India Plans Biggest-Ever Defence Deal: 114 Rafale Jets on the Table

India is set to move forward on a massive defence acquisition as the Ministry of Defence is expected to take up discussions this week on a proposed deal to procure 114 Rafale fighter jets from France , a package estimated at around Rs 3.25 lakh crore , according to senior defence sources. The jets are planned to be produced largely in India under a structured arrangement that combines direct deliveries with domestic manufacturing, aimed at strengthening India’s fighter fleet and boosting the local aerospace ecosystem.

Officials said the proposal includes the production of Rafale aircraft in India with about 30% indigenous content in the initial phase , though this localisation level could rise significantly as manufacturing and supply chains mature. Under the plan, 12–18 Rafale jets may be supplied in fly-away condition to the Indian Air Force (IAF) to meet urgent operational needs, while the rest will be built in India. Defence experts say the urgency is linked to the IAF’s long-standing concern over declining squadron strength and the need to rapidly modernise ageing fleets.

The procurement is expected to follow a Government-to-Government (G2G) framework between India and France. India has reportedly insisted that the Rafale fleet be configured with the ability to integrate Indian-origin weapons and indigenous systems , though sources indicate that the source codes would remain with the French side due to proprietary and security restrictions. Despite alternative offers made to India, including fifth-generation platforms such as the US F-35 and Russia’s Su-57 , India appears to be moving ahead with the Rafale option, largely due to its existing operational experience with the aircraft and its proven capabilities.

If the deal gets approved, it could emerge as India’s largest-ever defence procurement . The Indian Air Force already operates 36 Rafale jets , inducted in recent years, and the Indian Navy has also moved ahead with the acquisition of 26 Rafale-M aircraft for carrier operations. With the proposed 114 jets, India’s total Rafale inventory could reach 176 aircraft , creating a wider common ecosystem across services and improving maintenance and logistics efficiency over the long term.

The proposal had been formally submitted earlier through the Indian Air Force’s Statement of Case (SoC) . Following discussions at the Defence Ministry and internal approvals, the project is expected to move to the Cabinet Committee on Security (CCS) for final clearance. The proposal gained additional momentum after reports highlighted Rafale’s strong operational performance during Operation Sindoor , where its SPECTRA electronic warfare suite was said to have enhanced survivability against advanced missile threats.

A major value addition to the deal is its industrial and maintenance dimension, which is expected to deepen India-France aerospace collaboration. Reports indicate that French companies are planning to expand the Rafale support ecosystem in India. Safran , the manufacturer of Rafale’s M88 engines , is linked to plans for a dedicated Maintenance, Repair and Overhaul (MRO) capability in Hyderabad , which would significantly reduce dependence on overseas engine servicing and speed up turnaround time for operational readiness.

Further strengthening the localisation push, Dassault Aviation’s production chain is also expected to see deeper Indian participation. Reports say Tata Advanced Systems and Dassault are building an ecosystem for manufacturing key Rafale structures in India, with Hyderabad emerging as a critical hub. This is seen as a major step because it expands India’s role beyond assembly into higher-value aerospace manufacturing, while also enabling long-term supply-chain integration for components and subsystems.

Defence planners note that the fighter aircraft induction is becoming increasingly critical due to the evolving security environment in the region. The IAF’s future combat fleet is expected to be anchored around the Su-30MKI , Rafale , and India’s indigenous fighter programmes. India has already placed orders for 180 LCA Tejas Mk-1A aircraft , and the country is also working toward inducting an indigenous fifth-generation fighter aircraft in large numbers after 2035 , as part of longer-term air power modernisation plans.