The current proposal stipulates that 90 of the 114 Rafale jets are to be produced in India, while the remaining 24 will arrive in a fly-away condition
The estimated ₹3.25 lakh crore government-to-government defence deal with France for 114 Rafale fighter jets is unlikely to be announced during Prime Minister Narendra Modi’s upcoming two-day visit to Paris starting June 13. The more significant part is that the Macron government is engaging seriously with India’s demand for access to source codes, which would allow the indigenous integration of weapons and systems. Another issue under extensive consideration is India’s push to execute the entire project under the ‘Make in India’ procurement policy, French diplomatic sources said on Thursday ahead of Modi’s visit.
Make in India
The current proposal stipulates that 90 of the 114 Rafale jets are to be produced in India, while the remaining 24 will arrive in a fly-away condition. This marks a significant shift from the two earlier Rafale contracts with France. When India purchased 36 Rafales for the Indian Air Force (IAF) in 2016 and another 26 marine versions last year, all aircraft were acquired in 100 per cent fly-away condition — they were built, assembled and tested entirely in France by Dassault Aviation. This time, however, 90 of them will be manufactured in India.
“Everything is open when the two leaders sit across the table,” said French diplomatic sources, noting that India formally issued a Letter of Request (LoR) last month seeking a commercial and technical response for what will be its biggest-ever defence acquisition. “Both the French government and French companies are committed to integrating Make in India into our defence deals, including the Rafale,” said sources.
As negotiations move into the formal stages of finalising costs, Indian content and manufacturing cooperation, the bilateral procurement route is visibly evolving from a traditional client-provider relationship. “It’s not a supplier-customer relationship. Its equal to equal,” said diplomatic sources.
Defence Secretary Rajesh Kumar Singh had earlier said that Dassault Aviation had offered 40 per cent localisation during initial discussions. However, he stated that the Ministry of Defence is pushing for 50 per cent or more Indian content to boost self-reliance. For the first time, the aircraft will be manufactured outside of France.
French diplomatic sources, too, reiterated that this contract is a departure from previous defence agreements. “This Rafale deal will be different from earlier deals. Unlike the past, the integration of Indian components and weapons will be an inherent part of this contract,” said a source.
Prime Minister Modi and French President Emmanuel Macron are scheduled to hold a bilateral meeting in Nice on June 14.
The proposed acquisition is meant to fill the capacity deficiency of the IAF, which now has an existing fleet of 32 squadrons against the requirement of 40 squadrons to fight a two-front war. From 2029-30, the Rafale jets from the expected deal will start coming to India.
Published on June 11, 2026
