India’s Defence Procurement Board (DPB) has approved the Indian Air Force’s (IAF) proposal to acquire 114 Dassault Rafale fighter jets, potentially marking the largest defence deal between New Delhi and Paris.

Valued at approximately $35 billion, or ₹3.25 lakh crore, this procurement underscores a strategic pivot towards operational certainty amid pressing regional threats.

The DPB, positioned just below the Defence Acquisition Council (DAC) in the Ministry of Defence hierarchy, vets such proposals before they advance to the DAC for Acceptance of Necessity (AoN).

This AoN would kick off negotiations, historically a drawn-out affair involving requests for proposals, field trials, and Cabinet Committee on Security approval.

Yet, the IAF’s direct nomination of Rafale could streamline the process by sidestepping competitive bidding and trials, focusing instead on government-to-government terms.

Regional security dynamics drive this urgency. A recent skirmish with the Pakistan Air Force, coupled with a modernising Bangladesh Air Force and the formidable People’s Liberation Army Air Force along the northern border, leaves little room for delays. The IAF, operating at critically low squadron strengths, prioritises proven platforms over developmental risks.

Critics highlight the trade-off with indigenous programmes like the TEJAS MK-2 and Advanced Medium Combat Aircraft (AMCA), which demand funding and time. Russia’s Su-57 offer, with promises of extensive localisation, presents an alternative, yet the IAF favours Rafale’s battle-tested reliability from prior operations against contemporary threats. This choice reflects a doctrine of consolidating familiar fleets, logistics, and tactics.

Localisation remains a key negotiation point. Plans include 12-18 flyaway jets for immediate needs, with the balance manufactured in India via partnerships like Tata Advanced Systems and Dassault, targeting 30% indigenous content initially.

Further facilities for engines in Hyderabad and maintenance in Uttar Pradesh could elevate this to 60%, aligning with Atmanirbhar Bharat goals, though source code access for weapons integration stays contentious.

The deal builds on existing Rafale integration—36 jets already serve the IAF, with 26 naval variants ordered—enabling shared maintenance and upgrades. Over time, this could foster deeper domestic production, but short-term war fighting needs trump full indigenisation.

Should the DAC and CCS approve, pricing, offsets, and integration rights will test negotiations. Dassault’s majority stake in Dassault Reliance Aerospace signals commitment, yet India pushes for enhanced technology transfer.

IDN (With Agency Inputs)