India and France are moving closer to finalising a major government-to-government deal for additional Rafale fighter jets to bridge critical gaps in the Indian Air Force’s (IAF) combat strength, according to officials familiar with the negotiations.
Talks have gained momentum ahead of the expected visit of Emmanuel Macron to India next month, with sources indicating that an agreement could take shape soon. The Indian Air Force has flagged an urgent requirement for modern multirole fighters as squadron strength continues to dip amid the retirement of legacy aircraft.
Why the Rafale Expansion Matters
The IAF has projected a minimum requirement of around 114 new combat aircraft to stabilise force levels and maintain deterrence across a two-front challenge. With 36 Rafales already in service from the 2016 deal, additional inductions would provide immediate operational relief while longer-term indigenous programmes mature.
Rafales are valued for their versatility—precision strike, electronic warfare, and beyond-visual-range combat—along with seamless integration of Indian weapons such as the Astra missile.
Indigenous Manufacturing at the Core
A key pillar of the proposed deal is deep localisation. In June 2025, Tata Advanced Systems Limited partnered with Dassault Aviation to manufacture critical Rafale fuselage sections in India. A dedicated facility in Hyderabad is under construction, targeting initial deliveries by FY2028 with an annual capacity of 24 fuselages—serving both Indian requirements and Dassault’s global supply chain.
Complementary projects include a planned engine manufacturing facility in Hyderabad and a Maintenance, Repair and Overhaul (MRO) hub at Jewar, Uttar Pradesh. Collectively, these initiatives could localise up to 60% of the Rafale’s production value, aligning with India’s Atmanirbhar Bharat push.
Pricing, Process and Timelines
Pricing discussions will draw on a benchmark set in 2025, when India contracted 24 Rafale Marine variants for the Navy at approximately €7.4 billion. The new procurement will require approvals from the Defence Acquisition Council, detailed cost negotiations, and final clearance by the Cabinet Committee on Security. Budgetary provisions in the upcoming fiscal plan will be crucial.
Strategic and Industrial Impact
Beyond plugging immediate capability gaps, the deal would deepen India–France defence ties, diversify India’s fighter supply base, and reduce dependence on legacy platforms. France’s track record on timely deliveries has also bolstered confidence in the partnership.
If concluded, the Rafale expansion would complement indigenous efforts such as Tejas Mk-2 and the Advanced Medium Combat Aircraft (AMCA), supporting the IAF’s long-term objective of rebuilding towards 42 squadrons. For India’s aerospace sector, it could catalyse a broader ecosystem—positioning the country as a global manufacturing and support hub for Rafale programmes.
