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Defence Ministry Examines IAF’s ₹2 Lakh Crore Proposal for 114 Rafales, India’s Largest Fighter Jet Buy

MoD begins review of IAF’s ₹2 lakh crore proposal to acquire 114 ‘Made in India’ Rafale jets, India’s largest-ever defence deal.
Indian Masterminds Stories

New Delhi: The Ministry of Defence has received the Indian Air Force’s (IAF) proposal to acquire 114 Rafale fighter jets under the ‘Make in India’ framework. Valued at over ₹2 lakh crore, the plan is now under detailed review.

Strategic Partnership Model with Indigenous Focus

The acquisition will be pursued under the strategic partnership model. Dassault Aviation will work with Indian manufacturers, including Tata, to ensure over 60% indigenous content. This move supports the Atmanirbhar Bharat drive while strengthening India’s defence industrial base.

Largest Defence Deal in Indian History

The IAF submitted its Statement of Case (SoC) recently. The proposal is undergoing scrutiny across Defence Finance and other departments. Following review, it will be examined by the Defence Procurement Board (DPB), chaired by the Defence Secretary, and later by the Defence Acquisition Council (DAC), chaired by the Defence Minister. If cleared, the project would surpass the ₹59,000 crore deal for 36 Rafales, making it India’s largest-ever defence contract.

Expanding the Rafale Fleet Across Services

The new procurement will expand the IAF’s Rafale fleet to 176 aircraft, including the 36 jets already in service and the 36 Rafale-M fighters contracted for the Navy. Together with the
Su-30MKI and the indigenous Tejas line, Rafales will serve as a frontline combat pillar for India’s air power.

Dassault Aviation is expected to set up a Maintenance, Repair, and Overhaul (MRO) facility for Rafale’s M-88 engines in Hyderabad. The facility will enhance fleet sustainment while integrating Indian industry into long-term support structures.

Operational Edge Proven in Combat

Rafales have already proven their combat credibility with the IAF. During Operation Sindoor, the aircraft outperformed rival systems and countered China’s PL-15 long-range missiles using the Spectra electronic warfare suite. The proposed Indian Rafales will feature further enhancements, including new long-range air-to-ground weapons beyond the Scalp cruise missile. These upgrades will strengthen India’s strike capability against both Western and Northern adversaries.

The IAF currently operates only 30–31 combat squadrons against a sanctioned strength of 42. The induction of 114 Rafales will fill immediate gaps while bridging the capability transition until the Advanced Medium Combat Aircraft (AMCA) enters production post-2035.

Boosting India’s Aerospace Ecosystem

The ‘Made in India Rafale’ program is designed not just as a military acquisition but as a wider industrial catalyst. Localisation will cover fuselages, avionics, and component manufacturing, backed by an ecosystem of suppliers, spares, and MRO. The initiative will deepen Indo-French defence ties and accelerate India’s aerospace growth in line with self-reliance goals.

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