France offers to build 94 of 114 Rafale jets in India under Rs 3.25-lakh crore deal

A key feature of the offer is the local production of 94 jets in partnership with Indian industry. The government is now examining the technical and commercial aspects of the bid, including indigenous weapons integration and technology transfer.France submits Rs 3.25 lakh crore Rafale proposal; 94 jets to be built in India (File photo)France has submitted its detailed technical and commercial proposal to India for the proposed acquisition of 114 Rafale multirole fighter aircraft, marking a key step forward in one of the country's biggest defence procurement programmes. Estimated to be worth around Rs 3.25 lakh crore, the government-to-government deal is currently being evaluated by the Ministry of Defence's Acquisition Wing and the Indian Air Force (IAF), defence sources said.The proposal follows India's Letter of Request (LoR) sent to France in May this year and places strong emphasis on local manufacturing, technology transfer and greater indigenous content.A major highlight of the French proposal is the plan to manufacture 94 of the 114 Rafale jets in India through a domestic industry partner. The production programme is expected to involve Dassault Aviation along with leading French defence firms MBDA, Safran and Thales.The project is expected to significantly boost India's aerospace manufacturing ecosystem, with substantial opportunities for Indian companies such as Tata, Larsen & Toubro and other domestic defence manufacturers. Industry participation under the programme could generate business worth around Rs 1.6 lakh crore, according to sources. INDIGENOUS WEAPONS, LOCAL CONTENT UNDER SCRUTINYThe Indian side is expected to closely examine the French proposal for provisions related to the integration of indigenous weapons systems, particularly variants of the Astra beyond-visual-range air-to-air missile, into the Rafale platform.Officials will also assess the level of indigenisation offered under the deal, in line with the government's push to strengthen domestic defence manufacturing and reduce dependence on imported military equipment.CRITICAL FOR IAF'S COMBAT STRENGTH The acquisition is aimed at addressing the Indian Air Force's declining squadron strength, which has been affected by the phased retirement of ageing MiG fighter aircraft and delays in the induction of indigenous platforms such as the LCA Mk1A and the upcoming LCA Mk2.The Rafale was selected by the Defence Ministry in 2012 after a lengthy global competition and has since emerged as one of the IAF's frontline combat aircraft.The Defence Acquisition Council cleared the proposal for procuring 114 Rafale jets around five months ago, following a capability enhancement review initiated by Defence Secretary Rajesh Kumar Singh after he assumed office in 2024.INDIA'S RAFALE FLEET SET TO GROWThe Indian Air Force and the Indian Navy have already placed orders for 62 Rafale aircraft. If the proposed acquisition goes through, India's Rafale fleet will increase to 176 aircraft.The Indian Navy has also expressed its intent to induct 31 additional Rafale-M fighter jets for carrier-based operations, which could eventually take the total number of Rafales in Indian service to more than 200.- EndsWith agency inputsPublished By: Priyanka KumariPublished On: Aug 6, 2026 23:45 IST