January 16, 2026
MUMBAI – India’s proposed plan to acquire 114 Rafale fighter jets for the Indian Air Force could mark a major shift in defence manufacturing, with nearly 80 per cent of the aircraft slated to be built in India.
The discussions, still ongoing, also involve moving parts of the manufacturing ecosystem from France to India. Government sources told ANI that the focus is firmly on increasing local content and strengthening long-term operational readiness.
At the centre of the talks is a proposal to establish a Maintenance, Repair and Overhaul (MRO) facility in India. Officials believe this would significantly improve serviceability and reduce dependence on overseas support.
Local manufacturing, exports and MRO hub under discussion
Sources said cost negotiations are still underway. The French side’s pricing proposal factors in an annual inflation-linked increase of about four per cent.
With a large share of components and systems likely to be manufactured locally, officials see scope for Dassault Aviation to use Indian facilities for export orders as well. India could also emerge as an MRO hub for Rafale and other Dassault aircraft operated by countries in the region.
Sources added that the Rafale has been found best suited to meet current Indian Air Force requirements. Its serviceability is estimated at around 90 per cent, significantly higher than that of other frontline fighters, including the American F-35.
Why the Indian Air Force is pushing the Rafale case
The Indian Air Force has been advocating the acquisition of 114 Rafale jets for years, ever since the aircraft was selected through a multi-vendor tender process.
The force is currently facing a steady decline in fighter squadrons. Delays in indigenous programmes have compounded the challenge, with setbacks linked to engine availability and the integration of foreign systems into the LCA Mark 1A aircraft.
Strategic pressures are also mounting. With active fronts involving Pakistan and China, and Bangladesh emerging as a fresh security concern, officials say the IAF’s fighter squadron requirement is now exceeding the long-accepted benchmark of 42 squadrons.