India and France are currently engaged in deepening negotiations regarding a substantial deal for the procurement of Rafale fighter jets for the Indian Air Force (IAF). This initiative comes ahead of French President Emmanuel Macron’s anticipated visit to India in February.
In September, the IAF formally submitted a proposal to the Indian Ministry of Defence (MoD) to acquire 114 Rafale fighters, estimated to cost around 200 billion Indian rupees, approximately $22 billion. This request arises under the Multirole Fighter Aircraft requirement, highlighting an urgent need for enhancing India’s aerial capabilities.
However, the MoD has expressed the need for further clarification, particularly regarding industrial participation and local manufacturing arrangements. Key concerns include the desired level of indigenous content in the upcoming aircraft. Reports suggest that it is still uncertain whether a revised proposal has been put forward, but there are indications that the initiative may advance as President Macron’s visit approaches.
Once the proposal receives approval from the Defence Acquisition Council, negotiations on the deal’s price will commence, ultimately requiring ratification from the Cabinet Committee on Security.
This proposed government-to-government acquisition has the potential to significantly enlarge the IAF’s Rafale fleet, which currently consists of 36 aircraft ordered in 2016, and is operated by squadrons based in Ambala and Hasimara. The expansion comes at a critical juncture, as the IAF has seen a reduction in its fighter inventory due to the recent retirements of MiG-21 aircraft and delays in the rollout of the indigenous Tejas Mark 1A fighter.
The MoD is reportedly advocating for an increase in indigenous content, aiming for 75 percent or more—up from a previously suggested 60 percent. This push aligns with India’s “Make in India” initiative, which emphasizes defense indigenization. Furthermore, the ministry is expected to insist on the establishment of domestic manufacturing capabilities, where the Rafale jets will be produced in India in collaboration with Dassault Aviation and an Indian defense partner.
In a significant development last year, Tata Advanced Systems partnered with Dassault Aviation to produce Rafale fuselage sections within India. Additionally, plans are underway to establish a manufacturing facility for engines and a maintenance, repair, and overhaul center to support the aircraft’s operations in the country.
Furthermore, the MoD has sought clarification regarding liability for potential production delays that could arise if the jets are manufactured domestically—an issue that has previously hindered discussions between the IAF and Dassault Aviation. As negotiations progress, the potential for ramping up India’s defense capabilities with local manufacturing remains a focal point amidst growing geopolitical considerations.
