The Modi government’s decisive rejection of U.S. F-35 stealth fighter jets represents a pivotal moment in India’s defence strategy, emphasising strategic autonomy over external pressure while demonstrating calibrated diplomatic restraint amid escalating trade tensions with the Trump administration, according to a report by Bloomberg.
F-35 Rejection Signals Strategic Shift
Despite explicit offers from President Trump during Prime Minister Modi’s February 2025 White House visit, India has categorically informed Washington that it is not interested in acquiring the F-35 stealth fighter jets. This decision comes even as Trump threatened additional penalties on India over its continued purchases of Russian oil and weapons, marking a significant departure from traditional defence procurement patterns.
Read- Indigenous Hovercraft Construction For ICG Begins At Chowgule Shipyard
Indian officials have conveyed that the country remains committed to its long-term goal of building defence self-reliance under the “Make in India” initiative, prioritizing co-development and domestic manufacturing over expensive foreign acquisitions. The Modi government’s position reflects a strategic preference for joint design and manufacturing partnerships rather than purchasing high-end American warplanes outright.
Diplomatic Restraint Amid Economic Pressure
The Modi government has chosen restraint over retaliation in response to Trump’s unexpected announcement of a 25 percent tariff on Indian imports, effective August 1, 2025. While expressing disappointment over the move, senior officials in New Delhi affirmed that India will not be provoked into hasty countermeasures and will instead pursue constructive economic engagement.
Commerce Minister Piyush Goyal addressed Parliament with measured resolve, stating that “the implications of the recent developments are being examined” and affirming that the government will take “all necessary steps to secure and advance our national interest”. His response demonstrated diplomatic maturity while protecting India’s core interests, particularly in agriculture, dairy, and micro, small and medium enterprises.
Trump’s Provocative Stance And India’s Response
Trump’s rhetoric has escalated significantly, describing India and Russia as “dead economies” and declaring he “doesn’t care what India does with Russia”. His inflammatory remarks calling India’s economy “dead” drew sharp political reactions domestically, with opposition leader Rahul Gandhi controversially backing Trump’s assessment while questioning the government’s economic management.
However, the Modi government’s response has been notably restrained and fact-based. Rather than engaging in rhetorical exchanges, officials have focused on substantive policy positions and economic realities. Piyush Goyal’s parliamentary address served as a data-driven counter to Trump’s assertions, highlighting India’s trajectory to become the world’s third-largest economy and emphasising the country’s commitment to mutually beneficial trade relationships.
Read- Release Trials of RudraM-III Weapon From Modified Su-30MKI Fighter Successfully Carried Out
India’s Fifth-Generation Fighter Strategy
With the indigenous Advanced Medium Combat Aircraft (AMCA) not expected to be operational before 2035, the Indian Air Force faces a critical capability gap in fifth-generation fighters. Currently, only two fifth-generation combat aircraft are available internationally: the U.S.-made F-35 and Russia’s Su-57.
India’s apparent tilt toward the Russian option underscores its strategic autonomy and continuation of long-standing defence partnerships with Moscow, even at the cost of heightened friction with Washington. Russia has offered a comprehensive package including the Su-57E with full technology transfer, domestic assembly at Hindustan Aeronautics Limited’s Nashik plant, and potential localisation rates reaching 60 percent.
The Russian proposal includes integration capabilities for Indian systems like the Astra air-to-air missile, Rudram anti-radiation missile, and Virupaksha AESA radar, aligning more closely with India’s “Atmanirbhar Bharat” objectives.
Atmanirbhar Bharat: Policy Architecture
The Atmanirbhar Bharat initiative in defence represents a comprehensive strategy encompassing multiple dimensions of self-reliance.
The policy framework includes:
Indigenous Manufacturing Focus: Encouraging domestic production through positive indigenisation lists, which mandate exclusive procurement from Indian manufacturers for specified defence items. Defence exports have increased dramatically from INR 686 crores in 2013-14 to INR 23,622 crores in 2024-25, representing a 34-fold increase.
Private Sector Integration: The defence sector has opened up to private companies, with Foreign Direct Investment limits raised to 74 percent through automatic routes. The AMCA program marks a radical departure by allowing private firms to bid alongside defence PSUs for major fighter aircraft projects.
Technology Transfer Requirements: Foreign companies winning defence contracts must invest a minimum of 30 percent of contract value in India’s defence ecosystem, ensuring meaningful technology transfer and capability building.
Read- India’s Quasi Tactical Ballistic Missile Pralay Is A Step Towards Rocket Force
Economic Implications And Strategic Calculations
India’s approach reflects sophisticated economic and strategic calculations. Despite considering increased purchases of American natural gas, communication equipment, and gold to reduce trade surplus with the U.S., no defence purchases are being planned. This decision protects India’s long-term strategic interests while maintaining diplomatic flexibility.
The 25 percent tariff places India at a competitive disadvantage compared to regional peers, with Japan and the European Union facing 15 percent tariffs, Vietnam 20 percent, and Pakistan receiving a reduced 19 percent rate. However, India’s commitment to protecting farmers, entrepreneurs, and MSMEs remains non-negotiable.
Future Trajectory
The Modi government’s handling of this complex diplomatic and economic challenge demonstrates mature statecraft that balances immediate pressures with long-term strategic objectives. By rejecting the F-35 deal while maintaining diplomatic engagement, India has signaled its commitment to strategic autonomy without completely closing doors to future cooperation.
The emphasis on “Atmanirbhar Bharat” in defence manufacturing reflects a fundamental shift toward building indigenous capabilities that enhance India’s role as a net security provider in the Indian Ocean region. This approach ensures that India’s defence modernisation serves broader national objectives of technological advancement, industrial development, and strategic independence.
The current tensions, while challenging, may ultimately strengthen India’s resolve to pursue self-reliant defence development while maintaining its principled stance on international engagement based on mutual respect and benefit rather than coercion.
Based On A Bloomberg Report
Agency
