Focus on Indigenisation for IAF: India-France Mega Rafale Jet Deal Nears Completion

Written By: Anjan Kumar | Navbharat Times | 17 Jan 2026, 1:13 PM IST

Significant progress has been made in India’s ongoing negotiations with France for additional Rafale fighter jets. The focus of the deal is to ensure that the Indian Air Force (IAF) receives jets with maximum indigenisation and integration of domestic systems.

Deal Advances Further

The Defence Ministry has granted a key approval for the acquisition of 114 additional Medium Multi-Role Fighter Aircraft (MMRFA). The proposal will now be considered by the Defence Acquisition Council (DAC), the top decision-making body for defence procurement. The IAF faces a critical shortage of medium multi-role fighter jets, and until the domestically developed 4.5th and 5th generation stealth aircraft are operational, acquiring these jets is essential for national security.

According to sources cited by ET, the IAF’s proposal for 114 jets has moved forward. The plan includes specifications for aircraft with indigenous equipment and local systems, which have been approved. Reports confirm that the deal will not compromise on “source code” or domestically developed weapons systems.

Emphasis on Indigenisation

The DAC will closely examine the terms of the deal, including technical details and pricing. India’s priorities during these discussions are expected to include technology transfer, maximum use of indigenous components, incorporation of India-developed weapons, and cost-effectiveness.

French President’s Visit Adds Momentum

Currently, the 114-jet deal is estimated at over €35 billion and will require final approval from the Cabinet Committee on Security (CCS). The upcoming visit of French President Emmanuel Macron for the AI Impact Summit next month has further accelerated negotiations.

Meeting the Medium Multi-Role Fighter Requirement

India had previously acquired 36 Rafale jets from France’s Dassault Aviation for the IAF, and 26 Marine Rafale jets for the Indian Navy. Most of India’s existing fighter fleet comprises older Russian aircraft, many of which are nearing retirement. Hindustan Aeronautics Limited (HAL) is already manufacturing 180 Tejas MK1A Light Combat Aircraft (LCA), but the IAF still requires medium multi-role fighters, which this Rafale deal addresses.

Domestic Manufacturing and Production Plans

If the technology transfer goes through, it will significantly strengthen India’s aviation ecosystem. Tata Advanced Systems Limited (TASL) is setting up a specialised manufacturing unit in Hyderabad to produce four key fuselage components for the Rafale jets, catering to both domestic needs and Dassault’s global tenders. Production is expected to start by FY2028, with an annual capacity of 24 fuselages.

The French engine manufacturer Safran is also planning a plant in Hyderabad. Meanwhile, Dassault is establishing a Maintenance, Repair, and Overhaul (MRO) hub near the newly constructed Jewar Airport in Uttar Pradesh.