France has formally submitted its final technical and commercial proposal for India’s ₹3.25 lakh crore Rafale fighter jet acquisition, marking a decisive step toward contract signing, Manu Pubby of Economic Times reported.

The deal will see 94 jets manufactured in India with sovereign guarantees, technology transfer, and indigenous weapons integration, while 20 aircraft will be delivered directly from France to meet urgent operational needs.

India’s plan to acquire 114 Rafale fighter jets for the Air Force has advanced significantly with France’s submission of detailed proposals in response to the Letter of Request issued in May. The government-to-government deal, valued at approximately ₹3.25 lakh crore, will include sovereign guarantees and extensive technology transfer. The proposals are now under review by the Defence Ministry’s Acquisition Wing and the Indian Air Force.

Under the French offer, 94 Rafale jets will be manufactured in India by Dassault Aviation in partnership with local companies. This will establish a full-fledged fighter aircraft production line in India, with indigenous content expected to rise to at least 50 per cent over time.

Dassault will lead localisation efforts, supported by Safran for engines, Thales for avionics, and MBDA for weapons systems. Indian companies such as Tata Advanced Systems Ltd, which already has an agreement with Dassault to manufacture fuselage and major components, are expected to secure a significant share of the work.

To meet immediate operational requirements, 20 aircraft will be delivered in flyaway condition from France. These will add to the 36 Rafale fighters already in service with the Air Force and the 26 naval variants ordered by the Indian Navy.

The Navy is also considering acquiring more than 30 additional Rafale jets for carrier operations as its MiG-29K fleet approaches retirement. This would take India’s Rafale fleet to well over 200 aircraft, making it one of the largest operators globally.

The project marks the first time Rafale jets will be produced outside France, with technology transfer enabling India to integrate indigenous systems. India has insisted on the inclusion of local weapons such as the Astra beyond-visual-range missile and the BrahMos-NG cruise missile. Secure data links for integration with Indian radars and command networks are also part of the requirements. French officials have indicated readiness to accommodate these demands, including access to source codes for indigenous integration.

The Defence Ministry is expected to begin several rounds of negotiations by late August or early September to finalise technology commitments and pricing. Once the Defence Ministry accepts the final offer, the proposal will be sent to the Cabinet Committee on Security for approval. A formal Letter of Acceptance will then be issued to France, completing the procurement process. The aim is to sign the agreement within this financial year.

The Rafale acquisition is critical for the Indian Air Force, which currently operates only 29 squadrons against a sanctioned strength of 42.5. The retirement of ageing MiG aircraft and delays in indigenous platforms such as the TEJAS MK-1A and MK-2 have created a capability gap. The Rafale deal is seen as the fastest route to restoring squadron strength and ensuring readiness for a potential two-front scenario against China and Pakistan, both of which are inducting advanced fighters.

The deal is also expected to generate opportunities worth around ₹1.6 lakh crore for Indian industry, including Tata, Larsen & Toubro, and other defence manufacturers. It is being viewed as a landmark in India’s defence manufacturing ambitions, combining industrial growth with strategic autonomy.

The Rafale’s proven combat record, including its decisive role in Operation Sindoor against terror launchpads in Pakistan, has further strengthened its case as India’s frontline fighter.

Agencies