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623: AN AGING GIANT: THE DEMOGRAPHIC CHALLENGE FACING CHINA

 

China’s meteoric rise from an agrarian economy to a global superpower is one of the most significant transformations in modern history. However, beneath the surface of its economic achievements lies a demographic time bomb. The world’s most populous country is now grappling with an ageing population, declining birth rates, and a shrinking workforce, threatening its economic growth and social stability. China’s demographic challenge has multifaceted dimensions.

 

Historical Context of China’s Demographic Policies. China’s historical population control measures largely shaped the current demographic trajectory. In 1979, the Chinese government introduced the one-child policy to curb population growth and alleviate resource pressure. The policy resulted in negative population growth. As recently as 2019, the consensus was that China would reach a peak population of 1.45 billion in 2031. However, to everyone’s surprise, the population peaked in 2021, an entire decade earlier, at around 1.4 billion.  While this policy successfully reduced birth rates, it also led to significant unintended consequences, including gender imbalances, accelerated ageing, and a shrinking labour force. The relaxation of the one-child policy in 2015 and its eventual replacement with a three-child policy in 2021 have so far failed to reverse these trends.

 

The Aging Population: A Looming Crisis. China’s population is ageing at an unprecedented rate. The ageing population presents numerous challenges, including a higher dependency ratio, increased healthcare and social services demand, and a shrinking tax base. In 2022, the proportion of people aged 60 and above reached 19.8% of the total population, and this figure is projected to rise to over 30% by 2050. Several factors contribute to this phenomenon:-

    • The One-Child Policy Legacy. Introduced in 1979, the one-child policy aimed to curb rapid population growth. While it succeeded in lowering birth rates, it also disrupted population dynamics. A preference for male children led to a significant gender imbalance, with millions of men unable to find partners. The policy’s long-term effects include a generation of only children burdened with supporting ageing parents and grandparents.
    • Declining Fertility Rates. Despite the relaxation of the one-child policy in 2015 and the introduction of a three-child policy in 2021, birth rates continue to fall. In 2022, the fertility rate in China dropped to 1.2, lower than that of the US and Japan and far below the replacement level of 2.1.
    • Increased Life Expectancy. Advances in healthcare and living standards have significantly extended life expectancy, which now exceeds 78 years.
    • Urbanisation. Urbanisation has altered traditional family structures and reduced the economic incentives for having multiple children. Urbanisation and changing societal norms prioritise careers and personal freedom over family expansion. Economic pressures, such as the high cost of living, housing, and education, discourage couples from having more children.

 

Implications.

China’s economic miracle was primarily driven by its “demographic dividend,” characterised by a young and abundant workforce that propelled the country’s rapid industrialisation and economic expansion. However, as China’s workforce shrinks, it faces significant economic headwinds, which will have profound financial, social, and cultural implications. The following factors highlight the consequences of China’s demographic decline and how they will shape its future.

 

Labour Shortages. Labour shortages are one of the most immediate consequences of China’s demographic shift. The country currently has a working-age population of about one billion people, but this figure will decline by approximately 100 million per decade. By 2030, China’s working-age population will decrease by over 60 million, leading to severe labour shortages in key industries, particularly manufacturing and technology. A shrinking workforce reduces overall economic productivity and innovation potential, making it increasingly difficult for China to maintain its competitive edge in global markets. As wages rise due to the declining supply of workers, businesses will seek alternative locations for production, favouring countries with younger populations such as India, Vietnam, and Indonesia. This shift may slow China’s economic growth and reduce its influence in global supply chains.

 

Dependency Rate. The increasing dependency ratio presents another significant challenge for China. The ratio of those aged 60 and above to those aged 15-59 will rise dramatically from 30 per cent to 50 per cent in the coming decade. In 2001, this ratio stood at just 15 per cent, highlighting the rapid pace of China’s demographic transformation. A higher dependency ratio means fewer working-age individuals can support the growing elderly population, increasing financial burdens on households and the state. The demographic shift will result in fewer taxpayers and contributors to social security systems, exacerbating economic pressures.

 

Rising Pension Costs. One of the most concerning financial implications of China’s ageing population is the rising cost of pensions. The country’s pension system is already underfunded, and the growing number of retirees will strain resources even further. Without substantial reforms, China could face a pension crisis, forcing the government to cut benefits, raise the retirement age, or significantly increase taxes to maintain the system’s solvency. These changes could spark social unrest, as older citizens, accustomed to state-provided benefits, may protest against reductions in financial support.

 

Reduced Savings and Investment. Additionally, an ageing population tends to save less, which could reduce the amount of capital available for investment. Historically, China’s high savings rate fuelled domestic investment and economic expansion. However, as elderly individuals rely more on their savings for daily expenses, the overall savings rate will decline, potentially leading to lower investment in infrastructure, research, and technological innovation. This shift could slow the country’s long-term economic growth and weaken its ability to compete with younger, more dynamic economies.

 

Care for the Elderly. The demographic crisis also has significant social implications, particularly regarding elder care. Traditionally, Chinese families have taken responsibility for caring for ageing relatives, but this model is becoming increasingly unsustainable. With the one-child policy leaving many families with only a single child to support two parents and potentially four grandparents, the burden of elder care is immense. This “4-2-1 problem” places enormous financial and emotional stress on younger generations, simultaneously forcing them to balance careers, childcare, and elder care. As a result, many young Chinese face declining quality of life and increased economic pressure, which may discourage them from having more prominent families, exacerbating the demographic crisis.

 

Gender Imbalance. Another major challenge is China’s gender imbalance, a lingering consequence of the one-child policy and a traditional preference for male offspring. As of 2020, there were approximately 34 million more men than women in China. This gender disparity has led to lower marriage and birth rates as many men struggle to find partners. Economic pressures and the high cost of raising children and housing have discouraged young couples from starting families. The decline in birth rates accelerates population ageing and further reduces the working-age population, creating a vicious cycle that deepens China’s demographic challenges.

 

Youth Pressure. China’s youth face mounting pressure as they are increasingly burdened with supporting their children and ageing parents. The “4-2-1 problem” intensifies this strain, as single children are responsible for caring for two parents and four grandparents, all while raising their children. The economic and psychological toll on younger generations could lead to declining mental health, reduced productivity, and lower overall life satisfaction.

 

Geopolitical Ramifications

China’s demographic decline has far-reaching geopolitical implications. As its workforce shrinks and economic growth slows, China may struggle to sustain its ambitious global projects, such as the Belt and Road Initiative (BRI). A weaker economy could limit the country’s ability to provide infrastructure investments and financial aid to developing nations, reducing its influence in regions such as Africa, Latin America, and Southeast Asia. This could create an opening for competing powers like the United States to expand their economic and diplomatic reach.

If economic pressures continue, China may adopt a more aggressive foreign policy to rally nationalist sentiment and distract from internal issues. This could increase tensions in the Taiwan Strait, the South China Sea, and its border with India.

The demographic crisis could also weaken China’s manufacturing dominance, leading to shifts in global supply chains. Countries with younger populations, such as India, Vietnam, and Indonesia, may attract investment and manufacturing jobs that previously went to China. As China’s labour force shrinks and wages rise, multinational corporations may seek alternative production hubs, further diminishing China’s economic leverage.

Additionally, with a declining young population, China may struggle to sustain its technological and scientific advancements. A robust and skilled workforce fuelled the country’s economic rise, but a shrinking talent pool could impact innovation in critical sectors such as artificial intelligence, semiconductors, and biotechnology. If China cannot maintain its technological edge, it may find itself increasingly reliant on foreign technology, undermining its goal of self-sufficiency and global leadership in high-tech industries.

 

Military Repercussions

China’s demographic decline will seriously affect its military capabilities and long-term strategic ambitions. A shrinking workforce will reduce the pool of young, physically capable recruits available for military service, potentially limiting the expansion of China’s armed forces. As fewer young people enter the workforce, the government may face challenges maintaining a large standing army while supporting an ageing population. This could lead to shifts in military doctrine, with greater reliance on technology, automation, and artificial intelligence to compensate for the declining manpower.

Moreover, an ageing population could strain the government’s ability to allocate resources toward military modernisation. As pension costs and healthcare expenditures rise, Beijing may be forced to prioritise social welfare over defence spending. This could slow the pace of military advancements, particularly in areas such as naval expansion, missile development, and aerospace technology. An older population may be less willing to support prolonged military conflicts, leading to shifts in China’s strategic calculus regarding territorial disputes and power projection.

A reduced recruitment base may also impact military innovation and operational effectiveness. Historically, military forces benefit from a young, technologically proficient population capable of adapting to new combat technologies and warfare tactics. A declining youth demographic may result in fewer high-skilled personnel entering the military, potentially limiting China’s ability to develop and deploy cutting-edge defence systems.

 

Conclusion.

China’s demographic challenge is one of the most pressing issues it faces in the 21st century. Its shrinking workforce and ageing population present significant economic, social, cultural, and geopolitical challenges. Labour shortages, a rising dependency ratio, escalating pension costs, and reduced savings will strain the economy. At the same time, the gender imbalance and elder care crisis will place immense pressure on families and young people. Geopolitically, China’s ability to project power and influence globally may weaken as economic constraints force the government to prioritise domestic concerns. China risks long-term economic stagnation, social instability, and declining geopolitical influence without adequate policy interventions, such as increased automation, higher retirement ages, improved social security systems, and incentives for larger families. The coming decades will test China’s economic model’s resilience and ability to adapt to one of the most profound demographic shifts in modern history.

 

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References and credits

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Disclaimer:

Information and data included in the blog are for educational & non-commercial purposes only and have been carefully adapted, excerpted, or edited from reliable and accurate sources. All copyrighted material belongs to respective owners and is provided only for wider dissemination.

 

References:-

  1. Liu, Yunguo, and Cai, Fang. “China’s Demographic Transition: The End of the One-Child Policy and Future Prospects.” China Economic Review, vol. 49, 2018, pp. 1-13.
  1. Wang, Feng. “The Impact of the Demographic Transition on China’s Economy.” Asian Economic Policy Review, vol. 14, no. 1, 2019, pp. 30-49.
  1. Chen, Wen. “China’s Aging Population: The Economic and Social Impacts.” China Quarterly, vol. 229, 2017, pp. 1075-1095.
  1. Lee, Ronald, and Mason, Andrew. “Population Aging and the Economic Future of China.” Journal of the Economics of Ageing, vol. 2, 2013, pp. 57-65.
  1. United Nations. World Population Prospects: The 2019 Revision. United Nations, Department of Economic and Social Affairs, Population Division.
  1. National Bureau of Statistics of China. China Statistical Yearbook 2023.

7, OECD. China’s Population Ageing: Challenges and Opportunities. OECD, 2021. 

  1. China Development Research Foundation. The Aging Society in China: Trends and Policy Challenges. 2018.
  1. Huang, Yasheng. “The Demographic Challenges of China’s Economic Transformation.” Asia & the Pacific Policy Studies, vol. 6, no. 2, 2019, pp. 222-240.
  1. Duan, Yufei, and Zheng, Yu. “China’s Aging Population and Healthcare: Implications for the Future.” The Lancet Global Health, vol. 7, no. 10, 2022, pp. e1372-e1380.
  1. Cai, Fang. The China Population and Labour Yearbook, Volume 1: Population and Labour. 2011.
  1. Feng, Wang. China’s Demographic Transition and the Family: The Impact of the One-Child Policy. 2021.
  1. Vogel, Ezra F. China’s Hidden Children: Abortion, Adoption, and the One-Child Policy. 2013.
  1. Zhang, Xiaobo, and Li, Hongbin. China’s Economic Growth and Demographic Transition. 2019.
  1. World Bank. “China’s Demographic Transition and Its Economic Implications.” World Bank Group Report, 2020.
  1. McKinsey & Company. “China’s Looming Demographic Crisis.” McKinsey & Company Insights, 2020.
  1. The Economist. “China’s Aging Crisis: How to Manage the Demographic Transition.” The Economist, 2022.
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618: INPUTS TO QUESTIONNAIRE ON CHINESE DAMS

 

1a: What’s the historical legacy of the trans-border Rivers between India and China?

    • The trans-border rivers between India and China, most notably the Brahmaputra (Yarlung Tsangpo in Tibet), the Indus, and the Sutlej, have long played a crucial role in shaping the historical and contemporary relationship between the two countries.
    • Their legacy is deeply intertwined with colonial-era geopolitics, water resource competition, and the evolving strategic tensions between India and China.
    • The Brahmaputra, Indus, and Sutlej rivers originate in Tibet, historically having fluid sovereignty claims before its integration into China in 1950.
    • British India recognised Tibet as an autonomous region, but the Chinese annexation of Tibet significantly altered the strategic importance of these rivers.
    • The British Raj was concerned about Chinese influence over the water sources and actively sought treaties and diplomatic manoeuvres (e.g., the 1914 Simla Accord, which China never fully recognised) to define border arrangements.
    • Despite British concerns, pre-1947 did not see active contestation over river resources since China lacked the technological and economic capability to alter water flows significantly.
    • After India’s independence and China’s annexation of Tibet (1950), both countries engaged in limited cooperation on water sharing.
    • However, the deterioration of relations in the 1950s, culminating in the 1962 Sino-Indian War, disrupted diplomatic communication on river management.
    • Unlike India and Pakistan (who signed the Indus Waters Treaty in 1960), China never agreed to a formal water-sharing agreement with India.

 

  •  1b: How does this legacy play in contemporary relations?
    • The legacy of these rivers plays a significant role in modern geo-strategic, economic, and environmental disputes between India and China.
    • China controls the headwaters of major rivers flowing into India but has no legally binding treaty on water sharing with India.
    • This gives China an asymmetrical advantage over India, raising fears of diversifying and strategically manipulating river flows.
    • China has constructed multiple dams on the Yarlung Tsangpo (Brahmaputra), including the Zangmu Dam, and plans a mega-dam at the Great Bend near Arunachal Pradesh.
    • India fears that Chinese upstream dams could reduce water flow, especially during dry seasons, affecting agriculture, livelihoods, and ecosystems in Assam and Arunachal Pradesh.
    • China officially states that these projects are run-of-the-river and do not significantly alter flows, but India remains wary.
    • In the event of a military conflict, India fears that China could weaponise water by artificially creating floods or droughts.
    • China has, at times, withheld hydrological data from India during monsoon seasons (e.g., in 2017 during the Doklam standoff), exacerbating flood risks in the northeastern states.
    • Existing mechanisms, such as the annual hydrological data-sharing agreement, are limited in scope and do not address more significant concerns over dam-building and strategic manipulation of river flows.
    • The historical legacy of colonial geopolitics and the asymmetry of water control continue to shape contemporary Sino-Indian relations, making trans-border rivers a critical flashpoint in their evolving rivalry.

 

2: How do dams today define and complicate the disputed border management between India and China?

      • Dams have become critical in the complex and disputed border management between India and China, influencing water security and strategic, military, and geopolitical dynamics.
      • These dam projects, primarily on trans-border rivers such as the Brahmaputra (Yarlung Tsangpo) and the Sutlej, intersect with the broader territorial disputes along the Line of Actual Control (LAC), exacerbating tensions.
      • Dams along the Sino-Indian border are not just hydropower and irrigation projects; they serve as strategic assets with potential military and geopolitical consequences.
      • China controls the headwaters of major rivers flowing into India, including the Brahmaputra and the Sutlej. This upstream control allows Beijing to dictate the volume and timing of water flow.
      • China’s ability to divert, manipulate, or withhold water during crises or conflicts gives it a non-conventional weapon against India.
      • During the 2017 Doklam standoff, China withheld hydrological data on the Brahmaputra, flooding Assam and reinforcing Indian fears of water weaponisation.
      • Any large-scale water diversion could create flashpoints for diplomatic and military escalation.
      • Dams near the disputed borders have also created security risks and military vulnerabilities. If targeted in a military conflict, these could lead to environmental and humanitarian disasters.
      • Dams are no longer economic or energy infrastructure; they are now geo-strategic tools shaping the border dispute.

 

3: Are there any particular dams by China that threaten India?

      • Several Chinese dam projects on trans-border rivers, particularly the Brahmaputra (Yarlung Tsangpo) and Sutlej rivers, pose potential threats to India.
      • The Great Bend Mega-Dam, a massive hydropower project, is planned at the Great Bend of the Yarlung Tsangpo, near where the river turns into the Brahmaputra and enters India. This project could be one of the largest hydropower plants in the world, with a capacity of 60 GW, nearly three times the size of the Three Gorges Dam. India fears the dam could reduce water flow into Arunachal Pradesh, impacting agriculture and drinking water supply. China could suddenly release excess water, leading to catastrophic floods in Assam and Arunachal Pradesh. The project is close to the disputed Arunachal Pradesh border, reinforcing China’s territorial claims over the region. India has raised strong diplomatic objections, but China has refused to provide assurances that it will not alter natural water flows.
      • China’s Zangmu Dam (510 MW), commissioned in 2015, is the first large-scale hydropower project on the Yarlung Tsangpo. It is part of a cascade of six dams, including Jiexu, Jiacha, and Dagu, which China is building upstream of Arunachal Pradesh. While officially a run-of-the-river dam, multiple reservoirs upstream could be used to control water release. China could store water in the dam during monsoons and release it suddenly, causing flash floods downstream in India.
      • Dagu, Jiexu, and Jiacha Dams. These three dams, built in succession along the Brahmaputra’s upper reaches, further increase China’s capacity to regulate and potentially divert the river’s flow before reaching India. The combined effect of multiple dams allows Beijing to control water release precisely, creating a hydrological choke point for India. These projects could permanently reduce water flow into India, especially in dry seasons.
      • Lalho Dam, completed in 2019, is built on a major tributary of the Yarlung Tsangpo, holding back over 295 million cubic meters of water. While it is not on the main course of the Brahmaputra, its operation reduces tributary inflow into the river. Less water reaching the Brahmaputra in Tibet means lower flow into Arunachal Pradesh and Assam. This dam is part of China’s broader plan to harness Tibetan water resources, raising fears of future large-scale diversions.
      • Proposed North-to-South Water Diversion Project (Long-Term Threat). China has long debated a massive water diversion project to transfer water from Tibet to its arid northern regions. If implemented, this project could significantly alter the flow of the Brahmaputra before it even reaches India.
      • China is also building smaller-scale hydropower projects on the Sutlej River (which flows from Tibet into Himachal Pradesh). These dams have not been widely publicised, but they could potentially affect seasonal water flow into India’s northern regions.

4 Are any specific Indian states more threatened by the Chinese dams on the border?

      • Several Indian states are particularly vulnerable to the impact of Chinese dams on trans-border rivers, with Arunachal Pradesh and Assam facing the highest risks.
      • Arunachal Pradesh is most directly threatened. It shares a long border with Tibet, and the Brahmaputra (Yarlung Tsangpo) enters India here. China’s Great Bend Mega-Dam and Zangmu Dam could alter or reduce water flow into Arunachal Pradesh. Sudden water releases from Chinese dams could flood Indian villages, disrupt agriculture, and damage infrastructure.
      • Assam faces severe economic and ecological Threats. The Brahmaputra enters Assam from Arunachal Pradesh and is vital to the state’s agriculture, fishing industry, and transportation. Assam has a history of devastating floods, and any Chinese dam activity upstream could worsen the situation. Assam faces catastrophic flooding if China releases excess water (as suspected in the 2000 and 2017 floods). If China holds back water, it could impact agriculture, drinking water, and hydropower production. The Brahmaputra, including the Majuli River Island and Kaziranga National Park, supports a rich ecosystem. Flow changes could harm biodiversity and fisheries. Reduced or erratic water flow threatens rice farming and fishing-dependent communities. Infrastructure Damage: Increased flood risks make roads, bridges, and urban areas more vulnerable.
      • Sikkim faces moderate risk, as it depends on tributaries of the Brahmaputra, including the Teesta River, which could be affected by China’s upstream water management. Though not directly on the Brahmaputra, Chinese water diversion projects could impact Sikkim’s river networks. If China diverts water from Tibetan rivers feeding into Sikkim, it could impact the Teesta and Rangit rivers. Many of Sikkim’s rivers are fed by Himalayan glaciers, which are melting due to climate change. Chinese dams could exacerbate water shortages in dry seasons.  Sikkim has multiple hydropower projects on the Teesta, which could suffer from erratic water flow.
      • Himachal Pradesh faces a more minor, indirect risk because the Sutlej River, which originates in Tibet, flows into it. Chinese dam-building on the upper Sutlej could reduce water flow into the state. India has reported fluctuations in the Sutlej’s water levels, which could be linked to upstream Chinese activity. Reduced Sutlej flow could affect irrigation and hydropower projects. Farmers and hydropower plants depend on steady river flow, which could be disrupted. Unlike Assam or Arunachal Pradesh, Himachal Pradesh faces a long-term risk rather than an immediate crisis.
      • Ladakh faces a lesser-known, potentially serious threat, as the Indus River, which originates in Tibet, flows into Ladakh. Chinese upstream projects could impact the Indus water flow, affecting Ladakh’s water availability. China has previously explored diverting Tibetan rivers to supply its drier northern provinces. Ladakh is an arid region, and any reduction in Indus water could harm local farming.
      • Arunachal Pradesh and Assam are the most threatened, with risks of floods, water shortages, and geopolitical disputes.
      • Sikkim and Himachal Pradesh face indirect threats, mainly related to water flow disruptions.
      • Ladakh could become a flashpoint, especially if China diverts the Indus tributaries.

5: Is ‘Dam for a dam’ the only way out between India and China?

      • A “dam for a dam” strategy, where India builds its dams to counter Chinese upstream projects, is not the only way to address the water security threats posed by China’s control over trans-border Rivers. While building dams can provide some leverage, it is neither a long-term solution nor a risk-free strategy.
      • Excessive dam-building could worsen floods by altering natural river flow. The Northeast is a seismically active zone, and excessive dam construction increases the risk of earthquakes and landslides.

6: What are your recommendations for India to counter China’s dam Aggression?

      • India must adopt a multi-pronged approach that includes diplomacy, technological advancements, international cooperation, and legal mechanisms.
      • Diplomatic engagement should try to reach a water-sharing agreement. India must push for bilateral negotiations on water flow guarantees, especially for the Brahmaputra. A possible framework could include year-round data sharing on water flows, a dispute resolution mechanism, and prohibitions on unilateral water diversion projects.
      • India should resort to technological and intelligence-based monitoring, using satellites, drones, and AI-based hydrological models to track Chinese dam activity in Tibet. Early warning systems could help predict and mitigate sudden water releases or drought-like conditions. Sensor networks along Indian rivers could provide real-time data on water levels, quality, and possible upstream activity.
      • India must work with Bangladesh, Bhutan, and Nepal, which depend on trans-border rivers. A joint water-sharing agreement with downstream countries can increase diplomatic pressure on China. India can engage global institutions like the UN Water Conference and Indo-Pacific Alliances (QUAD) to raise concerns over China’s water militarisation.
      • India could take the “China Dam Issue” to international forums such as the International Court of Justice (ICJ) (though China is unlikely to comply), UNESCO, and the Mekong River Commission (as precedents for cross-border river management). India can also push for a South Asian Water Treaty, similar to the Mekong region’s agreements.
      • Developing India’s water infrastructure, such as innovative water storage projects that can absorb excess water from floods and small-scale hydropower projects that reduce risk while ensuring water security.
      • Instead of relying on a reactionary “dam for a dam” approach, India should pursue a balanced mix of diplomacy, surveillance, legal pressure, and selective dam-building.
      • While building some dams is necessary, it should be part of a broader water security strategy.

 

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613: INDIAN QUANDARY ABOUT PROCUREMENT OF FIFTH-GENERATION FIGHTER AIRCRAFT

 

My Article was Published in the Chanakya Diaries, Issue 2, Spring 2025.

 

The world of military aviation has witnessed a significant leap in technological advancements, particularly in developing fifth-generation fighter aircraft (5GFA). These next-generation fighter jets are equipped with stealth technology, advanced avionics, and superior weaponry, allowing them to operate in highly contested airspaces. As global military technologies advance, so does the need for air forces to adopt cutting-edge systems capable of responding to emerging threats. Acquisition of such advanced technologies is crucial for maintaining air superiority and securing national interests. However, India’s path to acquiring fifth-generation fighters has been filled with challenges, forcing the country into a quandary about securing these crucial assets for its Air Force. This article delves into India’s dilemma regarding 5th-gen fighter jets, exploring the complexities of the decision-making process, the challenges posed by current defence procurements, and the country’s broader defence and geopolitical considerations.

 

Fifth-Generation Fighter Aircraft

Fifth-generation fighter aircraft represent the pinnacle of modern military aviation, incorporating cutting-edge stealth, advanced avionics, superior manoeuvrability, and network-centric warfare capabilities. These aircraft are designed to achieve air superiority while minimising detection through radar-evading features such as internal weapons bays, composite materials, and aerodynamic shaping. Notable examples include the U.S. F-22 Raptor and F-35 Lightning II, China’s J-20, and Russia’s Su-57. Unlike previous generations, fifth-generation fighters rely on sensor fusion, artificial intelligence-assisted decision-making, and high-capacity data links to dominate the battle-space. Their integrated avionics provide pilots with unparalleled situational awareness, allowing seamless coordination with other forces and unmanned systems. High-thrust engines with supercruise capability enable sustained supersonic speeds without afterburners, enhancing operational range and fuel efficiency. Furthermore, their electronic warfare and cyber capabilities allow them to disrupt enemy communications and radar systems. While these aircraft offer unmatched lethality and survivability, their complexity and cost present production, maintenance, and procurement challenges. Nations investing in fifth-generation fighters seek battlefield dominance and strategic deterrence, as control of the skies remains a decisive factor in modern warfare. As military technology advances, these fighters continue to evolve, shaping the future of aerial combat.

 

IAF Challenges and Necessities

Prevailing Challenges. India is a major regional player, and due to its unique geographical location and geo-political environment, it faces a collusive threat (from its two nuclear-powered unfriendly neighbours) with significant chances of military conflict. This unique position dictates that the country be able to deter her hostile neighbours from any military misadventure singly or collusively. Besides land borders being the main reason for the dispute, the security of the IOR region would also be a major security necessity. IAF would be required to offer options to meet India’s domestic and regional security requirements.

Air Threat. For a considerable time, the IAF enjoyed an edge in modern combat aircraft over its rivals – the Chinese People’s Liberation Army Air Force (PLAAF) and the Pakistan Air Force (PAF). This situation is changing with the PLAAF transformation, China’s investment in aerospace research and development, and aircraft manufacturing. China has inducted its two home-grown stealth fighters (J-20 and J-31) in large numbers and has already flown sixth-generation prototypes. Pakistan continues to be in collusion with China. PAF has inducted Chinese J-10 and JF-17 aircraft and has desired to induct Chinese fifth-generation aircraft.

Urgent Necessity. The Indian Air Force’s current strength is significantly below its sanctioned level. Its indigenous development of fourth—and fifth-generation aircraft faces technological hurdles and time delays. In the face of prevailing challenges, India cannot afford to lag in its military capability. The impending air threat from China and Pakistan has made the acquisition of fifth-generation fighters an urgent and necessary priority to enhance the IAF’s deterrence value.

 

Acquisition Efforts

Collaborative Effort. India’s journey toward acquiring fifth-generation fighter aircraft began with an ambitious collaboration with Russia. In 2007, India partnered with Russia to co-develop the Su-57, also known as the T-50 or PAK-FA. This project was expected to yield a fifth-generation fighter with advanced stealth capabilities and cutting-edge avionics, making it a crucial addition to India’s fleet. While India’s collaboration with Russia began with great optimism, several issues soon emerged related to cost overruns, development delays, and technological shortcomings, leading to re-evaluating the program. 2018, after years of joint research and development, India decided to pull out of the Su-57 program, marking a pivotal moment in its fifth-generation fighter aspirations. The decision left India searching for alternative solutions.

MRFA Acquisition. The history of India’s Multi-Role Fighter Aircraft (MRFA) acquisition effort is marked by ambitious plans and evolving defence strategies to modernise the IAF’s fighter fleet. The origins of the MRFA initiative can be traced back to the Medium Multi-Role Combat Aircraft (MMRCA) tender issued in 2007, which sought to acquire 126 fighter jets to replace the ageing MiG-21 fleet. After extensive evaluations and trials, the Dassault Rafale emerged as the preferred choice in 2012; however, contractual disagreements and cost escalations led to the eventual scrapping of the deal in 2015. In its place, the Indian government opted for a government-to-government deal to procure 36 Rafale jets in 2016 to meet urgent operational needs. The failure of the MMRCA tender to materialise in its original form highlighted the complexities involved in large-scale defence procurements, including cost considerations, technology transfer requirements, and offset agreements. In response to these challenges, the IAF redefined its requirements and reinitiated the procurement process under the MRFA program in 2019. The renewed effort sought to leverage lessons learned from the previous tender while emphasising indigenisation and the development of India’s defence manufacturing capabilities under the ‘Make in India’ initiative. Unlike its predecessor, the MRFA acquisition focuses more on domestic production, requiring foreign vendors to collaborate with Indian defence firms to establish local assembly lines and facilitate technology transfers.

Overview of the MRFA Acquisition Program. The MRFA acquisition program is a critical initiative by the Indian Air Force to acquire 114 advanced multi-role fighter jets to enhance its operational capabilities and replace its ageing fleet of legacy aircraft. Under MRFA, the IAF aims to procure state-of-the-art fighters that can undertake various combat roles, including air superiority, ground attack, reconnaissance, and electronic warfare, ensuring dominance in modern warfare scenarios. The MRFA acquisition process is structured under the ‘Make in India’ initiative, emphasising indigenous production and technology transfer to boost the domestic defence industry. The IAF issued a global Request for Information (RFI) in 2019, inviting proposals from major aircraft manufacturers worldwide. The procurement is expected under the Strategic Partnership (SP) model, which involves collaboration between foreign Original Equipment Manufacturers (OEMs) and Indian defence firms. This collaboration required establishing production lines within the country and transferring critical technologies, reducing import dependency and promoting self-reliance in the defence sector.  One of the essential requirements outlined by the IAF in the MRFA tender is the transfer of technology (ToT), which will allow Indian defence companies to gain technical expertise in aircraft manufacturing, maintenance, and future upgrades. The current situation stresses the inclusion of fifth-generation aircraft in the acquisition plans.

Domestic Solution: AMCA. India has pursued an indigenous solution to its 5th-gen fighter needs through the Advanced Medium Combat Aircraft (AMCA). The AMCA is being developed by the Aeronautical Development Agency (ADA) under the Indian Ministry of Defence. It is intended to be a 5th-gen fighter with advanced stealth technology, super-cruise capabilities, and cutting-edge avionics. While the AMCA represents a step toward self-reliance and is seen as a critical component of India’s long-term military strategy, several challenges are associated with its development. The development of the AMCA has faced numerous delays. Initially slated for entry into service by the mid-2020s, it is now expected to enter service closer to the late 2030s. The project also faces significant technological challenges in developing a fighter of this sophistication. While progress is being made, achieving the same level of performance and stealth as the F-35 or Su-57 remains a formidable task.

Choices and Possibilities. Both the U.S. and Russia are aggressively pitching their fifth-generation aircraft. Besides outright purchase, India may explore collaboration and joint development programs or technology transfers (Stealth, Aero-engines and advanced avionics) that accelerate AMCA’s timeline.  Limited acquisitions of F-35s or Su-57s focusing on training and operational familiarity while ensuring that AMCA remains the primary focus are also possible options.

 

The Foreign Procurement Dilemma

Given the delays and challenges of Indigenous development, India has to explore foreign procurement options for fifth-generation fighter jets. The United States, with its F-35 Lightning II and the Russian SU-57, has emerged as a potential source of these advanced aircraft. However, several geopolitical, diplomatic, and technical barriers complicate purchasing these aircraft.

U.S. Signals: F-35 Lightning II. The U.S. has been subtly signalling a potential offer of the F-35 to India. The aircraft first appeared in the Indian skies in the previous aero India 2023. Although Washington has not officially proposed a deal, diplomatic engagements and increasing defence cooperation between the two nations suggest that such a move could be on the horizon. Some analysts believe the U.S. could propose the F-35 as a deterrent against China, leveraging India’s growing security concerns to break its traditional reluctance toward American fighter jets. The F-35, developed by Lockheed Martin, represents the epitome of 5th-gen fighter capabilities. It is a highly advanced stealth fighter, but its suitability for the Indian Air Force (IAF) is debatable due to operational, geopolitical, and logistical factors. While the F-35 offers cutting-edge stealth, sensor fusion, and electronic warfare capabilities, making it a formidable asset against threats, its integration into India’s diverse fleet (Su-30MKI, Rafale, Tejas) would be complex and costly. The aircraft’s high maintenance burden, reliance on U.S. software and spare parts support, and logistical challenges in high-altitude operations raise concerns. Additionally, India’s deep defence ties with Russia and its commitment to strategic autonomy could complicate an F-35 deal. The U.S. has been selective about F-35 exports, prioritising NATO allies and key Pacific partners, making approval for India uncertain. With unit costs exceeding $80 million and long-term sustainment expenses, the F-35 may not be the most cost-effective option compared to expanding Rafale squadrons or accelerating the indigenous AMCA program.

Russia’s Pitch: The Su-57 Felon. Russia is presenting the Su-57 Felon as a possible solution for India’s air power needs. The offer is sugar quoted with an offer to reduce price, Integration of hypersonic weapons, ToT and easy payment options. The Su-57, initially designated the PAK FA (Prospective Airborne Complex of Frontline Aviation), began development in the early 2000s under the Russian Ministry of Defence. The aircraft was conceived as a multirole stealth fighter capable of air superiority and ground attack missions. Given India’s deep-rooted defence ties with Russia and its existing fleet of Su-30MKI fighters, Moscow sees this as a natural extension of its strategic partnership. However, India has been cautious about procuring the Su-57 due to previous setbacks in the Indo-Russian Fifth Generation Fighter Aircraft (FGFA) project. While the Su-57 has promising features, the program has faced several challenges that have slowed its development and deployment. The aircraft has faced delays related to engine development and avionics integration.  Moreover, there have been questions about the production rate and the number of aircraft that will be built in the coming years. The Russian Air Force has been slow to field the aircraft, and it remains unclear how many Su-57s will ultimately be deployed, particularly as Russia faces significant budgetary constraints and competing priorities.

Comparative Analysis. The Su-57’s development and operational capabilities are often compared to the U.S. F-22 Raptor and F-35 Lightning II, representing American stealth technology’s pinnacle. While the Su-57 has similar features, such as stealth and advanced avionics, it lags in some performance areas. For example, the F-22 is generally considered superior regarding stealth and overall aerodynamics, while the F-35 is unrivalled in sensor fusion and multirole capabilities. However, the Su-57 holds unique advantages that could make it a formidable platform in specific scenarios. Its super manoeuvrability and advanced sensor capabilities make it highly suited for air-to-air combat and could give it an edge over Western fighters in certain situations. Moreover, its weapons capacity and the potential future integration of hypersonic weapons give it a longer-range and more potent offensive capability than current Western fighters.

 

Indigenous Effort.

Push for Indigenous Development: The AMCA Program. India’s exit from the Su-57 program signalled a renewed focus on indigenous development. Under pressure to modernise and enhance its capabilities, India pushed to develop its fifth-generation fighter. The Advanced Medium Combat Aircraft (AMCA) program was born out of this necessity. The AMCA was conceived as India’s first fully indigenous fifth-generation fighter. The project envisions incorporating stealth, advanced avionics, supercruise and multi-role capabilities. While the AMCA represents a significant leap forward for India’s indigenous defence capabilities, its development has not been without challenges. The program has faced technological hurdles, financial constraints, and inordinate delays. The prototype of the AMCA is expected to take flight in the late 2020s, with full-scale production not anticipated until the early 2040s. The AMCA is crucial to India’s long-term defence strategy. Its delayed timeline and high costs mean the country must consider alternatives soon to fill the capability gap.

Effect on the AMCA Development. India’s procurement of foreign fifth-generation fighter aircraft could positively or negatively affect the development of its Advanced Medium Combat Aircraft (AMCA) program. On the one hand, it could gain valuable insights into the design and technology of a fifth-generation fighter aircraft, including stealth capabilities, advanced avionics, and engine performance. This could accelerate the learning curve for Indian engineers and help improve AMCA’s design.​ On the other hand, foreign procurement could divert attention and resources from the AMCA project, as both programs require significant investment and focus. This could delay AMCA’s development as funding and manpower may be reallocated. While foreign procurement might provide a short-term solution, procuring it would reinforce India’s dependency on foreign technology, which contradicts the AMCA’s goal of achieving greater self-reliance in defence technology. It might also delay the domestic innovation necessary to produce the AMCA independently.

 

Procurement Considerations: A Tight Rope Walk.

 India’s pursuit of fifth-generation fighter aircraft (FGFA) is a complex balancing act, requiring careful evaluation of strategic, operational, and geopolitical factors. Despite the aggressive pitches from Russia and the U.S., India remains steadfast in its commitment to self-reliance. The country has several valid concerns about acquiring stealth fighters from external sources. The procurement decision must balance national security imperatives with long-term self-reliance goals.

Financial Constraints. While the need for advanced fighter aircraft is pressing, India’s defence budget remains constrained. The costs of acquiring 5th-gen fighters—whether through foreign procurement or domestic development—are substantial.

Strategic Autonomy. India has historically maintained strategic autonomy in defence procurement.  Outright procurement of fifth-generation fighters would increase dependency on foreign suppliers for maintenance, spares, and software updates. However, developing an indigenous FGFA is time-intensive and costly, necessitating interim solutions such as collaborations or selective acquisitions. Balancing these factors ensures India can act independently in future conflicts without external constraints.

Operational Sovereignty. Fifth-generation fighters rely heavily on integrated software, sensor fusion, and artificial intelligence, requiring continuous updates and security oversight. Procuring an FGFA from the U.S. or Russia may come with software black boxes, limiting India’s ability to modify or customise the aircraft to suit its operational needs. In contrast, an indigenous program like the AMCA would ensure complete control over mission configurations, electronic warfare systems, and weapons integration.  India risks operational constraints without complete control in scenarios where its strategic interests diverge from supplier nations.

Transfer of Technology (ToT). India has consistently demanded significant technology transfer as part of its defence procurements. One of the most crucial considerations in FGFA procurement is access to critical technologies such as stealth coatings, advanced radar systems, and aero engines. Nations that export fifth-generation fighters typically impose strict restrictions on technology transfers to protect proprietary designs and maintain their competitive edge. India must negotiate deals that ensure meaningful technology absorption, aiding AMCA’s long-term development.

Interoperability Issues. India operates a diverse fleet comprising Russian, French, Israeli, and indigenous aircraft, leading to interoperability challenges. Integrating an FGFA with existing platforms is critical, especially for network-centric warfare. American platforms, such as the F-35, rely on proprietary Link 16 data-sharing protocols, which may not be compatible with India’s indigenous combat management systems. On the other hand, Russian fighters align with existing IAF infrastructure but lack the networking capabilities of Western aircraft. Any FGFA procurement must ensure seamless integration with India’s Integrated Air Command and Control System (IACCS) while avoiding security vulnerabilities tied to foreign command structures.

Reliance and Reliability Concerns. Fifth-generation fighters require a robust supply chain for spare parts, software updates, and maintenance. India’s experience with Russian platforms, such as the Su-30MKI, has shown that supply bottlenecks can impact fleet availability. Similarly, reliance on the U.S. for F-35 components could expose India to geopolitical leverage, where supply disruptions may occur due to policy shifts. An indigenous FGFA would mitigate these risks. However, India must bridge the gap in manufacturing critical components, such as high-thrust jet engines and low-observable coatings, to ensure long-term sustainability.

Geopolitical Pressures. India’s FGFA decision is deeply entangled in global power dynamics. Acquiring an American fighter would enhance ties with QUAD allies (U.S., Japan, Australia) but could strain India’s strategic partnership with Russia. Conversely, a Russian FGFA might provoke U.S. sanctions under CAATSA (Countering America’s Adversaries Through Sanctions Act), complicating India’s defence cooperation with Western nations. Thus, any procurement choice must navigate these external influences without compromising national security.

 

Way Ahead

India’s quest for fifth-generation fighter aircraft is emblematic of the broader challenges emerging powers face in the 21st century. While the country has made significant strides in developing Indigenous defence capabilities, the path to acquiring fifth-generation fighters remains fraught with challenges. The choices India makes in the coming years will shape its defence posture and air superiority in the decades ahead.  While the AMCA holds promise for India’s long-term goals, the immediate need for advanced fighter aircraft means that foreign options, including the F-35 or SU-57, will likely remain in play despite the geopolitical and financial challenges they present.

India’s success in this endeavour will depend on its ability to integrate technology, manage its defence budget, and forge strategic partnerships that advance its security interests in a rapidly evolving global landscape. Given the complexity of fifth-generation fighter procurement, India must focus on accelerating the AMCA program while exploring selective technology partnerships. A dedicated task force with a top-down approach could ensure timely execution. Increased funding, private sector involvement, and strategic technology acquisitions could further bolster the program.

India must balance Indigenous development with the need for foreign procurement while navigating a complex geopolitical landscape. While India will likely continue seeking a combination of foreign procurements and domestic development, the path forward will require careful navigation of technological and strategic challenges. Ultimately, India’s ability to field a fleet of 5th-gen fighters will depend on its ability to balance these competing demands while securing the necessary resources and partnerships to maintain its regional and global standing.

 

Conclusion

The stealth fighter war is not just about aircraft but about India’s position in the global defence landscape. The choices made in the coming years will define India’s air power for decades. While Aero India 2025 will serve as a grand stage for the U.S. and Russia to showcase their best fighters, India must navigate this battle carefully. Whether it chooses a limited acquisition, a joint development initiative, or a complete rejection of external options, one thing is clear: India’s future in stealth aviation will be determined by its ability to balance strategic autonomy with practical air power needs.

 

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Information and data included in the blog are for educational & non-commercial purposes only and have been carefully adapted, excerpted, or edited from reliable and accurate sources. All copyrighted material belongs to respective owners and is provided only for wider dissemination.

References:-

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