Why India is Betting $39 Billion on “Made-in-India” Rafale Jets

India is set to acquire 114 Rafale fighter jets from France, with a landmark condition that 80% of the aircraft will be manufactured in India. This deal, likely to be finalized during French President Emmanuel Macron’s visit to India, aims to boost India’s air power while promoting domestic defense production. India’s Navy has already signed a contract for 24 Rafale jets.

Self-Reliance in Defense Manufacturing
The centerpiece of the $39 billion deal is local production. Indian authorities are negotiating with French officials to ensure that maintenance, repair, and overhaul (MRO) facilities are established in India. This would allow India to service, upgrade, and repair the aircraft domestically, eliminating dependence on France during critical times.

Sources indicate that once components of the Rafale jets begin to be produced in India, French aerospace giant Dassault Aviation may use Indian companies for exports to other countries operating Rafale and other Dassault aircraft. Recently, Thales, a leading French defense and aerospace company, awarded an Indian firm the contract to manufacture key parts of the Active Electronically Scanned Array (AESA) radar used in Rafale jets.

Strategic Advantages of Indigenous Production
The “Make-in-India” focus is intended to maximize self-reliance. Domestic manufacturing of parts ensures faster repair times, reduced costs, and maximum aircraft availability during wartime. Moreover, it prevents any foreign pressure or dependency in case of conflict. By contrast, American defense deals often include conditions that allow the U.S. to restrict or even remotely disable fighter jets if used against countries it disapproves of. By localizing production, India sidesteps such vulnerabilities, which experts describe as a strategic masterstroke by the government.

Next Steps and Naval Acquisition
Formal approval from the Defence Acquisition Council is still pending for the Air Force purchase of 114 jets. Following approval, price negotiations will take place, with final clearance from the Cabinet Committee on Security (CCS). India has already signed a contract with France for 24 Rafale jets for the Navy last year.

Rafale jets, with a 90% operational availability, are seen as highly capable and suitable to strengthen India’s air defense, even surpassing several top-tier fighter jets, including the American F-35. Negotiations for upgraded versions continue, reflecting India’s commitment to a powerful, self-reliant, and strategically independent air force.