India Moves Ahead on Rs 3.25 Lakh Crore Rafale Deal: 114 Jets Planned, 94 to Be Made in India

India has taken a major step towards strengthening its air combat capabilities by formally issuing a Letter of Request (LoR) to France for the acquisition of 114 Rafale fighter aircraft in a government-to-government deal estimated to be worth around Rs 3.25 lakh crore.

The proposal marks one of India's largest-ever fighter aircraft procurement programmes and could significantly expand the Indian Air Force's (IAF) combat fleet while also providing a substantial boost to the country's defence manufacturing ambitions under the Make in India initiative.

What is the latest development in the Rafale deal?

According to Defence Ministry sources, India's Acquisition Wing issued the Letter of Request to the French government last week, formally initiating the next phase of negotiations for the purchase of 114 Rafale fighter jets from French aerospace manufacturer Dassault Aviation.

France is expected to respond to the Indian request within the next two to three months. Both sides are aiming to conclude negotiations and finalise the agreement within about a year.

The proposed deal is also expected to feature in discussions during Prime Minister Narendra Modi's anticipated visit to France in mid-June.

Why does India want 114 additional Rafale fighter jets?

The Indian Air Force is facing a critical shortage of fighter squadrons and has been seeking ways to rapidly enhance its combat strength. The Rafale, a 4.5-generation-plus multirole fighter aircraft, has emerged as a key component of that strategy.

India has already ordered 62 Rafale aircraft for the Air Force and Navy. If the proposed order for 114 additional jets goes through, the total number of Rafales ordered by India will rise to 176.

The Indian Navy has also expressed interest in acquiring 31 more Rafale-Marine aircraft for maritime operations. If those plans materialise, India's Rafale fleet could eventually exceed 200 aircraft.

How will the Make in India component work?

One of the most significant aspects of the proposed programme is local manufacturing.

Under the current plan, 94 of the 114 aircraft would be manufactured in India by Dassault Aviation in partnership with an Indian company. This would mark the first time that Rafale fighter jets are produced outside France.

The programme is expected to feature around 50 per cent localisation, making it one of the most ambitious defence manufacturing projects undertaken in India.

What role did the Defence Ministry play in shaping the proposal?

The proposal follows a comprehensive capability review undertaken by the Defence Ministry under Defence Secretary Rajesh Kumar Singh after he assumed office in 2024.

The study examined ways to quickly enhance the operational strength of the Indian Air Force. Following this review, the Defence Acquisition Council (DAC) approved the Air Force's proposal to acquire 114 Rafale aircraft more than four months ago.

What makes this programme different from previous fighter acquisitions?

According to Defence Secretary Rajesh Kumar Singh, the project combines government-level oversight, local manufacturing and greater operational flexibility.

"First time 'Make in India,' Rafale outside France backed up by a government-to-government agreement, no intermediaries, full transparency in the project itself, G2G significant levels of localisation, and full authority to integrate Indian weapons and Indian systems are the highlights of this programme. It also enables us to induct fighter aircraft relatively quickly because the first of the Rafale Marines will start coming in '28, and after that, over a period of time, you will see that about three-and-a-half years from now, the first of these Air Force Rafales will also start coming," the Defence Secretary had told ANI after the DAC cleared the proposal in February.

The ability to integrate indigenous weapons and systems, combined with local production and a government-to-government framework, is expected to make the programme distinct from many previous defence acquisitions.

What happens next?

The next stage will involve the French government's response to India's Letter of Request, followed by detailed commercial and technical negotiations.

Meanwhile, Indian Air Force Chief Air Chief Marshal AP Singh is currently in France and may visit Dassault Aviation's production facilities during his trip.

If negotiations proceed as planned, India and France could finalise the agreement within the next year, paving the way for one of the largest fighter aircraft manufacturing programmes ever undertaken in the country.

(With inputs from ANI)