Building means exactly that - joint production with India as a base and supply hub. Assembling holds no significant advantage either politically where it would be seen another blow to Make in India or strategically in terms of acquiring production and technological expertise.
Regards
I don't think it means anything to say, build completely. Because everyone, even the mighty United States, have to use components and materials from across the place.
Also, I am kind of skeptical that Jet Engine manufacturing will be shifted to India. Engines are a top notch item, which supports thousands of extremely highly paid jobs, and which have hefty profit margins.
India doesn't even have a skilled work force for this kind of work.
So, the question again returns to how much of F16 going to be build in India.
Manufacturing in India ..does not mean India will buy them...it means in future you will buy "Made in India" F16s
It is not a commodity that it can be made anywhere and sold anywhere. It involves deeply political and strategic thinking.
Also, F16 by 2020, will be an extremely fringe product to say the least for most modern militaries.
I think India is jumping the gun here. Try building up the economy, get more people skilled, and then we can think of jet engines etc may be 15 years later.
Also, any proposal for aircraft or aeronautical manufacturing should be welcomed as it will at the very least help train people for our future high tech aviation sector. We have nothing to loose. We have surplus labor.