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IAF has set its mind on rafale after decade long evaluation.Su30 MKI is superior to rafale in many cases. The software and EW upgrades could always have been done in Su30 MKI too. These are not excuses to buy Rafale as an import. Tomorrow, in case of war, the plane that will be needed the most is the plane that will be made in India, not imports like Rafale.
Along with Tejas MK2 coming in 2025, the combo of Tejas MK2 and Su30 can work wonders and surpass the need for rafale altogether. Since the last rafale is being delivered only in 2023, there is not much time difference between the arrival of Tejas MK2 and Rafale. Rafale may have other things which were needed by India like meteor missile, other secretive deals etc. It is not the rafale that is important but the other components of the deal.
So new govt had few options other than this niche buy.
If uprated kaveri comes from offsets as alternative engine for tejas mk2 deal is. cost effecive.
But GOI can't break the bank by spending 30 billions on 120 plus Rafales, like MMRCA.
IT will fill niche role in IAF.