India Set to Clear ₹3.25 Lakh Crore Deal for 114 Rafale Jets Ahead of Macron’s Visit

New Delhi is poised to take a major step in strengthening its air combat capabilities, with the Defence Acquisition Council (DAC) expected to clear a proposal to procure 114 Rafale fighter jets from France ahead of French President Emmanuel Macron’s visit to India later this month. The move is being closely watched as one of the largest defence acquisition decisions in India’s history and a key signal of deepening strategic cooperation between New Delhi and Paris.

The proposal has already received clearance from the Defence Procurement Board and is now set to be considered by the DAC, chaired by Defence Minister Rajnath Singh. Once approved, the programme will formally move into the technical and commercial negotiation stage, setting the process in motion for what is estimated to be a ₹3.25 lakh crore deal. The timing is significant, as it coincides with President Macron’s participation in major bilateral engagements and technology-focused summits in India, underlining the growing strategic alignment between the two countries.

File photo shows a Rafale aircraft during its induction ceremony in Ambala. (PTI photo) | India Today

Addressing the Indian Air Force’s Squadron Crisis

The urgency behind the proposed acquisition is driven by the Indian Air Force’s critical shortage of fighter squadrons. The IAF currently operates around 29 to 30 squadrons, well below its sanctioned strength of 42. This gap has widened due to the retirement of ageing aircraft such as the MiG-21 fleet and delays in the induction of new platforms, including indigenous fighters.

Defence planners have repeatedly warned that this shortfall comes at a time of rising regional security challenges. Growing military coordination between China and Pakistan, coupled with ongoing tensions along both the northern and western borders, has heightened the need for rapid force modernisation. Officials view the Rafale acquisition as a key step to stabilise squadron strength and ensure that the IAF retains credible deterrence and operational readiness in a two-front scenario.

Make in India Push and Domestic Manufacturing Plans

A major feature of the proposed deal is its strong emphasis on domestic production under the Make in India and Atmanirbhar Bharat initiatives. Under the current plan, around 18 Rafale jets are expected to be procured in fly-away condition from France to allow for faster induction. The remaining 96 aircraft would be manufactured in India, with nearly 80 per cent of the fleet produced domestically.

Indigenous content in the aircraft is expected to range between 30 and 60 per cent, depending on the final structure of technology transfer and local sourcing. Dassault Aviation is expected to work closely with Indian private sector partners to establish large-scale production and assembly lines in India. The French company has already expanded its footprint in the country, including setting up maintenance, repair and overhaul facilities and partnering with Tata Advanced Systems to manufacture Rafale fuselage sections in Hyderabad. This marks a significant step in building a domestic aerospace manufacturing ecosystem and reducing long-term dependence on imports.

Expanding India’s Rafale Fleet and Combat Capabilities

Under the proposed configuration, the Indian Air Force is expected to induct a mix of 88 single-seat and 26 twin-seat Rafale variants. Once the deal is concluded, India’s total Rafale fleet could rise to around 150 aircraft, in addition to the 26 Rafale Marine jets already approved for the Indian Navy for operations from aircraft carriers.

The Rafale is widely regarded as a major force multiplier for the IAF. Equipped with advanced avionics, electronic warfare systems, and long-range precision weapons such as the Meteor beyond-visual-range missile and the SCALP cruise missile, the aircraft significantly enhances India’s air superiority and deep-strike capabilities. Defence analysts note that the expanded Rafale fleet would play a critical role in maintaining technological and operational parity in an increasingly contested regional airspace.

Strategic Significance for India–France Defence Ties

The proposed clearance of the Rafale deal is also a reflection of the deepening strategic partnership between India and France. Over the past decade, France has emerged as one of India’s most important defence partners, with cooperation spanning fighter aircraft, submarines, space, and joint military exercises.

The Rafale programme is seen as a cornerstone of this relationship, combining high-end military capability with long-term industrial and technological collaboration. The parallel approval of Rafale Marine jets for the Indian Navy further highlights the expanding scope of bilateral defence ties. Officials on both sides view the upcoming high-level engagements during President Macron’s visit as an opportunity to reinforce this partnership and advance cooperation in emerging domains such as artificial intelligence, space, and advanced defence technologies.

The MGMM Outlook

India’s move to clear the ₹3.25 lakh crore deal for 114 Rafale fighter jets reflects a decisive push to strengthen national air power at a time of growing regional uncertainty. With the Indian Air Force operating far below its sanctioned squadron strength, the proposed acquisition addresses a long-standing capability gap caused by retirements of legacy aircraft and delays in new inductions. The timing, ahead of President Emmanuel Macron’s visit, also highlights the strategic depth of India–France ties and sends a strong signal about India’s intent to rapidly modernise its defence forces in response to evolving security challenges, including the China–Pakistan axis and persistent border tensions.

Equally significant is the emphasis on domestic manufacturing under Make in India and Atmanirbhar Bharat. With the majority of the aircraft planned to be produced in India and substantial indigenous content, the programme is positioned not only as a military upgrade but also as a major boost to India’s aerospace and defence industrial ecosystem. Partnerships with French firms and Indian private players are expected to strengthen technology transfer, create skilled employment, and reduce long-term import dependence. The expansion of the Rafale fleet, alongside Rafale Marine induction for the Navy, reinforces India’s commitment to building credible, technologically advanced deterrence while deepening strategic and industrial cooperation with trusted global partners.

(Sources: India Today, Business Today, Hindustan Times)