India is in negotiations with Japan for Kawasaki C-2 military transport aircraft to replace the aging fleet of soviet era Indian Air Force (IAF) Ilyushin IL-76 and Antonov An-32 transport aircraft.
The IAF is exploring options to consolidate tactical and strategic airlift needs with the Airbus C-295M to replace the Avro HS-748 fleet and seeking heavier platforms like the Japanese C-2 to succeed IL-76 aircrafts.
The IAF current transport fleet comprises over 100 An-32s, 14 operational IL-76s, 11 C-17 Globemasters, 56 Avro HS-748s and 12 C-130J Super Hercules. The British Avro turboprop aircraft’s are being progressively replaced by the C-295M under a ₹21,935-crore contract signed in 2021 with Airbus C-295M with a payload capacity of 9.5 tonnes, designed for tactical missions.

The Airbus C-295M is assembled in Vadodara by Tata Advanced Systems Limited with the first locally built unit expected by September 2026 as a potential replacement for the An-32 fleet in service since the 1980s—and diminishing operational readiness.
While the IAF plans to retire some of the IL-76, inducted in 1985-1989, the fixed wing four engine airlifted will remain a critical asset for heavy-lift strategic airlift, despite its advancing age.
The IAF had plans to extend the technical life of 11 IL-76MD aircraft while retire some of these aircraft starting in 2030 after exceededing 40 years of service.
The Kawasaki C-2 payload capacity, while slightly below the IL-76MD is a viable candidate given its modern design and operational efficiency.