India’s decision to procure six multirole aerial refuelling aircraft (MRTT) is anticipated to significantly improve the Indian Air Force’s (IAF) long-range operational capabilities, according to data and analytics firm GlobalData. 

The $1.1bn acquisition, to be handled by Israel Aerospace Industries in partnership with Hindustan Aeronautics Limited (HAL), will replace the ageing Il-78MKI fleet. 

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Current figures from GlobalData reveal that the Il-78MKI tankers, inducted in 2003, now average over 22 years in service and are no longer able to meet the endurance and interoperability needs of frontline aircraft, including the Rafale, Su-30MKI and Tejas platforms.  

As these platforms reach the end of their effective operational life, the introduction of new tankers is seen as essential for maintaining India’s airpower projection across strategic regions such as the Indo-Pacific. 

GlobalData Aerospace and Defence Analyst Harpreet Sidhu said: “The selection of a converted Boeing 767-based MRTT reflects a pragmatic and capability-driven approach by India. The Il-78 fleet, now over two decades old, has struggled to meet the endurance, availability, and interoperability demands of modern air operations. Replacing it with a modern alternative will improve mission readiness while reducing long-term sustainment risks. 

“While the aircraft itself is of foreign origin, the structured involvement of HAL is strategically important as it allows for integration of indigenous systems and seamless MRO during the operational lifespan of the aircraft fleet.” 

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GlobalData’s market data projects India will invest about $82.6bn in fixed-wing aircraft over the next decade.  

The company expects this acquisition to improve the nation’s air-to-air refuelling capability for undertaking long-range operations outside its borders.  

“Aerial refuelling aircraft are force multipliers rather than frontline platforms, but their impact on airpower projection is profound. By modernising this capability, India enhances the effective range, endurance, and deterrence as it allows other frontline aerial platforms to conduct missions over hostile airspaces that are further away from its terrestrial borders,” Sidhu added. 

According to a GlobalData report released last year, India’s defence expenditure is forecast to total $543.1bn between 2026 and 2030 as part of the country’s ongoing military modernisation.  

The report, titled India Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2025-30, indicates that acquisition spending will represent 31% of the projected total.