IAF seeks 114 Rafales in historic Rs.2 lakh crore defence deal

The Indian Air Force has submitted a formal proposal to the Defence Ministry for acquiring 114 Made in India Rafale fighter jets in collaboration with French manufacturer Dassault Aviation and Indian aerospace firms. The mega deal, estimated at over Rs.2 lakh crore, would become India's largest defence contract to date.

Key Deal Highlights

The proposal includes more than 60% indigenous content and will involve joint manufacturing between Dassault Aviation and Indian companies including Tata Advanced Systems. Defence officials confirmed the Statement of Case (SoC) was received by the Ministry of Defence recently and is currently under review by various departments including Defence Finance.

Fleet Expansion to 176 Aircraft

If approved, India's total Rafale fleet will reach 176 aircraft, adding to the existing 36 IAF Rafales and 26 Rafale Marine jets ordered for the Indian Navy. The Indian Navy's Rafale-M deal, signed in April 2025 for Rs.63,000 crore, includes 22 single-seaters and 4 twin-seaters scheduled for delivery between 2028-2031.

Operation Sindoor Success Drives Demand

The proposal follows the Rafale's exceptional performance during Operation Sindoor in May 2025, where the aircraft effectively countered Chinese PL-15 air-to-air missiles using its advanced Spectra electronic warfare suite. The operation demonstrated India's precision strike capabilities against Pakistan without crossing the Line of Control.

Manufacturing Infrastructure

Dassault Aviation plans to establish comprehensive MRO facilities in India, with Safran setting up an M-88 engine maintenance hub in Hyderabad by year-end. The company has also partnered with Tata to manufacture Rafale fuselages in Hyderabad, marking the first time these components will be produced outside France.

The proposal will proceed through the Defence Procurement Board and Defence Acquisition Council for final approval, potentially strengthening India's defence manufacturing ecosystem while addressing the IAF's urgent squadron requirements.