114 Rafale jets cleared: What the Rs 3.25 lakh crore agreement means for IAF

The proposed Rs 3.25 lakh crore Rafale acquisition for the Indian Air Force (IAF) involves the procurement of 114 multirole fighter aircraft from France under a structured manufacturing and technology transfer framework.
Under the plan, 18 aircraft will be delivered in fly-away condition directly from Dassault Aviation in France. The remaining 96 jets will be manufactured in India as part of a production transfer arrangement aimed at strengthening domestic aerospace capability.
Some of the aircraft will be twin-seater variants intended for pilot training and operational flexibility.
A key component of the agreement is the transfer of advanced fighter aircraft technology. The deal is expected to deepen industrial collaboration between Dassault Aviation and Indian defence partners under the ‘Make in India’ initiative. Tata Advanced Systems Limited is expected to play a significant role in manufacturing major structural components, including fuselage sections, at a proposed production facility in Hyderabad. The first fuselage sections are expected to be produced by 2028.
The Rafale jets will be equipped with advanced combat systems and weapons packages. These include:
- SCALP air-launched cruise missiles capable of striking targets over 250 km away
- Meteor long-range air-to-air missiles
- Hammer precision-guided stand-off weapons
- Spectra electronic warfare suite
- Advanced radar and targeting systems
The deal structure also includes long-term maintenance, repair and overhaul (MRO) support, logistics arrangements and training components to ensure operational readiness over the aircraft’s lifecycle.
The proposal has received Acceptance of Necessity (AoN) from the Defence Acquisition Council and will require final approval from the Cabinet Committee on Security before contract signing.
If concluded, the agreement would significantly expand the Indian Air Force’s Rafale fleet beyond the existing 36 aircraft already in service, while boosting domestic aerospace manufacturing capabilities.