The answer is Yes, Dassault Aviation has committed to manufacturing Rafale fighter jets in India as part of an ambitious 'Make in India' initiative. This represents a historic shift in the French aerospace major's production model and marks a significant step towards India's goal of self-reliance in defence manufacturing under the Atmanirbhar Bharat framework.

France's Strategic Commitment To Manufacturing

French Ambassador Thierry Mathou articulated France's eagerness to establish Rafale production in India, stating that the country's industry is "totally in the mood of Make in India."

During discussions with ThePrint, Mathou emphasised that France is "very eager, not only to sell the Rafale, but to build the Rafale in India," signalling a departure from traditional defence export models where manufacturing remains concentrated in France.

This commitment reflects France's understanding of India's strategic imperative for domestic production and its alignment with India's broader defence self-reliance agenda.​

The offer comes at a critical juncture, as India currently operates approximately 31 fighter squadrons against a sanctioned requirement of 42, creating a significant capability gap. France has demonstrated its willingness to address this need through local manufacturing rather than merely supplying fly-away kits.​

The 114 Rafale Procurement Initiative

The Indian Air Force has proposed acquiring 114 additional Rafale fighter jets under a proposal worth over ₹2 lakh crore (approximately USD 23 billion), with an estimated 60% indigenous content. This mega-deal, currently under review by India's Defence Ministry, would establish the largest defence procurement contract in Indian history if approved. The Defence Procurement Board, headed by the Defence Secretary, is expected to deliberate on this proposal in the coming weeks, after which it will proceed to the Defence Acquisition Council for final approval.​

If executed, India's total Rafale fleet would expand to 176 aircraft, comprising the 36 already inducted by the Indian Air Force, the 26 ordered for the Indian Navy (signed in April 2025), and the proposed 114 aircraft. This would make India the largest operator of Rafale fighter jets outside France.​

Multi-Faceted Indigenous Manufacturing Ecosystem

Dassault's proposal encompasses a comprehensive approach to localising Rafale production across multiple dimensions.

In a landmark agreement signed in June 2025, TATA Advanced Systems Limited (TASL) has committed to manufacturing Rafale fuselages at a new facility in Hyderabad. This represents the first instance of Rafale fuselage production occurring outside France.

Under four Production Transfer Agreements with Dassault Aviation, TASL will produce critical structural components including the lateral shells of the rear fuselage, the complete rear section, the central fuselage, and the front section.

The facility is expected to commence production in fiscal year 2028, scaling up to deliver two complete fuselages monthly. This arrangement brings approximately 60% of the Rafale's manufacturing value to India through structural component production and associated technology transfer.​

Final Assembly Operations In Nagpur

Dassault Reliance Aerospace Limited (DRAL), a joint venture located in Nagpur's MIHAN Special Economic Zone, is positioned to handle final assembly of Rafale aircraft. Currently producing components such as wings and fuselage sections, DRAL is slated to scale up to integrated aircraft production, with plans for a manufacturing rate of two aircraft per month.

This facility would serve both Indian defence requirements and potentially handle export contracts, such as Indonesia's recent order for 42 Rafales.​

Engine Manufacturing And Maintenance

French engine manufacturer Safran is establishing facilities for assembling the M-88 engines in India. Furthermore, a dedicated Maintenance, Repair, and Overhaul (MRO) centre specifically for Rafale M-88 engines is expected to become operational in Hyderabad by late 2026, ensuring long-term operational sustainability across the entire Indian Rafale fleet.

This move addresses critical sustainability concerns and reduces operational costs by enabling domestic engine servicing without international dependencies.​

Indigenisation Targets And Strategic Considerations

The proposed 60% indigenous content represents a substantial commitment compared to typical defence transfer agreements. Dassault has already begun sourcing titanium parts from Indian companies and plans to expand the local vendor base further. However, strategic analysts have noted that while 60% indigenisation is significant, some defence experts argue that achieving at least 80% local content would be more strategically optimal for operational sovereignty and long-term cost efficiency.​

The Defence Ministry has subjected the initial proposal to rigorous scrutiny, explicitly rejecting token localisation levels of merely 10-15%, signalling a decisive shift in India's defence procurement philosophy. Officials have indicated that proposals lacking substantial domestic industrial participation would be deemed inconsistent with the Atmanirbharta Bharat initiative.​

The move follows the Rafale's demonstrated operational performance during Operation Sindoor against Pakistan, where the aircraft reportedly outmatched Chinese PL-15 air-to-air missiles through its advanced Spectra electronic warfare suite. The new batch of Rafales manufactured in India is expected to feature longer-range air-to-ground missiles than the Scalp missiles currently deployed.​

Additionally, French Ambassador Mathou indicated ongoing discussions between Safran and India's Defence Research and Development Organisation (DRDO) for joint designing and manufacturing of engines for the Advanced Medium Combat Aircraft (AMCA), India's fifth-generation indigenous fighter programme.

This convergence of initiatives—simultaneous Rafale localisation and indigenous engine development—reflects growing strategic alignment between France and India in establishing comprehensive aerospace manufacturing capabilities spanning propulsion systems, airframe assembly, and systems integration.​

Indo-French Defence Partnership Context

France has become one of India's largest defence suppliers, accounting for approximately 33% of India's military imports between 2019 and 2023, second only to Russia's 36%. This manufacturing initiative reflects the deepening strategic partnership between the two nations, built on a foundation of stable defence cooperation spanning decades. Unlike some suppliers, France maintains consistent licensing policies that provide assurance against disruptions, comparable to Russia's long-standing support since supplying the Toofani fighter in 1953.​

The proposal aligns with India's requirement to expand its fighter fleet whilst simultaneously developing indigenous aerospace manufacturing capabilities to support multiple future defence aviation programmes, including the HAL Tejas Mark II and the Advanced Medium Combat Aircraft (AMCA) fifth-generation fighter platform, currently not expected before the middle of the next decade.​

(Report synthesised from multiple news reports by ANI, The Print, The Week, and others dated November 4, 2025)