New Delhi: India and France are reportedly on the verge of finalizing a high-value defence agreement worth around $22 billion for the procurement of 114 Dassault Rafale multirole fighter jets, according to local Indian media and defence sources. The deal is expected to be formally announced during French President Emmanuel Macron’s upcoming official visit to India next month, according to the sources.
The potential acquisition comes as the Indian Air Force (IAF) faces an urgent shortfall in fighter squadrons — a pressing issue driven by the retirement of aging jets and delayed indigenous programmes.
Background of India France Rafale Deal
The IAF currently operates far below its authorized strength of 42.5 squadrons, with estimates suggesting squadron levels have dipped to critical lows due to phased retirements of older platforms.
Read also: Explained: What Are Solar-Powered Spy Drones and Why Is the Indian Army Deploying Them Now?
To counter this capability gap and maintain operational readiness across multiple fronts — especially given rising regional security challenges — additional modern fighter aircraft are seen as indispensable. This has led India to step up government-to-government (G2G) discussions with France for a follow-on Rafale acquisition ahead of the longer-delayed Multi-Role Fighter Aircraft (MRFA) procurement programme.
A Government-to-Government (G2G) Deal with Strategic Overtones
Unlike traditional vendor-to-buyer contracts, this deal is being positioned as a government-to-government agreement between India and France, a framework that expedites procurement, bypasses lengthy competitive bidding, and enables faster delivery.
Key aspects of G2G defence deals typically include:
- Direct negotiations between governments
- Broader strategic cooperation
- Integrated ‘Make in India’ components
- Deep bilateral trust and technology sharing
This format has been used previously in the 2016 Rafale deal for 36 aircraft and subsequent acquisitions.
What is Rafale F5 Variant
The jets under negotiation are believed to be the Dassault Rafale F5 variant — an advanced multirole combat aircraft designed to perform air superiority, ground attack, and electronic warfare missions.
The F5 standard is expected to feature upgraded avionics, sensors, and weapons systems compared to earlier Rafale configurations.
Industrial & Technological Collaboration: ‘Make in India’ Feature
Beyond procurement, a core pillar of the talks involves localizing production:
- Tata Advanced Systems Limited (TASL) is already manufacturing critical Rafale fuselage sections at a facility in Hyderabad.
- An emerging ecosystem for Maintenance, Repair, and Overhaul (MRO) is under development — including engine servicing and aircraft support infrastructure.
Together, these initiatives could raise localized value content to nearly 60% over time.
This approach aligns with India’s broader Atmanirbhar Bharat (self-reliant India) strategy and is projected to support domestic aerospace sector growth while strengthening strategic industrial ties with France.
Read also: From Drones to Rafales: How Operation Sindoor Changed Indian Defence Spending Pattern
