The Ministry of Defence (MoD) has returned the Indian Air Force's (IAF) proposal for acquiring 114 Multi-Role Fighter Aircraft (MRFA), deeming it "incomplete" due to insufficient detail on domestic manufacturing plans.

The MoD insists the proposal must align with the government's Atmanirbhar Bharat policy, demanding a minimum of 75% indigenous content in the procurement, a significant increase from previous deals that had about 30% in fly-away Rafales.​

This policy shift marks a strategic push towards bolstering India’s defence manufacturing ecosystem rather than a simple acquisition.

The new directive requires the majority of the jets to be produced in India, with only a small initial batch allowed as "fly-away" units. Dassault Aviation, the French manufacturer of the Rafale fighter and the frontrunner for the contract, must now commit to local assembly, supply-chain integration, technology transfer, and partnerships with Indian firms like HAL or private sector giants such as Tata or Adani.​

The MRFA deal, valued at over ₹2 lakh crore, is poised to be the largest defence procurement in India’s history. It complements the existing fleet of 36 Rafales already inducted by the IAF, and 26 marine variants ordered for the Indian Navy.

Integrating these jets with over 100 Indian suppliers and MSMEs across public and private sectors is expected to generate significant job creation and industrial growth.​

This multi-role fighter acquisition is critical for the IAF, as it faces a severe depletion in squadron strength, currently operating at 30 against a sanctioned 42.

The 114 jets are planned to replace ageing MiG-21s and Jaguars and fill the capability gap for a medium-weight fighter. While the indigenous TEJAS MK-1A is being inducted, it only serves as a light combat aircraft; the MRFA will be pivotal in maintaining a balanced combat force alongside Su-30MKIs and future indigenous fifth-generation fighters.​

The MoD's insistence on higher indigenisation elevates the scale of domestic manufacturing and technology development. The defence ministry seeks substantial private sector participation, extensive localisation of components, and a clear manufacturing roadmap before approving the deal.

This approach broadly aims to foster India’s aerospace industry ecosystem and reduce dependence on foreign vendors over the long term.​

In conclusion, the Defence Ministry's stance heralds a new phase in India's defence procurement, underscoring self-reliance and industrial growth.

The Indian Air Force’s MRFA deal with Dassault Aviation is not merely a purchase but also a significant indigenous manufacturing initiative, requiring at least 75% domestic content and wide-scale collaboration with Indian industry.​

IDN (With Agency Inputs)