India Reviews ₹2 Lakh Crore Rafale Manufacturing Proposal

The Indian Defence Ministry has initiated discussions on a proposal from the Indian Air Force (IAF) to acquire 114 'Made in India' Rafale fighter jets, to be manufactured by French firm Dassault Aviation in collaboration with Indian aerospace companies. Valued at over ₹2 lakh crore, the deal, with over 60% indigenous content, is poised to be the largest defence contract in India’s history. The proposal, recently submitted as a Statement of Case, is under review by various ministry wings, including Defence Finance, and is expected to be discussed by the Defence Procurement Board, chaired by the Defence Secretary, in the coming weeks, before moving to the Defence Acquisition Council.

The acquisition will bolster India’s air defence capabilities, increasing the Rafale fleet to 176 aircraft, with 36 already inducted by the IAF and 36 ordered by the Indian Navy through government-to-government deals. The move follows the Rafale’s standout performance in Operation Sindoor, where its Spectra Electronic Warfare suite effectively countered Pakistan’s Chinese-made PL-15 air-to-air missiles. The new jets will feature enhanced long-range air-to-ground missiles, surpassing the capabilities of the existing Scalp missiles used against military and terrorist targets in Pakistan.

Dassault Aviation plans to establish a Maintenance, Repair, and Overhaul facility for the Rafale’s M-88 engines in Hyderabad, while Indian firms like Tata are expected to contribute to manufacturing. The project aligns with India’s push for self-reliance in defence, with over 60% indigenous content, addressing the urgent need to strengthen the IAF amid rising regional threats.

Also Read: Shots Fired at Disha Patani’s Home, Gang Issues Warning

The IAF’s fighter jet strategy will primarily rely on Su-30 MKIs, Rafales, and indigenous projects like the 180 LCA Mark 1A jets already ordered and plans for fifth-generation fighters beyond 2035. The proposed deal underscores India’s commitment to modernising its air force while fostering domestic defence manufacturing capabilities.

Also Read: Delhi Drafts Climate-Focused Drainage Master Plan To Tackle Future Rainfall