The Indian Air Force has formally demanded that the 96 Rafale F4 fighters to be manufactured in India under the ₹3.25 lakh crore deal must begin with at least 40 percent indigenous content, rising to 60 percent in the final batch, The Print reported.

Dassault Aviation, already partnered with TATA Advanced Systems for fuselage production, is scouting for an Indian partner to produce wings, while Thales and BEL are expanding cooperation on radar and electronic warfare systems to meet localisation targets.

The Letter of Request was issued to France in late May, with Paris expected to respond by September. This document initiates the government-to-government procurement process, bypassing commercial tendering.

Of the 114 aircraft, 18 will be delivered in flyaway condition from France, while 96 will be built in India. The IAF insists that the first Indian-assembled Rafale must have at least 40 percent local content, progressively increasing to 60 percent by the final batch.

Dassault has already outsourced fuselage production to Tata Advanced Systems, with a new Hyderabad facility expected to deliver complete fuselages by 2028. The company is now seeking an Indian partner for wing manufacturing, which would mark another milestone in shifting critical aerostructure production to India. In addition, several Indian firms have been contracted to produce Line Replaceable Units and components, further boosting localisation.

Thales has deepened its partnership with Bharat Electronics Limited. BEL has already delivered over 7,000 transmit/receive modules for the Rafale’s RBE2 AESA radar, and cooperation has expanded to advanced microwave modules for the SPECTRA electronic warfare suite.

Thales has also awarded contracts to Indian firms such as SFO Technologies for complex radar wiring structures, embedding India into the Rafale’s global supply chain. These steps are expected to push indigenous content beyond 40 percent in the early production phase.

Dassault has assured that with the planned Maintenance, Repair and Overhaul facility in India, overall indigenisation could reach 80 percent when factoring in lifecycle support. This would make India the first country outside France to host full-scale Rafale production and sustainment, a major boost to the aerospace ecosystem.

The deal is unlikely to exceed the earmarked ₹3.25 lakh crore budget. Deliveries of the first 18 flyaway aircraft are expected to begin around 2030 if the contract is signed by early 2027.

The Rafale F4 standard being acquired will introduce enhanced connectivity through satellite and intra-flight links, upgraded communications servers, and software radios, enabling more effective network-centric warfare. India’s existing Rafale fleet will also be upgraded from the F3-R to the F4 configuration.

Strategically, this acquisition is critical to bridging the IAF’s squadron shortfall, with current strength at 29 squadrons against a sanctioned 42.5.

The Rafale F4 will provide advanced multirole capabilities to counter threats from China’s J‑20 and Pakistan’s expected induction of the J‑35. Indigenous projects such as the TEJAS MK-2 and AMCA remain years away from maturity, making the Rafale deal the fastest route to restoring combat parity.

The localisation push aligns with India’s broader “Make in India” and “Atmanirbhar Bharat” initiatives. By embedding co-development, co-design, and co-production into the Rafale program, India is moving from a buyer-seller dynamic to a strategic industrial partnership with France.

This will not only strengthen bilateral defence ties but also create thousands of skilled jobs and position India as a global hub for Rafale production and sustainment.

Agencies