Approved for public release; distribution is unlimited / This thesis analyzes the Indian Air Force's (IAF) robust modernization campaign and explores why the IAF is on the path to transforming itself from an air force dedicated to air defense to one capable of global force projection. The stunning examples of airpower in the two Gulf Wars, Kosovo, and Afghanistan proved to the Indian leadership the value of modern airpower. Thanks to the amazing growth of the Indian economy, the IAF is gradually acquiring the weapon systems characteristic of a global aerospace force. Pakistan and China are concerned about the motivations behind IAF's modernization efforts and already have begun to improve their own air capabilities in response to any conventional or nuclear contingency. The responses of Pakistan, in particular, indicate the lowering of the nuclear threshold in South Asia. On the other front, a potential arms race between India and China is anticipated. The United States may be able to neutralize the damaging effects of India's military build-up by increasing its arms exports to both India and Pakistan. Specifically, the sale of American F-16s to both countries would fortify bilateral relation with the United States, maintain the fragile security balance in South Asia, and minimize China's influence in the region. / Captain, United States Air Force