India Reviews ₹2 Lakh Crore Proposal for 114 ‘Made-in-India’ Rafale Jets

Rafale fighter jet production

The Indian Air Force (IAF) is reviewing a major proposal to acquire 114 Rafale fighter jets, in a deal estimated at over ₹2 lakh crore. This initiative aims to strengthen the IAF’s combat capabilities while promoting self-reliance in defence manufacturing under the ‘Made in India’ framework.

The proposal includes plans for more than 60% of the aircraft components to be manufactured domestically. French aerospace company Dassault Aviation will partner with Indian conglomerate Tata Group to produce critical components, including the fuselage, at facilities in India. The remaining jets are expected to be delivered directly from France to expedite induction into the IAF fleet.

If approved, the deal will increase India’s Rafale fleet to 176 jets, complementing the 36 already in service and 26 ordered for the Indian Navy. This expansion is part of the IAF’s broader strategy to modernize its fleet and achieve the target of 42 fighter squadrons, addressing existing capability gaps.

The move underscores a significant push towards indigenization in defence procurement. Dassault Aviation has committed to establishing a final assembly line in India, with a focus on achieving 60% indigenous content. This includes production of fuselages, wings, and other key components. Plans are also underway to set up a Maintenance, Repair, and Overhaul (MRO) facility in India to service the Rafale’s engines, which will enhance operational readiness and potentially serve global markets.

Economically, the deal is expected to generate thousands of jobs across manufacturing, research and development, and logistics sectors. Strategically, the acquisition will strengthen India’s air power, providing enhanced capabilities in air superiority, precision strikes, and electronic warfare. It also aligns with the broader goal of reducing dependence on foreign suppliers for critical defence equipment.

The IAF’s proposal for 114 ‘Made-in-India’ Rafale jets represents a landmark step toward self-reliance in defence manufacturing. By fostering domestic production and technological collaboration, India is enhancing its military capabilities while supporting the growth of a robust defence industrial ecosystem. The outcome of this proposal will have far-reaching implications for the nation’s defence strategy and its position in the global defence landscape.

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