In a decisive move to address the depleting squadron strength of the Indian Air Force (IAF), the Ministry of Defence is scheduled to discuss a massive ₹3.25 lakh crore proposal this week. The deal for 114 Multi-Role Fighter Aircraft (MRFA) is expected to follow a Government-to-Government (G2G) route with France, ensuring that the majority of these advanced jets are built on Indian soil.
The “Make in India” Blueprint
The current proposal marks a significant shift from previous acquisitions. Unlike the 2016 emergency purchase of 36 fly-away jets, the new 114-jet order is centered on domestic production and technology transfer.
- Domestic Production: Out of the 114 jets, 96 are planned to be manufactured in India (approx. 80%), while the remaining 18 will arrive in “fly-away” condition from France.
- The Tata-Dassault Partnership: Tata Advanced Systems Limited (TASL) is the frontrunner to lead domestic manufacturing.6 A dedicated facility in Hyderabad is already being prepared to produce key structural sections, including the fuselage, from 2028 onwards.
- Local Content: While initial indigenous content is pegged at 30%, officials expect this to rise to 60% as the production line matures and Indian-made weapons are integrated.
Why the Rafale? Performance in “Operation Sindoor”
The IAF’s preference for the Rafale has been bolstered by its reported performance in recent regional skirmishes.
- Electronic Warfare Mastery: The Rafale’s SPECTRA suite reportedly proved highly effective during Operation Sindoor (May 2025), where it successfully countered advanced Chinese-made PL-15 air-to-air missiles.
- High Serviceability: With a serviceability rate of nearly 90%, the Rafale significantly outperforms other global competitors, including the F-35 and Su-57, in terms of operational readiness.
- Future-Proofing: The new order will include the latest F4 standard and eventually the F5 variant, which features advanced AI-driven avionics and compatibility with hypersonic weapons.
Economic and Strategic Impact
If cleared by the Cabinet Committee on Security (CCS), this will become the largest defense deal in India’s history.
| Feature | Details of the 2026 Rafale Proposal |
| Total Deal Value | ~₹3.25 Lakh Crore ($39 Billion) |
| Total Number of Jets | 114 (90 F4 Variants + 24 F5 Options) |
| Manufacturing Split | 18 Fly-away / 96 Made in India |
| MRO Hub | Maintenance facility for M-88 engines in Hyderabad |
| Total Rafale Fleet | Projected 176 (including Navy’s Rafale-M) |
Conclusion
The decision to pursue a direct G2G deal with France allows the IAF to skip the protracted multi-vendor tender process that has delayed the MRFA program for years. By insisting on 80% domestic manufacturing, India is not just buying a fighter jet; it is building a high-tech aerospace ecosystem that could eventually serve as a regional export hub for Dassault Aviation.


