
To secure an order for 114 additional Rafale fighter jets, Safran has made a ground breaking concession: the assembly of the aircraft's M88 engine will now take place in India.
This marks a historic shift, as Paris had previously refused such arrangements with any partner nation.
The developments unfolding between Paris and New Delhi in Feb 2026 transcend a mere defence procurement deal. Safran's agreement to assemble the M88 engine alongside Hindustan Aeronautics Limited (HAL) in India represents a profound transfer of industrial know-how, breaching long-held barriers in high-technology sectors.
India's defence sector is witnessing a transformative phase with the push to localise the assembly and overhaul of Rafale fighter jet engines. The M88 engines, powering the Dassault Rafale, are at the heart of this initiative. Safran, the French manufacturer, has pledged to establish an engine assembly line within India, marking a significant step towards self-reliance in military aviation.
India has evolved from a passive purchaser into a assertive negotiator. With the prospective acquisition of 114 more Rafales—elevating the total fleet aspiration to 330 aircraft—New Delhi now mandates local manufacturing as a non-negotiable prerequisite. The "Make in India" initiative has matured from a domestic policy slogan into an ironclad condition for market access, compelling even entrenched suppliers to comply.
Safran recognised this paradigm shift ahead of many peers. The late November 2025 inauguration of its 45,000-square-metre Maintenance, Repair, and Overhaul (MRO) facility in Hyderabad signalled an initial pivot. Yet MRO operations safeguard core secrets far less rigorously than full engine assembly, which demands exposure of proprietary processes.
Safran's strategic calculus is straightforward yet far-reaching. The company's 2025 financials were robust, boasting nearly 15 per cent revenue growth and record engine deliveries. However, the true imperative lies in future prospects: a targeted €3 billion in Indian revenue by 2030. Rejecting technology transfer risks permanent exclusion from this burgeoning market; embracing it fosters enduring interdependence that outlasts any contract.
This decision upends a longstanding, unspoken protocol in the sector: design at Safran's Villaroche facility in France, maintenance permissible abroad, but assembly strictly off-limits elsewhere. Geopolitical imperatives have overridden these traditions.
At its core, this industrial alignment reflects a broader strategic synergy between France and India, both driven by a quest for autonomy. For New Delhi, Paris offers a reliable counterweight to a reticent Washington—unwilling to share advanced propulsion technologies—and an increasingly adversarial Beijing, whose actions now underpin India's entire defence posture.
Accelerating talks surround the powerplant for India's Advanced Medium Combat Aircraft (AMCA), the nation's forthcoming stealth fighter. France proposes collaborative design of a 110 kN-class engine, where the United States imposes stringent caveats. The gamble is evident: nurturing a potential rival. Yet, for French stakeholders, unlocking the world's most dynamic defence market over the next decades outweighs such perils.
A pivotal question lingers regarding India's capacity to assimilate these transfers without compromising quality. The ambition is audacious: by 2035, the Hyderabad facility aims to handle 300 engines annually, transforming India from a peripheral consumer into a pivotal hub within the global aeronautical supply chain.
Safran is not merely offshoring production; it is strategically duplicating capabilities in a region where geopolitical influence is realigning. In today's multipolar landscape, an industrial powerhouse's resilience hinges less on hoarding secrets and more on cultivating dense, reciprocal ties with ascending economies like India's.
This partnership could catalyse wider ripple effects. For HAL, it bolsters expertise in aero-engine manufacturing, a domain long dominated by foreign monopolies. Indian engineers will gain hands-on mastery of hot-section technologies, blade forging, and turbine integration—skills transferable to indigenous projects like the Kaveri engine revival.
From a procurement standpoint, the 114-Rafale deal aligns with India's multi-engine fleet strategy, diversifying beyond Su-30MKIs and TEJAS while enhancing interoperability with French naval assets. Local M88 assembly promises cost efficiencies, with offsets potentially exceeding 70 per cent of contract value, fuelling "Make in India" multipliers across MSMEs.
The Franco-Indian axis gains momentum amid Indo-Pacific tensions. France's Indian Ocean territories and joint exercises like Varuna underscore shared stakes against Chinese expansionism. Engine co-development for AMCA could pave the way for 5th-generation tech sharing, positioning India as a co-equal partner rather than a mere licensee.
Challenges persist, however. Technology absorption demands robust quality controls, skilled workforce upskilling, and safeguards against IP leakage. Safran's phased rollout—beginning with final assembly before progressing to module production—mitigates risks, but success hinges on HAL's execution amid its stretched order book.
Safran’s commitment extends to sourcing components from Indian suppliers. This includes critical parts like turbine blades and casings, potentially involving firms such as Tata Advanced Systems or Bharat Forge. Such partnerships could generate thousands of jobs and bolster India's aerospace supply chain.
The M88 engine, a twin-spool turbofan, delivers 75 kilonewtons of thrust with afterburner. Its reliability has been proven in combat by French and other air forces. Assembling it in India would allow for technology transfer, enabling local engineers to master advanced propulsion techniques.
Overhaul facilities are equally vital. Currently, engines require shipment to France for maintenance, causing delays. An Indian overhaul line would ensure faster turnaround, vital for the IAF's squadron strength amid border tensions with China and Pakistan.
Discussions gained momentum during French President Emmanuel Macron's 2023 visit to India. Bilateral talks under the Rafale Marine deal for the Navy further underscored engine localisation. Safran aims to operationalise the assembly line by 2028, pending government approvals.
High-precision manufacturing demands skilled labour and infrastructure. Safran must navigate intellectual property concerns while transferring know-how. Indian offsets under defence procurement rules mandate 30-50% localisation, which this project fulfils.
The venture promises substantial gains. Engine assembly could save India up to 20% on procurement costs long-term. Local sourcing might inject ₹5,000 crore annually into the economy, fostering a vibrant MRO (maintenance, repair, and overhaul) ecosystem.
This mirrors global trends where nations like the US and UK maintain domestic engine lines for fighters like the F-35 and Typhoon. For India, it positions the country as a regional hub for aerospace manufacturing, attracting investments from Boeing and Lockheed Martin.
Deeper Franco-Indian ties counterbalance China's J-20 fleet and Pakistan's J-10Cs. Reliable engine supply chains ensure the Rafale's edge in beyond-visual-range combat, with its Meteor missiles and Spectra suite.
Private sector involvement accelerates progress. Hindustan Aeronautics Limited (HAL) could integrate M88 overhauls with its Rafale production role. DRDO's Kaveri engine program might benefit from Safran's expertise, bridging gaps in indigenous turbofan development.
Training programs form a cornerstone. Safran plans to skill 500 Indian technicians initially, expanding to 2,000. Institutes like IITs and the Indian Institute of Science will collaborate, building a talent pool for next-gen engines.
Critics highlight risks of over-reliance on one supplier. Diversification via GE's F414 for TEJAS MK-2 remains crucial. Yet, Safran's track record instils confidence. The M88 push exemplifies strategic indigenisation. It fortifies India's aerial defences while nurturing a world-class aerospace industry.
IDN (With Agency Inputs)












