India’s defence journey has reached a pivotal point. It began with the highly debated 2016 Rafale deal. Now, the nation is exploring the possibility of producing Made in India Rafale jets. This marks a major step forward in India’s pursuit of military modernization, strategic autonomy, and self-reliance.
Over the years, India has steadily advanced its defence capabilities. With this potential shift, the country aims to reduce dependence on foreign imports and strengthen its indigenous manufacturing.
Furthermore, the deal aligns with the government’s broader ‘Make in India’ vision. It could open doors to new technology transfers, local job creation, and long-term strategic gains.
So, why do these fighter jets matter so much to India? And how could manufacturing them locally impact the future of the nation’s defence sector?
Cabinet Committee on Security Recently Signed Rafale-M Deal worth ₹63,887 crore
In April 2025, India’s Cabinet Committee on Security approved a significant defence acquisition: the purchase of 26 Rafale Marine fighter aircraft from France, valued at approximately ₹63,887 crore (around $7 billion). This agreement comprises 22 single-seat and four twin-seat trainer variants, intended primarily for operation from India’s indigenous aircraft carrier, INS Vikrant. The deal aims to enhance the Indian Navy’s operational capabilities, with deliveries expected between 37 to 65 months from the agreement date.
Flying High: The Rafale G2G Agreement That Paved the Way
The journey began in 2016 when India signed a €7.8 billion Government-to-Government (G2G) agreement with France to purchase 36 fully-assembled Rafale jets. Faced with dwindling squadron strength, the Indian Air Force (IAF) needed a rapid solution, and the Rafale jets proved to be the perfect fit—packing cutting-edge technology like Meteor air-to-air missiles, SCALP cruise missiles, and advanced avionics to ensure battlefield superiority.
The deal also included a 50% offset clause, under which Dassault Aviation, the manufacturer, committed to reinvesting nearly ₹30,000 crores into India’s defence ecosystem. This clause was a beacon of hope for the Make in India initiative, promising to involve Indian companies in the supply chain.
But while the imported Rafales filled a critical gap in the IAF’s capabilities, their cost (₹1,650 crore per jet) prompted India to think bigger: “What if we could build Rafales domestically?”
Dream Big: The Vision for “Made in India Rafale Jets”
As India inches closer to finalizing a new G2G deal for 110 Rafale jets, excitement is brewing around the possibility of manufacturing these multirole fighters locally. This deal, one of the largest Rafale procurements globally, would include:
- 84 Rafale variants for the IAF.
- 26 Rafale-M variants for the Indian Navy, to equip aircraft carriers like INS Vikrant.
The proposal seamlessly aligns with India’s emphasis on self-reliance under the Atmanirbhar Bharat initiative. Here’s what the plan looks like:
- Local Manufacturing: Dassault Aviation has proposed taking full ownership of the Dassault Reliance Aerospace Limited (DRAL) facility in Nagpur. Established in 2016, DRAL has already been producing components like fuselages and wings for Falcon business jets and Rafales. Expanding this facility to manufacture complete Rafales would mark a monumental step for India.
- Tech Transfer and Collaboration: The plan includes partnerships with Indian giants like L&T, Mahindra Group, Godrej, and Kalyani Group, alongside Snecma HAL Aerospace for engine parts. This collaboration aims to nurture a robust, integrated supply chain.
- Production Targets: Dassault aims to produce two Rafale jets a month in India, ensuring all 114 jets are delivered within five years.
Can India Soar? Challenges Ahead
While the plan for Made in India Rafale Jets is ambitious, several challenges cloud the horizon:
1. Sourcing Complexity
The Indian Ministry of Defence (MoD) has mandated that 75–100% of components must eventually be sourced locally. While this boosts domestic manufacturing, the lack of specialized suppliers and skilled labour for advanced aeronautics could slow progress. Producing cutting-edge avionics and stealth technology is no easy feat.
2. HAL’s Role in the Margins
A key sticking point is Dassault’s refusal to involve Hindustan Aeronautics Limited (HAL) in production heavily. The French manufacturer’s insistence stems from HAL’s challenges in previous fighter programs, like delays in the Medium Multi-Role Combat Aircraft (MMRCA) negotiations between 2013 and 2014. However, sidelining a state giant could lead to political pushback.
3. Costs and Timelines
Building a manufacturing ecosystem from scratch is expensive. Furthermore, the production timeline—two jets per month with full localization—might face delays, given Dassault’s struggles to meet even a 13 jets-per-year rate at its France facility.
Why India Needs This: Strategic and Economic Gains
1. Strengthening the Air Force
With just 30 operational squadrons (against an approved strength of 42.5), India requires a modern fleet to counter threats from:
- China, with its J-20 stealth fighters.
- Pakistan is equipped with upgraded F-16s and joint projects like the JF-17.
The addition of 110 Rafales would give India overwhelming air superiority in the region.
2. Local Capacity Development
From a domestic standpoint, the ‘Made in India Rafale’ project could:
- Generate over 40,000 jobs, directly and indirectly.
- Boost local firms, enabling them to integrate into global defence supply chains.
- Pave the way for India to export fighter aircraft, creating a new revenue stream.
3. Strategic Independence
By manufacturing the jets locally, India reduces its traditional reliance on foreign suppliers, strengthening national security and avoiding complications like sanctions or arms embargoes.
The Road Ahead: What’s at Stake
Here’s a look at how the ‘Made in India Rafale’ stacks up against the original G2G deal.
| Aspect | Imported Rafales (2016) | Made in India Rafale Jets |
|---|---|---|
| Cost per Unit | ₹1,650 crore | Lower (depending on scale). |
| Timeframe | Delivered by 2023. | 5+ years (dependent on DRAL). |
| Localization | Minimal offsets. | Upwards of 75%. |
| Job Creation | A few hundred (via offsets). | Over 40,000 jobs. |
| Strategic Value | Faster capabilities, dependent imports. | Long-term self-reliance. |
Conclusion: Made in India Rafale Jets Ready for Takeoff
The Made in India Rafale Jets initiative is not just about acquiring 110 fighter jets—it’s about reshaping India’s defence capabilities for decades to come. By securing cutting-edge technology through smart partnerships, upskilling its workforce, and fostering innovation in aerospace manufacturing, India has the potential to transform from one of the world’s largest arms importers to a significant player in global defence exports.
However, success hinges on overcoming significant obstacles, from meeting local sourcing requirements to ensuring smooth collaboration between Dassault and Indian firms. If executed right, this project won’t just empower the IAF—it will demonstrate India’s emergence as a global player in advanced defence technologies. The Rafale journey, from an imported airpower solution to a ‘Made in India’ marvel, is only just beginning.
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