India, France Set to Seal ₹3.25 Lakh Crore Rafale Deal as Modi, Macron Meet in Mumbai

Digital Desk

India, France Set to Seal ₹3.25 Lakh Crore Rafale Deal as Modi, Macron Meet in Mumbai

India and France are poised to sign a defence agreement worth about ₹3.25 lakh crore on Monday, marking the country’s largest-ever military procurement, as Prime Minister Narendra Modi meets French President Emmanuel Macron in Mumbai. The deal will secure 114 Rafale fighter jets for the Indian Air Force, significantly boosting India’s aerial combat capability amid evolving regional security challenges.

The leaders’ talks, scheduled for mid-afternoon, will cover defence cooperation, maritime security, Indo-Pacific strategy, artificial intelligence, and emerging technologies. Later, they will jointly launch the India-France Innovation Year 2026 initiative and interact with industry leaders, startup founders, and researchers from both countries.

Under the agreement, only 18 aircraft will be delivered directly from France, while 96 will be manufactured in India under a technology-transfer arrangement with Dassault Aviation and its Indian partner Reliance Infrastructure. Officials said indigenous content in the jets could eventually reach nearly 60 percent, aligning with New Delhi’s domestic manufacturing push.

Most of the incoming aircraft will be advanced F-4 variants, with deliveries expected between 2028 and 2029, while newer F-5 versions—still in development—are slated for induction after 2030. All jets will be equipped with Indian weapons systems and secure data links designed to integrate with the country’s radar and sensor networks.

India previously purchased 36 Rafale jets in a 2016 agreement valued at roughly €7.8 billion. Those aircraft were delivered between 2019 and 2022 and deployed at Ambala Airbase and Hasimara Airbase. Defence analysts say operational experience with that fleet influenced the decision to pursue a larger follow-on order.

Macron’s visit, his fourth to India as president, underscores a strategic partnership that began in 1998 and spans defence, space, nuclear energy, and technology. A delegation of more than 100 French companies has accompanied him to explore investment opportunities and joint ventures with Indian firms.

Officials on both sides describe the new agreement as more than a procurement contract, calling it a long-term industrial and strategic collaboration. The combination of technology transfer, local manufacturing, and joint research is expected to deepen bilateral ties and enhance India’s defence preparedness over the next decade.

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