India's defence ministry clears $39 billion Rafale fighter jet proposal

Dubai; India has cleared a massive proposal to acquire 114 Rafale fighter jets from France, marking one of the country’s largest defence procurements as New Delhi accelerates efforts to modernise its ageing combat fleet.

The approval, granted by the Defence Acquisition Council (DAC) chaired by Defence Minister Rajnath Singh, covers a programme valued at approximately ₹3.25 lakh crore — about $39 billion — according to official sources.

The decision comes days ahead of French President Emmanuel Macron’s scheduled visit to New Delhi from February 17 to 19, underlining the deepening strategic and defence partnership between the two countries.

Under the cleared proposal, India will purchase 18 Rafale jets in flyaway condition, while the remaining 96 aircraft will be manufactured in India, reflecting New Delhi’s push to strengthen domestic defence production.

Officials indicated that the agreement would involve significant technology transfer and industrial collaboration with Dassault Aviation, the French manufacturer of Rafale fighter jets.

Earlier defence ministry statements cited by AFP said “the majority” of aircraft under the programme would be produced locally. Indian media reports have suggested that as many as 90 jets could ultimately be built in India.

The deal will still require final approval from the Cabinet Committee on Security (CCS), chaired by Prime Minister Narendra Modi, before commercial negotiations conclude.

The local manufacturing component is expected to provide a major boost to India’s defence-industrial ambitions.

Tata Advanced Systems Limited is slated to play a key role, with plans to establish an advanced production facility in Hyderabad to manufacture critical structural sections of the Rafale aircraft, including fuselage components.

According to IANS, the first fuselage segments are expected to roll off assembly lines by 2028, signalling long-term industrial engagement.

The procurement comes as the Indian Air Force faces mounting operational pressures linked to a shrinking squadron strength.

India currently operates 29 fighter squadrons, significantly below the officially sanctioned level of 42. The shortfall has been attributed to the retirement of ageing Soviet-era platforms and delays in new inductions.

Recent retirements have included the MiG-21 fleet, while aircraft such as the MiG-29 and Mirage 2000 are expected to phase out over the coming years.

Defence planners have repeatedly flagged the urgent need for multi-role combat aircraft capable of long-range strike and advanced deterrence roles.

India has steadily expanded its Rafale fleet in recent years.

New Delhi previously acquired 36 Rafale jets for the Air Force under an $8.7-billion deal, with deliveries completed in 2024. A separate agreement was signed for 26 Rafale-M naval variants for deployment aboard India’s aircraft carriers INS Vikrant and INS Vikramaditya.

The Rafale jets have been positioned as a cornerstone of India’s air-power strategy, equipped to carry advanced weapon systems including SCALP cruise missiles, Meteor air-to-air missiles, and sophisticated electronic warfare suites.

The Rafale programme also reflects India’s broader diversification away from traditional reliance on Russian military hardware.

Over the past decade, New Delhi has deepened defence ties with France, the United States and Israel while simultaneously promoting indigenous platforms such as the Tejas fighter aircraft.

Earlier this year, India announced a record defence budget of $85 billion, described by Defence Minister Rajnath Singh as “unprecedented,” amid continuing regional security challenges.

Analysts say the timing of the Rafale clearance underscores the intersection of diplomacy, deterrence and industrial policy.

With geopolitical tensions persisting across multiple theatres, India’s leadership has emphasised the need for enhanced combat readiness and long-range strike capabilities.

Macron’s upcoming visit is expected to further consolidate bilateral defence cooperation, including joint production initiatives and technology partnerships.

— With AFP and IANS inputs