While retirement of MIG variants will outpace induction of new aircraft, the Indian Air Force (IAF) expects to invest Rs. 20,000 crore (USD 4.3 billion) over the next 10 years to modernize its fleet with better detection and combat systems and more endurance. Further, officer strength will also fall because of retirement but IAF says that even a smaller but better fleet, augmented by new and refurbished 300 older ones, will serve the nation better than an ageing large one.

Part of the modernization plan is to induct 14 new Sukhoi-30 MKI fighters every year for the next 8 to 9 years, complete negotiation for 12 used Mirage fighters from Qatar with support from France, exploring the induction of additional Mirages from France, and an addition of 6 mid-air re-fuelling tankers to the existing 6 Mirage aircraft to double the flight endurance. The IAF has really pushed the life span of three MIG variants by over a decade and 125 MIG021 BiS aircraft are being upgraded to ensure that at least half the MIG fleet remains operational for a decade. Further, another 135 MIG-27s are being upgraded by the Hindustan Aeronautics Limited (HAL) by the end of 2009. Additionally, 140 Jaguars are getting retro-fitted to carry potent missiles and high-tech navigation systems. The 40 Mirage-2000s will also be upgraded.

Next year, IAF will also acquire an Airborne Warning and Control System (AWACS) capable of identifying, detecting, and managing activity for a radius of 300 kilometers. India will be the only country in the region to have acquired such capability.