India, France near mega Rafale deal amid IAF gaps

India and France are inching closer towards a mega deal for fighter jets, with additional Rafales likely to be ordered to meet the shortfall in the air force inventory. The proposal to acquire the fighter jets is likely to gain steam in the run-up to French President Emmaneal Macron's scheduled visit to India next month.

The Indian Air Force (IAF) has already moved a proposal to acquire a significant number of jets, under a government-to-government deal that will also involve them being manufactured in India. While the final numbers of the jets to be acquired are under discussion, the IAF has a projected requirement of at least 114 modern combat aircraft.

Sources said that the acquisition will require a formal clearance by the Defence Acquisition Council, followed by cost negotiations and finally an approval by the Cabinet Committee on Security. Adequate provisions in the annual budget will also be needed. Last year, India signed a contract for 24 naval variants of the aircraft and has a benchmarked price available for the larger deal that is likely to run into tens of billions of euros.


Manufacturing the Rafales domestically will bring critical technologies to the Indian industrial ecosystem. In June last year, Tata Advanced Systems Limited (TASL) signed agreements with France's Dassault Aviation to manufacture the Rafale fighter aircraft fuselage in India. TASL is setting up a dedicated manufacturing facility in Hyderabad to make four main parts of the fuselage for Indian requirements as well as global orders given to Dassault. The facility is expected to deliver the first units by FY28 and would have a capacity to produce 24 fuselages annually.

Sources said that the current projects underway, including setting up of an engine production plant in Hyderabad and a Maintenance, Repairs and Overhaul (MRO) hub in UP's Jewar, could bring 60% of Rafale manufacturing by value into India.