India is currently engaged in high-level negotiations with France over the procurement of 114 additional Rafale fighter jets for the Indian Air Force (IAF).

These talks, expected to span the next two to three days, centre on establishing firm conditions for Dassault Aviation, the manufacturer. Key demands include transfer of technology (ToT) and the full integration of Indian weapons systems.

Should the deal materialise, it would be valued at approximately ₹3.25 lakh crore, marking India's most substantial defence acquisition to date.

With these 114 jets, India's Rafale fleet would total 176 aircraft. The IAF already operates 36 Rafales, while the Indian Navy has placed an order for 26 Rafale-M variants destined for INS Vikrant.

India has outlined several non-negotiable clauses. These encompass the integration of indigenous weapons, missiles, and ammunition across all 114 jets, as reported by The Tribune. Dassault must also supply secure data links to enable seamless digital connectivity with Indian radars and sensors, facilitating the transmission of imagery to ground-based controllers.

Notably, the source codes will remain under French control. Upon acceptance, Dassault will integrate a unified command system for weapons management and data exchange. This necessitates modifications to the onboard computing system's software.

Sources indicate that ToT will extend to airframe production. Suppliers such as engine manufacturer Safran and avionics provider Thales will participate in this process. Consequently, indigenous content in the jets is projected to reach 55 to 60 per cent following ToT for airframes, engines, and avionics.

Rafale avionics, weapons, and missiles have seen significant upgrades since the IAF's 2015 order for 36 aircraft. The IAF currently flies the F3R standard, aligned with the French Air Force's configuration. Dassault has since rolled out the enhanced F4 version, with India pursuing a blend of F4 and the forthcoming F5 variants.

Upgrades in the newer standards feature next-generation active electronically scanned array (AESA) radars, offering extended detection ranges and greater resilience against electronic warfare. Enhanced self-protection systems will detect and neutralise emerging threats. These improvements support superior long-range threat identification, paired with missiles of increased reach.

Further enhancements include advanced satellite links and artificial intelligence algorithms. These will aid pilots with heightened situational awareness and faster decision-making. The Ministry of Defence aims to seal this $8 billion agreement to address critical shortfalls in air combat capabilities, pending approval from the Cabinet Committee on Security (CCS).

The procurement falls under the 'Make in India' initiative, with Dassault partnering with an Indian entity. In September 2025, Dassault raised its stake in Dassault Reliance Aerospace Limited (DRAL) to 51 per cent, establishing it as a majority-owned subsidiary. Reliance Infrastructure, led by Anil Ambani, remains a key partner in DRAL.

Of the 114 jets, 12 to 18 are anticipated to be delivered in fly-away condition. The balance will be manufactured domestically. A dedicated Rafale flight training and maintenance, repair, and overhaul (MRO) facility is already operational at Air Force Station Ambala.

French engine maker Safran inaugurated an MRO hub for its engines in Hyderabad in June 2025. This bolsters India's sustainment infrastructure for the fleet. The IAF faces acute operational pressures, with squadron strength dwindled to 29 against a sanctioned total of 42.

To mitigate this, the IAF has ordered 180 TEJAS MK-1A jets from Hindustan Aeronautics Limited (HAL).

Looking ahead, plans include inducting an indigenously developed fifth-generation fighter after 2035. This mega Rafale deal thus represents a pivotal step in modernising India's air power while advancing self-reliance in defence manufacturing.

Agencies