Centre considering ₹3.25 L-cr deal for 114 Rafale jets

The defence ministry is considering an Indian Air Force proposal to buy 114 French-origin Rafale jets to boost its combat readiness at a time it is grappling with a worrying shortage of fighter squadrons, and discussions on the potential deal with France are progressing satisfactorily, officials aware of the matter said on Wednesday.

The capability boost is expected to cost around ₹3.25 lakh crore, the officials said, asking not to be named, adding that an actual deal is still a long way off. Under the model being considered, the Rafales will be made in India by French plane maker Dassault Aviation and a local partner.

“Ongoing talks are focused on localisation of the Rafales to be made in India,” said one of the officials cited above. The fighter jets are expected to have an indigenous content ranging between 30% and 60%, Hindustan Times has learnt.

Quicker induction of fighter jets, mid-air refuellers and airborne early warning and control (AEW&C) systems tops the recommendations made by an empowered committee last year for capability enhancement of the IAF. The air force has around 30 fighter squadrons compared to an authorised strength of 42.5.

Under the model under consideration, France will supply 18 Rafale jets in fly-away condition while the remaining 96 will be made in India, said another official. The defence ministry is likely to accord its acceptance of necessity (AoN) for the new fighters later this year, the officials said. Under India’s defence procurement rules, AoN by the ministry’s defence acquisition council is the first step towards buying military equipment.

The IAF already operates 36 Rafale fighter jets bought from France at a cost of ₹59,000 crore. Some of the air force’s Rafales were among the fighter jets used during Operation Sindoor in early May 2025 --- India’s strikes on terror and military installations in Pakistan and Pakistan-occupied Kashmir following the Pahalgam terror attack in which 26 people were killed.

India also ordered 26 Rafale Marine fighter jets from France in April 2025 for the navy which will operate them from its two aircraft carriers. The first deliveries of the Rafale Ms under the ₹63,000-crore contract will take place in 2029 and be completed by 2031.

In June 2025, Dassault Aviation and Tata Advanced Systems Limited (TASL) announced their partnership to build the Rafale fuselage at a facility being set up in Hyderabad; a big leap for the government’s wide-ranging Make-in-India initiative --- the main body of future Rafale fighter jets will be produced outside France for the first time, in India.

The Hyderabad facility will supply the fuselages for India and other international markets 2028 onwards. Some of the 26 Rafale M fighters ordered by India will come with locally produced fuselages.

Last October, IAF chief Air Chief Marshal AP Singh made a strong case for swifter induction of new military hardware in the air force, including fighter jets. He said the Rafale was one of the options to shore up the air force’s combat fleet, speaking in the context of the need for 114 multi-role fighter aircraft to be made in India by a foreign original equipment manufacturer and a local partner.