In a move that fundamentally reshapes the future of the Indian Air Force (IAF), the Defence Acquisition Council (DAC), led by Defence Minister Rajnath Singh, granted Acceptance of Necessity (AoN) on February 12, 2026, for the procurement of 114 Rafale fighter jets. Valued at approximately ₹3.25 lakh crore ($36 billion), the deal is the cornerstone of a broader ₹3.6 lakh crore defense modernization package.
The approval comes just days before French President Emmanuel Macron’s state visit to India (February 17-19), signaling a massive leap in the Indo-French strategic partnership.
The “Make in India” Mandate: 96 Jets to be Built Locally
Unlike the previous “fly-away” contract for 36 jets, this mega-deal is centered on domestic manufacturing. Under the Multi-Role Fighter Aircraft (MRFA) framework, the production will be split to balance immediate needs with long-term self-reliance.
| Delivery Mode | Number of Jets | Details |
| Fly-Away Condition | 18 | Supplied directly by Dassault Aviation from France. |
| Manufactured in India | 96 | To be built in partnership with Indian private players (likely Tata/HAL). |
| Total Order | 114 | Consisting of 88 single-seat and 26 twin-seat variants. |
Indigenous Content Targets:
Initial negotiations had set a 30% local content floor, but officials have confirmed that this will be raised to 50–60% during commercial negotiations. This includes the integration of Indian-made weaponry like the Astra Mk2/Mk3 and RudraM missiles, alongside local secure data links.
Why the Rafale? Addressing the “Squadron Crisis”
The IAF’s fighter strength has plummeted to 29 squadrons, far below the sanctioned 42.5 squadrons required for a two-front defense against China and Pakistan. With the retirement of legacy MiG-21s and aging Jaguars, the Rafale was chosen as the “fastest route to air superiority.”
- Commonality of Fleet: India already operates 36 Rafales in the IAF and has ordered 26 Rafale-Marine variants for the Navy. Adding 114 more minimizes training, maintenance, and logistical overhead.
- Force Multiplier: The 4.5-generation jet is equipped with the Meteor beyond-visual-range missile and SCALP cruise missiles, both of which proved critical during Operation Sindoor in early 2025.
- Strategic Buffer: The deal bridges the “capability gap” until India’s indigenous 5th-generation AMCA (Advanced Medium Combat Aircraft) and Tejas Mk2 reach full production.
Economic Impact: An MRO Hub for Asia
The massive scale of this order—which will make India the world’s largest user of the Rafale with over 175 aircraft—is expected to birth a regional Maintenance, Repair, and Overhaul (MRO) hub. With neighboring countries like the UAE also operating large Rafale fleets, India is positioned to become a central servicing station for the platform in Asia.
What’s Next?
The AoN is the first formal step. The deal will now move to:
- Cabinet Committee on Security (CCS): Final financial approval.
- Inter-Governmental Agreement (IGA): Potential signing during Macron’s visit next week.
- Technical Negotiations: Finalizing the specific “India-Specific Enhancements” (ISE).
