The procurement plan for 114 multi-role fighter aircraft (MRFA) intended for the Indian Air Force (IAF) has encountered a setback as the Ministry of Defence (MoD) has returned the IAF’s Statement of Case, labeling it as “incomplete.” The ministry has requested further clarification on critical aspects such as local manufacturing, indigenisation, and industry partnerships before the procurement process can proceed.
Officials from the MoD have emphasized that the proposal should align with the government’s Atmanirbhar Bharat vision, indicating a preference for local production over a simple purchase of aircraft. The Rafale fighter, produced by France’s Dassault Aviation, continues to be a strong candidate due to its proven performance with the IAF’s current fleet of 36 aircraft. However, the MoD has expressed concerns about the lack of detailed projections regarding manufacturing scale, localization targets, and private-sector participation in the IAF’s submission.
The Ministry has mandated that the majority of the 114 aircraft be manufactured in India, with only a limited number delivered in ready-to-fly condition. As part of this requirement, Dassault is now expected to submit a revised proposal that includes commitments related to local assembly, supply-chain partnerships, and mechanisms for knowledge transfer.
Moreover, the MoD has set an ambitious target for indigenisation levels to reach approximately 75%, a substantial increase compared to nominal offsets in previous defense contracts. This benchmark aims to facilitate job creation, develop the defense ecosystem, and bolster domestic capabilities across both public and private sectors in the defense industry.
In response to these requirements, sources indicate that Dassault Aviation has suggested establishing a maintenance, repair, and overhaul (MRO) hub in Hyderabad, which would act as a regional center for lifecycle support and logistics. While this proposal has met with a favorable initial response, the Ministry remains cautious and seeks concrete assurances regarding technology sharing, supply-chain integration, and accountability related to costs.
This new procurement initiative is distinct from the earlier government-to-government deal involving 36 Rafale jets and is framed as a competitive commercial acquisition under the MRFA umbrella. However, unresolved issues such as production liability, delivery timelines, and pricing risks have reemerged as the review progresses.
The IAF is currently grappling with a significant shortfall in squadron strength, operating roughly 30 squadrons instead of the sanctioned 42. With fleets like the Jaguar and MiG-29 approaching the end of their operational lives, the need for the induction of new-generation fighters is pressing.
Despite HAL’s plans to deliver 180 units of the Tejas Mk-1A by 2033, defense experts argue that a medium-weight, multi-role platform is crucial to address existing capability gaps and maintain aerial deterrence.
As the procurement process unfolds, the Rafale and Eurofighter Typhoon remain the leading competitors in the MRFA bid following extensive technical evaluations. The recent involvement of the Defence Ministry signifies a crucial shift in policy, emphasizing domestic production and industrial collaboration alongside combat readiness.
The upcoming months will be pivotal as Dassault and the IAF strive to revamp the proposal. The final outcome will shape the prospects of the deal evolving into a strategic manufacturing partnership that could strengthen India’s aerospace industry or face further delays amid tightening financial and operational constraints.
