Brainstorming in Defense Ministry: 114 Rafales worth ₹3.25 lakh crore will be the biggest defense deal

India is preparing for formal discussions on a major defense deal this week. The Ministry of Defense (MoD) will discuss in a high-level meeting the proposal related to the purchase of 114 Rafale fighter aircraft from France, the estimated cost of which is said to be around ₹3.25 lakh crore. If this proposal goes ahead and is approved, it will be India’s largest defense deal ever.

According to sources, this proposal also includes a provision for direct purchase of 12 to 18 Rafale aircraft in ‘fly-away condition’ for the Indian Air Force (IAF), so that the operational capability can be strengthened rapidly. The remaining aircraft will be manufactured and integrated under the ‘Make in India’ framework. In this government-to-government (G2G) deal, India is also demanding from the French side that Indian weapon systems and other indigenous systems be integrated into the Rafale aircraft, although the source code of the aircraft will remain with France.

Generally ‘Make in India’ defense deals stipulate 50 to 60 percent indigenous content, but in the case of Rafale this ratio is likely to be around 30 percent. If the deal is approved, the total number of Rafale aircraft in the Indian Armed Forces will increase to 176. The Indian Air Force already has 36 Rafales, while the Indian Navy ordered 26 Rafale Marine aircraft last year.

According to Defense Ministry officials, the ‘Statement of Case’ (SoC) prepared by the Indian Air Force has been submitted to the ministry a few months ago. After the approval of the Ministry, this proposal will be placed before the Cabinet Committee on Security (CCS) for final approval.

Why Rafale?

The decision to go ahead with this proposal has come after the decisive performance of Rafale aircraft during Operation Sindoor. In this operation, Rafale, with the help of its Spectra electronic warfare suite, showed effective capability against the Chinese PL-15 air-to-air missiles used by the Pakistani side. This is being seen as the operational edge of the Air Force.

The French side is also planning to set up a maintenance, repair and overhaul (MRO) facility for Rafale’s M-88 engines in India, with its hub likely to be in Hyderabad. Dassault Aviation has already set up a unit in India to maintain French-origin fighter aircraft. Participation of Indian aerospace companies like Tata is also possible in this scheme.

Regional security and future strategy

India is in urgent need of a large number of fighter aircraft considering the regional security scenario. In the future, the IAF’s fighter fleet is planned to be based mainly on Su-30MKI, Rafale and indigenous fighter aircraft. India has already ordered 180 LCA Tejas Mark-1A aircraft and plans to induct a larger number of indigenous fifth-generation fighter jets after 2035.

Notably, India’s deal with France comes despite both the US and Russia introducing their fifth-generation fighter aircraft—the American F-35 and the Russian Su-57—to the Indian Air Force. According to experts, India’s focus on Rafale comes due to its operational experience, quick availability and better integration with the existing fleet.

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