According to Man In Charge:
Air Chief Marshal Fali Homi Major, then the chief of the air staff, was in the thick of action because of the several warnings from the Intelligence Bureau that Pakistan-based terrorists may try and launch an aerial attack on India.
According to him, IAF was ready for battle, the government did not make up its mind on whether to go to war with Pakistan. The Indian Air had planned to launch Airstrikes on terrorist camps in Pakistan-Occupied Kashmir to seek revenge for 26/11.
Meeting With Prime Minister:
Two days after the Attacks began, Air Chief Marshal Fali Homi Major met the then Prime Minister Manmohan Singh at his home. He had arrived with Defense Minister AK Antony and Defense Secretary to meet him. He said that before this meeting, he had done all the planning to take revenge. During the meeting, when he told that he wanted to conduct strikes on the terror training camp in PoK, Manmohan Singh refused to give permission to anything like that.
Not only IAF but the Navy was prepared too. The Navy had started refueling its ships and resupplying them. The Air Force was trying to teach Pakistan a lesson. The very next day of 26/11 , All the Chiefs had already discussed with each other as to how their Forces will strike Pakistan. They had an informal Plan before meeting the PM and Other senior ministers. All Chiefs submitted their plans but none were not approved by the Govt.
Air Force All Set To Strike:
Indian Air Force was fully prepared to take revenge for the attack on very next day (27 Nov), but the then UPA government did not approve the Strike. The Chief informed the Govt that The Air Force had the power to attack the militant training camp in Pakistan Occupied Kashmir and they should at least attack One Terrorist Camp to send a strong message, but at that time the UPA Government did not allow the Air Force to do it. Major said that after the 26/11 attack, India had 24 hours to attack. Pakistan was not as geared up in first 24 hrs and hence, we could have inflicted massive casualties.
IAF had its Units ready and were well prepared. However, ultimately it depends on what the government wants. The government never made up its mind to go to war.”