India and France stand on the brink of sealing a landmark deal for additional Rafale fighter jets, aimed at addressing critical shortages in the Indian Air Force's (IAF) combat inventory, reported Manu Pubby of TOI.

Negotiations have gained momentum ahead of French President Emmanuel Macron's anticipated visit to India next month, with sources indicating that a government-to-government pact could soon materialise.

The IAF has formally proposed the procurement of a substantial number of these advanced multirole fighters, projecting a minimum requirement of 114 modern combat aircraft to bolster its depleting squadron strength. This initiative underscores New Delhi's urgency to modernise its air power amid evolving regional threats.

The deal's structure emphasises indigenous manufacturing, promising to infuse cutting-edge technologies into India's defence industrial base. A government-to-government framework would streamline approvals, bypassing some procedural hurdles associated with traditional tenders.

Procurement will necessitate sequential clearances: first from the Defence Acquisition Council, followed by rigorous cost negotiations, and culminating in endorsement by the Cabinet Committee on Security. Budgetary allocations in the upcoming annual plan will prove pivotal to unlocking funds for this multi-billion-euro venture.

India already benefits from a price benchmark established last year through a contract for 24 Rafale Marine variants for the Navy, valued at approximately €7.4 billion. This precedent will anchor pricing discussions for the larger order, potentially encompassing tens of billions of euros.

Domestic production forms the cornerstone of the agreement. In June 2025, Tata Advanced Systems Limited (TASL) inked pivotal pacts with Dassault Aviation to fabricate key Rafale fuselage components in India, marking a leap towards self-reliance.

TASL is constructing a state-of-the-art facility in Hyderabad, tailored to produce four primary fuselage sections not only for Indian needs but also for Dassault's global export orders. The plant targets initial deliveries by fiscal year 2028, with an annual capacity of 24 fuselages.

Complementary initiatives amplify localisation prospects. An engine manufacturing plant is under development in Hyderabad, while a Maintenance, Repair, and Overhaul (MRO) hub takes shape at Jewar in Uttar Pradesh. Together, these could localise up to 60% of Rafale production value within India.

This push aligns with India's Atmanirbhar Bharat vision in defence, fostering technology transfer and skill enhancement across the aerospace ecosystem. Local fuselages, engines, and MRO capabilities will reduce import dependence and generate high-skill jobs.

For the IAF, additional Rafales promise immediate operational relief. Currently operating 36 Rafale jets from the 2016 deal, the force grapples with squadron numbers dipping below 30 amid retirements of ageing MiG-21s and Mirage-2000s.

The jets' proven prowess in precision strikes, electronic warfare, and beyond-visual-range combat makes them ideal for India's two-front challenges posed by China and Pakistan. Integration with indigenous weapons like Astra missiles further enhances their appeal.

Geopolitically, deepening Franco-Indian ties via Rafale offsets reliance on Russian platforms, diversifying supply chains amid global tensions. France's reliability as a partner, evidenced by timely deliveries, contrasts with delays in other programmes.

Economically, the deal could catalyse a ripple effect. TASL's Hyderabad venture alone may spawn ancillary industries, from advanced composites to avionics, positioning India as a Rafale export hub.

Challenges persist, however. Finalising numbers—potentially 114 or more—hinges on fiscal prudence and offsetting obligations. Ensuring full technology transfer remains a sticking point in talks. Macron's visit could catalyse breakthroughs, possibly unveiling the Acceptance of Necessity (AoN) or initialling the pact. This would reaffirm strategic convergence between the Quad partners.

In the broader canvas, Rafale's induction supports IAF's roadmap towards 42 squadrons by 2035, complementing indigenous projects like TEJAS MK-2 and Advanced Medium Combat Aircraft (AMCA).

This mega deal not only plugs capability gaps but cements India-France defence synergy, propelling the nation's aerospace ambitions skyward.

Based On ET News Report