India clears mega ₹3.25 lakh crore deal for 114 ‘Make in India’ Rafale Jets

India has cleared a ₹3.25 lakh crore proposal to manufacture 114 Rafale fighter jets under the Make in India initiative. The government-to-government deal with France aims to boost IAF strength, enhance indigenous defence production, and deepen strategic ties.

Post Published By: Karan Sharma
Updated : 12 February 2026, 4:04 PM IST

New Delh: In a significant development ahead of French President Emmanuel Macron’s visit to New Delhi (February 17–19), India has approved a massive defence deal for 114 Rafale fighter jets to be manufactured under the ‘Make in India’ initiative. The Defence Acquisition Council (DAC) has cleared the proposal, marking a crucial step toward what is expected to be one of the largest defence deals in the world, valued at approximately ₹3.25 lakh crore.

The decision reflects deepening strategic and defence cooperation between India and France. Like previous Rafale agreements, this deal is set to be executed as a government-to-government (G2G) arrangement.

Approval Process and Next Steps

Last month, the Defence Ministry’s Defence Procurement Board had already given initial approval to the Indian Air Force’s (IAF) proposal. With the DAC clearance in place, the project will now move to the Finance Ministry and subsequently to the Cabinet Committee on Security (CCS), chaired by the Prime Minister, for final approval.

Reports suggest that around 16 of the 114 jets may be purchased directly from France in fly-away condition, while the remaining aircraft will be manufactured in India. The induction of 114 Rafale jets could help form five to six new squadrons, as each IAF squadron typically consists of 18–20 fighter aircraft.

Indigenous Manufacturing and Strategic Shift

Under the proposed arrangement, French aerospace major Dassault Aviation is expected to partner with an Indian company to establish a manufacturing facility in India. The indigenously produced Rafale jets are likely to feature nearly 60% locally sourced weapons and equipment, significantly boosting India’s defence manufacturing ecosystem.

This move comes in the backdrop of declining squadron strength in the Indian Air Force. The new Rafale project could effectively replace the earlier Medium Weight Fighter Aircraft (MRFA) tender, which also aimed to procure 114 jets through a competitive bidding process involving multiple global manufacturers.

Operational Success Influences Decision

The decision to expand Rafale induction has also been influenced by the aircraft’s operational performance. During Operation Sindoor, carried out in response to the Pahalgam massacre, Rafale jets reportedly played a critical role in targeting terror infrastructure linked to Lashkar-e-Taiba and Jaish-e-Mohammed operating from Pakistan.

IAF Vice Chief Air Marshal Nagesh Kapoor recently described Rafale as the “hero” of Operation Sindoor, expressing hope for greater induction of the aircraft into the fleet.

Currently, the IAF operates 36 Rafale jets acquired under a 2016 deal worth around ₹59,000 crore. These aircraft are equipped with advanced Meteor, MICA, and SCALP missiles. Future India-made Rafales may also integrate indigenous missile systems.

Naval Rafale Deal Already Signed

Earlier this year, India signed a separate ₹63,000 crore deal with France to procure 26 Rafale-M (marine version) jets for deployment aboard the indigenous aircraft carrier INS Vikrant.

With this new proposal, India is poised to significantly expand its Rafale fleet, strengthening its air combat capability and advancing self-reliance in defence manufacturing.

Location : 
  • New Delhi

Published : 
  • 12 February 2026, 4:04 PM IST