NEW DELHI: India is reportedly moving closer to finalising what could become the largest defence acquisition in the country’s history — a potential ₹3.25 lakh crore deal for 114 Rafale fighter jets from France. According to sources cited by news agency ANI, the proposal is expected to be discussed in a high-level meeting of the Ministry of Defencescheduled over the next two to three days.

If approved, this acquisition would significantly enhance the Indian Air Force’s (IAF) combat capability, increasing the total number of Rafale jets in the country to 176 aircraft. Currently, the IAF operates 36 Rafales, while the Indian Navy placed orders for 26 jets last year. The proposed deal envisages 12 to 18 fly-away aircraft for immediate induction into the IAF, with the remaining jets to be manufactured in India, incorporating around 30 per cent indigenous content.

Strategic Context and Global Options

The decision to move forward with the Rafale deal comes amid offers from both the United States and Russia to supply their fifth-generation fighter jets, including the F-35 and Su-57, to India. Despite these alternatives, the Indian government appears to be prioritising the Rafale platform, citing its proven performance and operational familiarity with the IAF’s existing fleet.

According to defence sources, India has requested France to facilitate the integration of Indian-made weapons and other indigenous systems into the aircraft under a government-to-government arrangement. While the source codes and proprietary systems of the Rafale would remain under French control, the integration would allow India to gradually customise the jets for its operational and strategic needs.

“The Statement of Case (SoC) or the proposal for the 114 Rafale jets prepared by the Indian Air Force was received by the Defence Ministry a few months ago. Once approved by the Defence Ministry, the proposal will have to be given final clearance by the Cabinet Committee on Security,” a source told ANI.

Operational Justification

One of the driving factors behind this proposed acquisition is the rapid modernisation of India’s air combat capabilityand the growing strategic challenges in the region. The Rafale has already demonstrated its operational effectiveness during Operation Sindoor, where the jets reportedly outperformed adversary systems, including the Chinese PL-15 air-to-air missiles, leveraging the advanced Spectra Electronic Warfare suite onboard. This performance has reinforced confidence in the aircraft’s capability for multi-role operations, including air superiority, precision strikes, and strategic deterrence.

The proposed fleet of 114 jets will not only replace ageing aircraft but also complement India’s ongoing indigenous fighter programs, such as the LCA Mark 1A and the planned fifth-generation indigenous fighter (FGFA) expected to be inducted in large numbers beyond 2035. Analysts say that a mixed force structure — including Su-30 MKIs, Rafales, and indigenous platforms — provides operational flexibility, redundancy, and technological diversification in the long term.

Make in India and Industrial Participation

As part of India’s Make in India and defence self-reliance initiatives, the proposed deal includes substantial opportunities for domestic manufacturing and technology transfer. While the initial fleet of aircraft will have around 30 per cent indigenous content — lower than typical Make in India thresholds of 50-60 per cent — the government aims to involve Indian aerospace companies such as Tata Advanced Systems in the production and assembly of the aircraft.

The French defence firm Dassault Aviation is reportedly planning to establish a maintenance, repair, and overhaul (MRO) facility for Rafale’s M-88 engines in Hyderabad, which would ensure sustained operational readiness and capacity for future upgrades. This facility would also create significant employment and skill development opportunities in India’s defence manufacturing sector.

Financial and Strategic Implications

At ₹3.25 lakh crore, the proposed Rafale acquisition would become India’s largest-ever single defence procurement, surpassing all previous deals in scale and strategic significance. The move is being positioned as a critical step in addressing India’s regional security requirements, particularly amid increasing tensions along its northern and western frontiers.

The deal would also provide India with a high-end multirole fighter capability, ensuring readiness for both conventional and asymmetric threats. Defence analysts note that the aircraft’s advanced avionics, electronic warfare systems, and precision strike capability would be a force multiplier for the IAF, particularly when integrated with long-range missile systems, drone operations, and network-centric warfare platforms.

Path Ahead

Once the Defence Ministry completes internal discussions, the proposal will require clearance from the Cabinet Committee on Security (CCS). Following approval, formal negotiations with the French government and Dassault Aviation would finalise production schedules, pricing, and technology transfer agreements.

Officials emphasise that this acquisition is not only a platform procurement but a broader strategic partnership initiative, integrating Indian industry, skill development, and operational requirements. The timeline for delivery would likely include phased induction of fly-away jets, followed by locally manufactured aircraft with increasing indigenous content over the next decade.

Conclusion

The proposed 114 Rafale deal marks a critical juncture in India’s defence modernisation roadmap, reflecting both strategic foresight and operational necessity. By expanding the Rafale fleet, India aims to enhance its deterrence posture, improve regional power projection, and integrate modern, network-enabled platforms with domestic aerospace capabilities. The combination of immediate fly-away aircraft and phased local manufacturing also aligns with India’s Make in India goals, signalling a shift toward long-term self-reliance in high-end defence technologies.

If approved, the deal will not only bolster India’s air combat capability but also set a new benchmark in defence procurement, balancing strategic imperatives, industrial growth, and indigenous capability development.