If this goes through with production, then the Indian government will have to pay royalty fees to the UAE Government.
http://www.defenseindustrydaily.com/the-uaes-f-16-block-60-desert-falcon-fleet-04538/
No they wont. Thats not how this will work out. LM is not "giving" the jet or IP to India. LM is "relocating" the location. LM owns everything.
On the other hand, UAE will pay Tata-LM JV for maintenance. Which is pittance in comparison to what India will loose from day 1 the agreement is signed.
India will not gain anything towards our industry. Just political points, which remain to be seen.
Does this mean Pakistan is moving on from F-16s? Eurofighter seems like the next best thing given that India is getting Rafale as well.
Pakistanis knew days of US backing them is long over. They already in JV with Chinese. Lets not go into who owns what. They are getting the jets in cheap. It flies, It fires, It lands. Period.
India is trying to achieve that using this deal. Indians love phoren maal.
PAF will move to J-31 when Chinese government is willing to sell it to them in favorable rates. Don't expect PAF F16 to enter Indian air space for maintenance.