But the current government just placed orders for 21 Mig29's to be procured from russia at 7418cr, i,e $49 Million, are you insinuating that the All-knowing, All Planning IAF bought Mig29 at almost twice the price of advanced versions of MKI? That doesn't bode well for the IAF?
That price isn't unit price, it includes cost of upgrades, spares and ground support equipment. It's cheaper than the LCA contract.
Also you are confused about two different prices, buying from Russia to make in India and buying directly from Russia come at two different prices. You made the same mistake in the small arms thread, where you are assuming the $700 for made in Russia and $900 for made in India are the same. Their currency has tanked, nothing more. They can set whatever price they want for made in Russia items because because their stuff is already cheap to produce, but can't do the same for Russian tech made in India. You should read up on the exchange rate dynamics and how it affects contracts in the pre and post ruble collapse.
Since the Mig-29 upgrade and other contracts, including MRO and engine production, were signed before the ruble collapsed, we are paying the Russians based on the old rates. Which is why our MKI costs $55M while the new Russian MKI costs $25M. Since we signed this deal through a GTG, we cannot take advantage of the lower pricing, it would have worked the other way round if the ruble had strengthened instead, which meant lower profits in rubles. Contract negotiations were done using dollars at the time, so we will continue paying the same amount regardless of the ruble's price. Not to mention the Mig-29 price is from the 80s, with escalation added to it. Plus when you make in India, you are paying standard Indian costs to produce the same, you cannot take advantage of the Russian costs in any case. It's common sense, if something is made in China for $10, the same thing can't be made in the US for $10, the price is going to be much higher. So the $700 rifle that's made in Russia is likely being globally sold at perhaps a 50-60% profit margin whereas the $900 rifle made in India is likely being sold at less than 10% profit margin.
It's nothing strange that a Su-35 now costs $90M each in the global market, including spares, maintenance, training, weapons and insfrastructure. They are selling their originally $65M aircraft at less than $45M now, while their air force is buying it at $25M. The Su-57 as well was estimated at 80-90M before the ruble collapse, but now the Russians are buying it for their own use at $35M, although the international price could be much higher due to their class monopoly.
Following the announcement of a planned order by the Russian Air Force for 76 Su-57 next generation air superiority fighters, the price of the acquisition was reported by
militarywatchmagazine.com
Following the announcement of a planned order by the Russian Air Force for 76 Su-57 next generation air superiority fighters, the price of the acquisition was reported by Russian media at just 170 billion - or $2.6 billion. This extremely low cost was met with much surprise by analysts - amounting to just £35 million per fighter where a price approximately three times this had been expected.
The FGFA R&D contract also fell from $5.5B to $3.7B due to the exchange rate difference.
India is purportedly pushing to sign the main R&D design contract this year.
thediplomat.com
[In December 2015] Russia tried to salvage the joint project by making India an offer to cut down its financial contribution from 6 to $ 3.7 billion for three PAK FA T-50 prototypes and technology transfers.
So in case we buy Su-57, we should be able to get it at a much cheaper rate than the Rafales even if the Russians add a 50% profit margin over the $35-50M unit price, but, here's the clincher, as long as it's entirely made in Russia.