Exercise Vayu Shakti is a biennial exercise conducted by the Indian Air Force (IAF). It is designed to showcase the offensive and defensive capabilities of the IAF and to demonstrate its readiness and preparedness to undertake a variety of air operations.

Statement 1: It is held once every three years.
This statement is incorrect. Exercise Vayu Shakti is conducted once every two years, making it a biennial exercise. The exercise aims to assess and validate the operational concept of the IAF and enhance its combat capabilities.

Statement 2: It demonstrates the offensive and defensive capabilities of the Indian Air Force.
This statement is correct. Exercise Vayu Shakti is specifically designed to showcase the offensive and defensive capabilities of the IAF. During the exercise, the IAF demonstrates its ability to undertake various air operations, including aerial strikes, air defense, close air support, and interdiction missions. The exercise serves as a platform for the IAF to display its firepower, precision, and coordination in executing these operations.

During Exercise Vayu Shakti, the IAF showcases the integration of its various platforms, such as fighter aircraft, transport aircraft, helicopters, and unmanned aerial vehicles (UAVs). The exercise also involves joint operations with the Indian Army and the Indian Navy to enhance interoperability and coordination between the three services.

The exercise is conducted at a designated air force base in India, and it typically includes a wide range of aircraft, including fighter jets like Sukhoi Su-30MKI, Mirage 2000, Jaguar, and MiG-29, transport aircraft like C-130J and An-32, helicopters like Mi-17 and ALH Dhruv, and UAVs like Heron and Harop.

Exercise Vayu Shakti not only provides an opportunity for the IAF to showcase its capabilities but also serves as a training platform for its personnel. The exercise involves realistic scenarios and live-fire exercises to simulate actual combat situations. It allows the IAF to evaluate its tactics, techniques, and procedures and identify areas that require improvement.

In conclusion, Exercise Vayu Shakti is a biennial exercise conducted by the Indian Air Force to demonstrate its offensive and defensive capabilities. It is held once every two years and involves the integration of various platforms and joint operations with the Indian Army and the Indian Navy.