.com/2011/11/india-and-the-f-35/
The biggest bone of contention among CISMOA, LeMOA/LSA, BECA was the LeMOA which has been signed and the Americans have said India will get access to 99% U. S technology for purchase purposes (not to be confused with ToT), on par with their treaty allies so that's not the issue
The issue is we won't get make in India for the F-35 because it is already a globally manufactured plane, at best we'll get to manufacture some components for it, which won't sit well for the MoD who seems to be of the view that Make in India is more important than quality
And, the money, which the MoD seems to be very stingy with, if they find 85mil/unit Rafales too expensive there won't be any 100+mil units F35s
MoD is simply not considering it, it is definitely on offer to India
The main issue is that buying an F-35 means a world of change in the IAF's doctrine.
You see IAF emphasizes individual aircraft survivability. Hence, it requires maneuverable aircraft. (Does not mean the they don't work in teams)
F-35 (very aptly called the JSF) is meant for operating as a team and a team only. Its easy to shoot down a single F-35, but a flight of F-35s will pose an immense challenge simply because they are networked to an unprecedented extent. It works on a new doctrine that centers around information sharing and net-centrality on a whole new level. The critical enabler of this doctrine is the data link hardware in the F-35s, that has enormous bandwidth and resilience.
This data link is on a level where we cannot replicate it with an indigenous data link if we do buy these aircraft. Obviously we cannot use the American data links as they are not compatible with the ones we operate today. As a result, we cannot use the F-35 the way its meant to be used. If we try to use it our way, it will be a disaster (How? Read any one of the articles ripping apart the F-35 for lack of maneuverability and a small payload and range).
Don't get me wrong. I am not saying that IAF is not networked. But it is not networked to the extent to which USAF or RAF is networked.
We are also facing the same problem with the P-8I Poseidon aircraft of the Navy.
Even if we were so networked, IAF would be wary of these aircraft as it is based on an entirely new and untested doctrine. USAF has a fail-safe (numbers). We do not.