India discusses $39bn Rafale fighter jet deal with France

India is preparing to hold high-level talks with France this week on a proposal to acquire 114 Rafale fighter jets, a deal valued at around 3.25 trillion rupees, or roughly 39 billion US dollars, according to defence officials.

If approved, the agreement would mark India’s largest-ever defence procurement and significantly expand the combat strength of the Indian Air Force, while also deepening defence and industrial cooperation between New Delhi and Paris.

According to officials familiar with the discussions, the proposal will be taken up at a senior Defence Ministry meeting, following months of internal evaluation by the Indian Air Force. The plan, known as a Statement of Case, will require clearance from the Defence Ministry before being placed before the Cabinet Committee on Security, India’s highest decision-making body on defence matters.

The proposed purchase would see most of the aircraft manufactured in India, with indigenous components accounting for more than 30 per cent of the total content. Defence sources say this reflects the government’s push to strengthen domestic defence manufacturing under its “Make in India” and self-reliance policies.

Officials said that between 12 and 18 of the Rafale jets could be procured in “fly-away” condition, meaning they would be delivered fully built and ready for immediate operational use. The remaining aircraft would be assembled in India, involving local industrial partners.

India is also seeking approval from France to integrate domestically developed weapons and electronic systems into the Rafale platform. However, officials indicated that the proprietary source codes for the aircraft would remain under French control, a standard condition in such international defence deals.

The Rafale, manufactured by the French aerospace company Dassault Aviation, is already in service with the Indian Air Force. India currently operates 36 Rafale fighters, which were acquired under a government-to-government agreement signed in 2016. In addition, the Indian Navy finalised a separate deal last year to procure 26 Rafale-M jets for deployment on aircraft carriers.

If the latest proposal is approved, India’s total Rafale fleet would rise to 176 aircraft, making it one of the largest operators of the platform worldwide. Defence officials say the expanded fleet would play a central role in the Air Force’s future force structure.

The timing of the discussions is significant. India faces a long-standing shortfall in fighter aircraft, with several squadrons operating below sanctioned strength. The Indian Air Force has repeatedly warned that delays in induction of new aircraft could affect its ability to respond to regional security challenges.

The proposed Rafale deal comes as other major powers have also stepped up efforts to supply advanced combat aircraft to India. The United States has offered the F-35, its fifth-generation stealth fighter, while Russia has proposed the Su-57. Indian officials, however, have indicated that immediate operational requirements and proven performance remain key considerations.

Defence sources say the Rafale’s operational record has strengthened its case. Officials have pointed to the aircraft’s performance during recent Indian Air Force exercises and operations, highlighting its advanced avionics, sensors, and electronic warfare capabilities. One official cited the effectiveness of the Rafale’s electronic warfare system in countering modern air-to-air missile threats.

Industrial cooperation is another central element of the proposed agreement. Dassault Aviation is expected to expand its footprint in India, including setting up facilities for maintenance, repair and overhaul of Rafale aircraft. French officials have also indicated interest in establishing an engine maintenance facility in India for the M88 engines that power the Rafale fleet.

Such a facility would be located in Hyderabad, according to officials, and would support not only Indian-operated aircraft but potentially other French-origin platforms in the region. Indian private sector companies, including the Tata Group, are expected to play a role in manufacturing and sustainment activities.

The proposed deal is being discussed against the backdrop of strengthening strategic ties between India and France. Earlier this week, India’s National Security Adviser Ajit Doval and Emmanuel Bonne, diplomatic adviser to French President Emmanuel Macron, co-chaired the 38th India–France Strategic Dialogue in New Delhi.

According to official statements, the dialogue covered defence cooperation, regional and global security issues, technology partnerships, space collaboration, and civil nuclear energy. Both sides also reviewed progress on joint defence projects and explored new opportunities for co-development and co-production.

Officials said the discussions were also aimed at preparing the ground for an upcoming visit by French President Emmanuel Macron to India, during which defence cooperation is expected to feature prominently.

India and France have steadily expanded their defence relationship over the past decade, with cooperation extending beyond aircraft to include submarines, helicopters, and joint military exercises. The Rafale programme has become a central pillar of that partnership.

While the proposed acquisition remains under discussion and has yet to receive final approval, defence analysts say it reflects India’s preference for a balanced approach that combines foreign technology with domestic manufacturing.

For the Indian Air Force, the decision is likely to shape its combat capabilities for decades to come, as it seeks to modernise its fleet while navigating an increasingly complex security environment in the Indo-Pacific region.