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India Weighs ₹3.25 Lakh Crore Plan to Buy 114 Rafale Jets From France

The proposal links a large government-to-government purchase to phased local production to help rebuild the Air Force’s fighter strength.

Overview

  • A high-level Defence Ministry meeting this week is set to take up the IAF’s Statement of Case for 114 Rafales, a package valued at about ₹3.25 lakh crore that includes 12–18 jets in fly-away condition for early induction.
  • Most aircraft are slated to be manufactured in India with roughly 30% indigenous content initially, and India is seeking integration of domestic weapons and systems while France retains source code control.
  • The acquisition is not approved yet and must still clear the Defence Acquisition Council, proceed through cost negotiations, and receive final sign-off from the Cabinet Committee on Security.
  • Industrial plans highlighted in recent reporting include TASL’s Hyderabad fuselage line and MRO/engine support in India, with ThePrint reporting that modalities are broadly agreed, a final assembly line is planned in Nagpur, and initial fly-away deliveries could begin from 2030.
  • If cleared, the deal would be India’s largest defence procurement and would raise the combined IAF and Navy Rafale fleets to 176 aircraft, helping address squadron shortfalls following MiG-21 retirements.