In a major step towards finalising one of the world’s largest defence procurement deals, France has submitted a detailed technical and commercial proposal to India for the acquisition of 114 Rafale multi-role fighter aircraft, valued at approximately Rs 3.25 lakh crore.
A cornerstone of the French proposal is the commitment to manufacture 94 out of the 114 Rafale jets in India in partnership with a domestic industry player, in line with the government’s ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives. This arrangement would see major French defence companies—including missile manufacturer MBDA, engine maker Safran, and defence electronics firm Thales—collaborating with Indian partners such as Tata Advanced Systems, Larsen & Toubro and others to execute the deal.
Defence sources told news agency ANI that the French response to India’s Letter of Request (LoR), issued in May 2026, is now being studied by the Acquisition Wing of the Defence Ministry and the IAF. The Indian side will closely examine the French offer on key demands, including the integration of indigenous weapons such as variants of the Astra air-to-air missiles, and the extent of indigenous content in the aircraft under the deal.
The deal is expected to generate business opportunities worth around Rs 1.6 lakh crore for Indian industry players, covering areas such as airframe production, engine assembly, avionics integration, and maintenance, repair and overhaul (MRO) facilities. According to reports, indigenous content in the aircraft is expected to range between 55 per cent and 60 per cent after the transfer of technology for airframes, engines and avionics is completed.
Under the proposed structure, around 20 aircraft are likely to be delivered in fly-away condition from France, while the remaining 94 fighters will be produced domestically through a joint venture or partnership model. This would mark the first time Rafale aircraft are manufactured outside France, representing a new phase in Indo-French defence cooperation based on co-development and industrial partnership rather than a traditional buyer-seller relationship.
From 36 to over 200: India’s Rafale ambition takes flight amid IAF aquadron crunch
The 114 Rafale jets are critical for addressing the Indian Air Force’s dwindling squadron strength, which has fallen below the sanctioned 42 squadrons due to the phased retirement of vintage Russian-origin MiG-21 and MiG-27 aircraft, as well as delays in the induction of indigenous platforms like the LCA Tejas Mark 1A and the upcoming Mark 2.
While the IAF and Indian Navy have already placed orders for 62 Rafale planes (36 for IAF in 2016 and 26 for Navy in 2024), the additional 114 aircraft will take the total Rafale fleet to 176. The Navy has also expressed intent to induct 31 more Rafales for maritime operations, potentially pushing the total number of Rafales in Indian service to over 200.
The Defence Acquisition Council (DAC) had granted Acceptance of Necessity (AoN) for the 114 Rafale jets under the MRFA programme in February 2026, around five months before France submitted its proposal. The Defence Ministry, under Defence Secretary Rajesh Kumar Singh, had carried out a major capability enhancement study for the IAF soon after he took charge in 2024, and the Rafale deal has been pursued in a focused manner since then.
Rs 3.25 lakh crore rafale bet could transform India’s aerospace industry
India’s LoR had laid down a set of non-negotiable clauses, including the integration of Indian weapons, missiles and ammunition on all 114 jets. The transfer of technology (ToT) is expected to cover the engine, airframe and avionics, allowing Indian industry to participate not only in assembly but also in the production of critical subsystems.
The Indian side will scrutinise the French offer on these aspects, particularly the extent to which Indian-made Astra missiles and other indigenous weapons can be integrated without compromising the aircraft’s performance or operational security. The deal also envisages the establishment of a comprehensive MRO ecosystem in India, reducing dependence on foreign facilities for maintenance and overhauls.
The proposal also reinforces the strategic partnership between India and France, with both countries signalling a new model of defence cooperation based on co-development, industrial participation and long-term technology collaboration. French diplomatic sources have described the deal as a partnership rather than a client-vendor arrangement, with greater emphasis on local manufacturing, integration of Indian weapons systems, and industrial participation by Indian entities.
As negotiations proceed, the focus will remain on finalising the terms of technology transfer, indigenous content, pricing, delivery timelines and offset obligations. If approved, the deal could be concluded within the next year, ushering in a new era of ‘Made-in-India’ Rafale jets and significantly enhancing India’s air power projection capabilities in the Indo-Pacific region.