114 Rafale jet deal | France submits detailed proposal for Rs 3.25 lakh crore aircraft deal to India

France has submitted its detailed technical and commercial proposal to India for the proposed acquisition of 114 Rafale multi-role fighter aircraft, marking a major step forward in one of the Indian Air Force's largest combat aircraft procurement programmes.

According to defence sources, the French response to India's Letter of Request (LoR) is currently being examined by the Defence Ministry's Acquisition Wing and the Indian Air Force (IAF). The proposal outlines large-scale local manufacturing, technology collaboration and indigenous production as part of the government-to-government deal.

India to scrutinise indigenous content

The Indian side is expected to closely evaluate France's proposal, particularly its provisions for integrating indigenous systems and increasing domestic content in the aircraft. Officials are examining the extent to which Indian-developed weapons, including variants of the Astra beyond-visual-range air-to-air missile, can be integrated into the Rafale platform. The proposal is also expected to be assessed on technology transfer, maintenance support and the participation of Indian industry.

Majority of aircraft to be built in India

Under the proposed arrangement, 94 of the 114 Rafale jets would be manufactured in India in partnership with an Indian industrial partner, while the remaining aircraft would be supplied in fly-away condition. The manufacturing ecosystem is expected to involve Dassault Aviation along with key French defence firms such as Safran (engines), Thales (avionics and electronics) and MBDA (missile systems). The programme is likely to involve substantial localisation, with industry estimates suggesting business opportunities worth around ₹1.6 lakh crore for Indian companies, including Tata Group, Larsen & Toubro and other domestic defence manufacturers.

IAF seeks to bridge fighter squadron gap

India issued the Letter of Request to France in May this year, following approval from the Defence Acquisition Council for the procurement proposal. The acquisition is intended to address the Indian Air Force's declining fighter squadron strength, which has been affected by the phased retirement of ageing MiG-series aircraft and delays in the induction of indigenous platforms such as the LCA Mk1A and the LCA Mk2. The IAF has consistently maintained that additional fighter aircraft are required to restore operational capability and meet evolving security challenges.

Rafale fleet could cross 200 aircraft

India has already contracted 62 Rafale aircraft for the Air Force and the Navy. If the proposed order for 114 fighters is finalised, the country's Rafale fleet would increase to 176 aircraft. The Indian Navy has also expressed interest in acquiring 31 additional Rafale Marine fighters for aircraft carrier operations, a move that could eventually take India's Rafale inventory to more than 200 aircraft.

Capability enhancement drive

The proposed procurement forms part of a broader effort by the Defence Ministry to strengthen the Indian Air Force's combat capabilities. The ministry undertook a comprehensive capability review under Defence Secretary Rajesh Kumar Singh after he assumed office in 2024, with modernisation of fighter aircraft identified as a key priority. The French proposal is expected to undergo detailed technical, commercial and operational evaluation before negotiations advance to the next stage of the procurement process.