India and France Near Major Rafale Deal; IAF Could Receive 114 Fighter Jets

New Delhi: India and France are on the verge of finalizing a significant defence deal that could bridge the gap in the Indian Air Force’s (IAF) fighter jet fleet. The proposed agreement, expected to gain momentum ahead of French President Emmanuel Macron’s visit next month, envisages the production of Rafale fighter jets in India.

The IAF has already submitted a proposal under a Government-to-Government (G2G) framework to acquire a large number of Rafale jets. While the final quantity is still under discussion, the Air Force is estimated to require at least 114 modern fighter jets to strengthen its operational capabilities.

Approval and Financials
According to sources, the purchase will require formal approval from the Defence Acquisition Council, followed by price negotiations and clearance from the Cabinet Committee on Security. Adequate provisions must also be made in the annual defence budget. The deal could potentially be valued at around €10 billion, based on previous contracts, including last year’s agreement for 24 naval Rafale jets.

Indigenous Production to Boost Domestic Industry
The deal will include local manufacturing of Rafale fuselages in India, providing a major boost to the country’s defence industrial base. In June last year, Tata Advanced Systems Limited (TASL) signed an agreement with Dassault Aviation to produce Rafale fuselage components domestically. TASL is establishing a dedicated facility in Hyderabad, which will produce four major fuselage sections annually, catering to both Indian requirements and global orders. Production is expected to commence by FY 2028, with an annual capacity of 24 fuselages.

Sources further indicate that ongoing projects—including engine manufacturing units in Hyderabad and the Maintenance, Repair, and Overhaul (MRO) hub in Jewar, Uttar Pradesh—could contribute to 60% of the Rafale’s manufacturing value being generated within India.

This strategic deal is expected to enhance India’s air combat capabilities while significantly boosting domestic defence manufacturing and technology transfer.