India and France Near Agreement on Expanded Rafale Fighter Jet Procurement
India and France are nearing the conclusion of a significant government-to-government agreement for additional Rafale fighter jets, aimed at addressing crucial gaps in the Indian Air Force's (IAF) combat capabilities. Officials involved in the discussions have confirmed the progress.
Negotiations have intensified as Emmanuel Macron is expected to visit India next month, with insiders suggesting that an agreement could be finalized shortly. The Indian Air Force has expressed an urgent need for modern multirole fighters as the number of squadrons diminishes due to the retirement of older aircraft.
Why the Rafale Expansion Matters
The Indian Air Force has identified a requirement for at least 114 new combat aircraft to stabilize force levels and maintain a deterrent posture amid challenges on two fronts. With 36 Rafales already operational from the 2016 agreement, acquiring more would provide immediate operational benefits while domestic programs develop further.
Rafale jets are prized for their versatility in precision strikes, electronic warfare, and beyond-visual-range combat capabilities, as well as their compatibility with Indian weapons like the Astra missile.
Indigenous Manufacturing at the Core
An essential component of the proposed agreement is extensive localization. In June 2025, Tata Advanced Systems Limited teamed up with Dassault Aviation to produce critical sections of the Rafale fuselage in India. A dedicated facility is being constructed in Hyderabad, with plans for initial deliveries by the fiscal year 2028 and the capacity to produce 24 fuselages annually for both Indian needs and Dassault's global supply chain.
Additional projects include a planned engine manufacturing facility in Hyderabad and a Maintenance, Repair, and Overhaul (MRO) hub in Jewar, Uttar Pradesh. Together, these initiatives aim to localize up to 60% of the Rafale's production value, in line with India's Atmanirbhar Bharat initiative.
Pricing, Process and Timelines
The pricing discussions will be based on a benchmark set in 2025 when India ordered 24 Rafale Marine variants for the Navy at a cost of approximately €7.4 billion. The new acquisition will require approvals from the Defence Acquisition Council, detailed cost negotiations, and final authorization by the Cabinet Committee on Security. Budget allocations in the forthcoming fiscal plan will be critical.
Strategic and Industrial Impact
In addition to addressing immediate capability shortfalls, the deal is expected to enhance India-France defense relations, diversify India's fighter jet supply, and reduce reliance on outdated platforms. France's history of timely deliveries has also increased confidence in this collaboration.
If finalized, this expansion of the Rafale fleet will support indigenous projects such as the Tejas Mk-2 and the Advanced Medium Combat Aircraft (AMCA), contributing to the IAF's long-term goal of building up to 42 squadrons. For India's aerospace industry, it may trigger the development of a broader ecosystem, positioning the country as a global hub for manufacturing and support for Rafale programs.
