New Delhi: India and France are closing in on a landmark defence agreement that could see the Indian Air Force acquire up to 114 Rafale fighter jets, marking one of the largest military procurement deals in recent years and a major boost to India's "Make in India" defence manufacturing push.

The deal under discussion includes 90 Rafale F4 jets with an option for 24 next-generation F5 variants, according to recent statements from France's Ministry of the Armed Forces. The move comes as French President Emmanuel Macron prepares to visit India in February for the AI Impact Summit in New Delhi, where the deal is expected to feature prominently in bilateral discussions.

Manufacturing Push in India

A distinguishing feature of the proposed agreement is the emphasis on domestic production. Tata Advanced Systems Limited has already signed production transfer agreements with France's Dassault Aviation to manufacture Rafale fuselages at a new facility in Hyderabad. The facility, expected to begin production in fiscal year 2028, will have the capacity to produce up to 24 fuselages annually for both Indian requirements and global orders.

According to sources, the manufacturing ecosystem being developed in India could bring 60% of the Rafale's production value into the country. This includes an engine production plant in Hyderabad and a maintenance, repair and overhaul hub being established near Jewar International Airport in Uttar Pradesh.

Addressing Squadron Shortage

The proposed acquisition comes at a critical time for the Indian Air Force, which currently operates only 29 fighter squadrons against a sanctioned strength of 42. The IAF already operates 36 Rafale jets acquired under a 2016 contract, deployed at Ambala and Hasimara air bases.

India's need for additional fighters became more urgent following Operation Sindoor in May 2025, when Rafale jets were extensively used in strikes on terrorist infrastructure in Pakistan. The operation highlighted both the capabilities of the French-made aircraft and the IAF's squadron constraints.

In April 2025, India signed a separate $7.4 billion deal with France for 26 Rafale-M carrier-based aircraft for the Indian Navy, with deliveries expected to be completed by 2030. Together with the proposed air force procurement, India would operate both air and naval variants of the Rafale, making it the only country besides France to do so.

The Multi-Role Fighter Aircraft program has been pending for years, with initial cost estimates exceeding $22 billion. According to recent reports, groundwork has begun to expedite the acquisition, with the Defence Acquisition Council expected to provide formal approval before price negotiations and final Cabinet Committee on Security clearance.