Big update in Rafale deal: India begins process to procure 114 jets for Rs 3.25 lakh crore

NEW DELHI: India has formally begun the process of acquiring 114 Rafale fighter jets from France in a deal estimated to be worth around Rs 3.25 lakh crore, marking a major step in one of the country's largest-ever military procurement programmes.

According to defence ministry sources cited by ANI, the Acquisition Wing of the Ministry of Defence issued a Letter of Request (LoR) to the French government last week, initiating the government-to-government process for the proposed purchase. The French side is expected to respond within the next two to three months, with negotiations likely to be completed and the agreement finalised within a year, ANI reported.

The proposed acquisition forms part of the Indian Air Force's Multi-Role Fighter Aircraft (MRFA) programme, which aims to address the service's declining fighter squadron strength. The IAF currently operates 36 Rafale jets procured under the 2016 India-France agreement and is facing a significant capability gap, with its fighter strength falling to around 29 squadrons against the sanctioned requirement of 42.5.

Under the proposed deal, the majority of the aircraft will be manufactured in India through a partnership between French aerospace company Dassault Aviation and an Indian firm under the Make in India initiative. Defence officials have indicated that around 90 to 94 aircraft could be built domestically, while the remaining jets would be supplied directly from France. The programme is expected to achieve nearly 50 per cent localisation.

The project would also mark a milestone for the Rafale programme, as it would be the first time the fighter aircraft is manufactured outside France. Officials have said the agreement will allow India to integrate indigenous weapons and systems into the aircraft while ensuring a transparent procurement process without intermediaries.

The move comes ahead of Prime Minister Narendra Modi's expected visit to France in mid-June and coincides with Indian Air Force chief Air Chief Marshal A P Singh's visit to the country, where he is expected to engage with French defence officials and Dassault facilities.