India’s Largest Defense Deal: Air Force to Get 114 Rafale Jets
The Defence Acquisition Council (DAC) of India on Thursday approved the proposal to purchase 114 Rafale fighter jets from France. The deal is valued at approximately ₹3.25 lakh crore.
Out of these, 18 aircraft from Dassault Aviation will be delivered in flying condition, while the remaining 96 will be manufactured in India. About 60% of the components will be indigenous. This marks India’s largest defense deal to date.
The proposal will now be sent to the Cabinet Committee on Security (CCS) for final approval. The deal is expected to be finalized during French President Emmanuel Macron's three-day visit to India from 17-19 February. The proposal had already been approved by the Defence Procurement Board on 16 January.
The new Rafale jets will enhance India’s air defense and border deployment capabilities. Additionally, the Indian Coast Guard (ICG) signed a ₹2,312 crore agreement with Hindustan Aeronautics Limited (HAL) to procure eight Dornier 228 aircraft. These aircraft will be equipped with operational systems to strengthen maritime security under the Buy (Indian) category.
Defense Budget Allocation
The 2026-27 Union Budget has allocated ₹7.8 lakh crore to the Ministry of Defence, accounting for 14.67% of the total budget. Of the ₹2.19 lakh crore earmarked for modernization, ₹1.85 lakh crore is allocated for capital procurement, representing a nearly 24% increase over the previous fiscal year.
Make in India Partnership
The deal will be executed under the 'Make in India' initiative. Dassault Aviation will collaborate with an Indian company to manufacture these jets. Recently, Dassault increased its stake in Dassault Reliance Aerospace Limited (DRAL) from 49% to 51%, a joint venture that also includes Reliance Infrastructure led by Anil Ambani.
All 114 Rafale jets will integrate Indian weapons, missiles, and ammunition. Secure data links will connect the aircraft to Indian radar and sensor systems. Dassault will also provide technology transfer (ToT) for airframe manufacturing. After ToT completion, the indigenous content of these jets is expected to reach 55–60%.
Air Force Requirement
The Indian Air Force requested 114 additional Rafale jets in September 2025. Currently, the Air Force operates 36 Rafale jets, while the Navy has ordered 26 Marine variant Rafales. A training and MRO (Maintenance, Repair, and Overhaul) center at Ambala Airbase is already operational, with the infrastructure, spare parts, and trained staff ready to induct two squadrons (36–38 aircraft) immediately.