IAF dont need 5th gen fighter yet as it will be countering 3rd gen fighters in PAF most the times. IAF already has 4.5th gen fighter and v dont need MRCA to be 5th gen... and India is also working on FGFA closely with Russia, may be sometime after induction of MRCA and the MKI gets its full number the 5th gen fighter will be thought to IAF but not now...
And for you will PAF counter 4th, 4.5th gen fighters IAF has with 3rd gen?
Hopefully you understand what a 3rd gen and 4/4.5 gen is. If going strictly by definition, none of the aircraft in the current service of the IAF are 4.5 gen. If no other modification, a true 4.5 generation aircraft incorporates an AESA capability. IAF has exactly zero aircraft with this capability. TVC/IRST and an Israeli EW kit does not make your MKI a 4.5 gen. aircraft as much as you would like to believe. At the very basic, the MKI is still flying with a PESA capability which is nothing revolutionary over lets say the Captor PD radar on the Typhoon. So lets just think through these things logically. There is no need to create new classes of aircraft when in reality there is no specific difference in the aircraft of 4th gen. vs. 4.5 gen aside from avionics. And the nice thing about avionics is that any aircraft can get upgrades.
Nothing else that is on the IAF aircraft which are touted to be 4.5 gen is out of the ordinary. IRST, ECM/EW, glass cockpit etc. and DFW are available to Pakistan in various platforms.
Nothing that PAF has starting from MLU F-16s, ROSE Mirage, BLK-52s, JF-17 and FC-20 is less than 4th generation. There is no structural changes in the 3rd and 4th generation aircraft aside from avionics. The F/A-18 has been both a 3rd gen and a 4th gen aircraft after newer avionics and AESA was introduced to the platform. The 4.5 generation classification is essentially for those aircraft that came after 3rd gen but could not fit the 5th generation classification.
I know for a fact that PAF have evaluated the Typhoon fairly closely and are very confident that they can have the same capabilities in J-10. So all this talk about 3rd, 4th and one better 4.5 generation is to excite buyers and fans. There is nothing revolutionary in terms of the aircraft design etc. starting from 3rd gen to 4/4.5 gen. If you have the money, you can pay to glass the aircraft and upgrade its avionics and that will move you up the classification. This is the name of the game currently.
You will see in the next few years that PAF and IAF will be fielding the same capabilities on their platforms because of the way the integration will take place on their aircraft.
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