Tata Advanced Systems, a division of the Tata Group, may start making F-16 fighter jets with Lockheed Martin, the largest military contractor in the world, soon.

That's not it; they will be manufacturing the jets in India.

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This is great news for PM Narendra Modi just days before he heads to the United States to meet with President Donald Trump. There is one caveat though. Their F-16 Block 70 fighter jet needs to win a bid against Saab's Gripen fighter jet for producing 100-200 single-engine fighter jets for the Indian Air Force.

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Even though Saab hasn't yet announced an Indian collaborator for its newer aircraft, the Adani Group and Mahindra Group are frontrunners as of now.

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If they win the contract, Lockheed-Martin will shift its manufacturing base from Texas to India. They believe there is an export potential of $15 billion in this region apart from the IAF contract.

Apart from full service for the F-16s, Tata will also be responsible for all upgrades on the aircraft.

India, the largest importer of weapons in the world, feels they need this upgrade to their current line-up of MiGs which have already surpassed their expiry date as tensions with Pakistan and China grow.

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But, one thing which most news agencies are ignoring is the fact that the F-16 is an outdated aircraft as well. Even the latest version of the jet, the Block 70, which is being offered to India, is still way behind what the United States is using.

The US Air Force has already started the process of replacing the F-16s with the F-35s, a much more advanced fighter, and experts are viewing this move by Lockheed as a means of offloading the jets on India.

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While this is still going to be a great move for the Indian economy and Modi's “Make in India” plans, countries like Denmark, Japan, Israel, and South Korea have already ordered F-35s. Yes, it is an upgrade, but who is the biggest winner here? Lockheed or India?

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One company that seems to be making the most of this though is Tata Advanced Systems. The F-16s will be manufactured exclusively in India if this approx. $2 billion deal goes through.

While Tata does have some experience in the defence sector, we can't help but feel like this is more a case of getting rid of fighters more than anything else.