It has been long since Lockheed has been saying it will make F-16 in India but this until now according to Lockheed will only be possible if India selected F-16 block 70/72 as winner of the multi-billion dollar MMCRA-II (CLICK HERE FOR LINK TO MMRCA-II POST). Also Lockheed few months ago declared that it will not make the jets in India but will be shifting its production line to Texas instead and blamed that India was not doing work fast enough and it was taking too much time (it was a move done to strong arm the govt to favour the f-16 in my opinion but it failed miserably).
Now yesterday it was declared that Lockheed has now signed a pack with TATA ADVANCED SYSTEMS to produce F-16 block 70/72 which is the most advanced version of jet in India and this comes a week ahead of PM Narendra Modi's visit to US. Though the condition still remains that for this to happen India must select F-16 as winner of MMRCA-II.
Currently there are two contenders in MMRCA-II which are SAAB GRIPEN E & LOCKHEED MARTIN F-16 BLOCK 70/72.I have done comparison and given my views on both in my post link to which is below.
F-16 block 70/72 VS SAAB GRIPEN E - MMRCA II JET RACE
IAF is to hold fast-tracked testing of both jets soon. Only after trial will IAF select a fighter to be made in India and the number of fighters which will be made will be about 120-150 jets and the number can go as high as 200 (which is unlikely but still a chance).