The Indian Air Force (IAF) has put forward a proposal to acquire 114 additional Dassault Rafale fighter jets, valued at over ₹2 lakh crore ($22 billion), which would mark the biggest defence deal in India's history if approved.

This potential purchase could see India’s Rafale fleet grow to 176 jets, combining current IAF holdings of 36 aircraft and the Indian Navy’s order of 26 Rafale-M naval fighters.​​

India and France have deepened their aerospace partnership with Dassault Aviation agreeing to manufacture Rafale fighter jet fuselages in India for the first time globally.

TATA Advanced Systems Limited (TASL) is spearheading this effort from a dedicated facility in Hyderabad, set to roll out initial fuselage sections by fiscal year 2028, with the capability to produce up to two complete fuselages per month.

This move marks a pivot from simple assembly to critical structural manufacturing in India, supporting both the domestic fleet and potential exports, positioning India as a key node in Rafale's global supply chain.​

The current production rate of Rafales in France has increased from 2 to 3 jets monthly, with plans to rise to 4 per month to address the growing backlog. The production expansion is handled at Dassault’s Mérignac and Cergy-Pontoise facilities, but with the Indian manufacturing line coming online, India could emerge as a major Rafale assembly and production hub globally, reducing costs and accelerating delivery schedules.​

MoD has the proposal under serious consideration, with the Defence Procurement Board likely to discuss it soon. A “Make in India” content threshold of over 60 percent is targeted, with Dassault having already established maintenance, repair, and overhaul (MRO) operations in Hyderabad for M-88 engines, and plans are underway to localise further parts production.​​

Strategic Imperatives Underpinning the Rafale Push:

The IAF is currently operating 29 fighter squadrons, well below the sanctioned strength of 42.5, creating urgency to augment air combat capabilities amidst regional threats from China and Pakistan.​

Older aircraft like MiG-21s have been phased out, and strike platforms like Jaguars will gradually retire, increasing reliance on the Su-30MKI, Rafale, and future indigenous fighters like LCA and AMCA.​

Acquiring more Rafales maintains logistical and operational continuity, minimising diversification of fleets and associated complexities.​

In addition to the fighter jets, India benefits from technology transfers in aviation engine development. The joint Safran-GTRE (a DRDO lab) collaboration is aimed at developing a 120kN engine with Indian intellectual property rights, eventually powering India’s indigenous Advanced Medium Combat Aircraft (AMCA).

This project involves extensive tech sharing and production partnerships with Indian private sector companies, representing a major step forward in India’s aero engine autonomy.​

The Rafale’s technical pedigree is substantial. It is a 4.5 generation twin-engine multi-role omni-role fighter with advanced avionics, stealth features, and an integrated SPECTRA electronic warfare suite. Indian Rafales include IAF-specific enhancements such as Israeli helmet-mounted displays and electronics suites. The aircraft has active combat experience across multiple theatres, bolstering its tested operational credibility.​​

Ukraine also recently signed a letter of intent with France to acquire up to 100 Rafale jets over the next decade to strengthen its air defence amid ongoing conflict with Russia. This highlights the Rafale’s rising global demand and production pressure.​

The deep-rooted India-France aerospace relationship goes back decades, with India having operated multiple French-origin aircraft and jointly developed aero engines.

The current Rafale indigenisation initiative is the most extensive yet, potentially creating thousands of jobs and transforming India into a regional maintenance and production hub for these fighters.​

Should India proceed with the acquisition and underwrite the local production of 114 Rafale jets, it will cement its status not only as a major global operator but also as a pivotal manufacturing and support centre for this frontline fighter platform.

It represents a strategic, economic, and technological leap forward for India’s defence aerospace sector backed by a historically strong bilateral relationship with France.​​

IDN (With Agency Inputs)