India is proposing to purchase 114 locally assembled Rafale aircraft for more than Rs 2 lakh crore, with more than 60% indigenous content.
In brief
The Indian Air Force (IAF) has submitted a project to the Ministry of Defense to acquire 114 Rafale aircraft produced in India, in partnership with Dassault Aviation and Indian companies. The estimated cost exceeds Rs 2 lakh crore (≈ $22 billion), with local content of over 60%. If approved, this would bring India’s Rafale fleet to 176 aircraft. The project includes a maintenance, repair, and overhaul (MRO) facility for M-88 engines in Hyderabad, and longer-range weapons than the current Scalp missiles. This proposal is based on the Rafale’s performance during Operation Sindoor, where its electronic capabilities (Spectra suite) reportedly outperformed the Chinese PL-15 missile.
Background and basic data
The Indian Air Force has presented a Statement of Case (SoC) proposing the purchase of 114 Rafale aircraft manufactured in India, in collaboration with Dassault Aviation and local aerospace companies.
The estimated cost of this acquisition exceeds Rs 2 lakh crore (approximately 20 trillion Indian rupees), which translates into around $22 billion in Western currencies, according to several sources.
Indigenous content is expected to exceed 60%. This means that more than 60% of the components, subsystems, assemblies, and even maintenance would be produced or carried out in India.
If this contract is approved, the total Rafale fleet in the Indian armed forces would reach 176 aircraft: 36 already in service with the IAF, plus the 36 ordered for the Indian Navy, plus the new 114.
Technical performance and strategic justification
Operation Sindoor is cited as a triggering factor. During this operation, Indian Rafales confronted Chinese PL-15 air-to-air missiles, which are very long-range (Beyond Visual Range, BVR) missiles with active radar guidance.
The Rafale’s electronic capabilities, notably the Spectra EW (Electronic Warfare) suite, are said to be responsible for its superiority in these confrontations: 360° detection, missile warning, jamming, countermeasures, etc.
In addition, the new Rafales produced in India could be equipped with air-to-ground missiles with a longer range than the Scalp, the missile used until now in strikes against terrorist or military targets in Pakistan. This would allow for greater range, more tactical flexibility, and potentially greater safety for the aircraft manufacturer and pilots.
Finally, for logistical support, an MRO (Maintenance, Repair & Overhaul) center for the Rafale’s M-88 engines is expected to be set up in Hyderabad. This would reduce delays, maintenance costs, parts imports, and external dependence.
Approval process and proposed timeline
The SoC has already been submitted to the Indian Ministry of Defense. Several departments involved are examining the financial, technical, and strategic aspects.
The next step is review by the Defense Procurement Board (DPB) headed by the Secretary of Defense. Then, after validation, the file will go to the Defense Acquisition Council (DAC) for final approval.
The timetable has not yet been publicly announced, but sources say discussions will take place in the “coming weeks.”
Industrial and technological impacts
One of the expected benefits of this project is the strengthening of the Indian aerospace sector. Involving companies such as Tata in production and assembly, as well as in the supply of components, would stimulate local skills, skilled jobs, and the local supply chain.
The establishment of an MRO hub for M-88 engines in Hyderabad will have a dual effect: local maintenance, reduced logistics delays, and the possibility of export or service for other nations using similar engines.
Technically, the local content level of over 60% requires advanced manufacturing capabilities: high-precision machining, electronics, avionics, software, testing, and validation. This means that India must invest not only in factories but also in research and development (R&D), standards, certifications, and flight testing.
Another industrial impact: the long-range weapons to be integrated into these new Rafales will have to be produced or partially produced in India, or at least assembled or modified locally. This intensifies the need for a technological base for rockets, explosives, guidance, on-board electronics, etc.
Strategic consequences
Militarily, increasing the Rafale fleet to 176 aircraft allows for greater projection, improved border coverage, and increased deterrence against modern air threats—whether from Pakistan or China.
Superiority in electronic warfare, demonstrated according to reports in Operation Sindoor, could change the tactical calculations of adversaries: long-range missiles would be less effective against an opponent capable of countering, jamming, or neutralizing them.
From a geopolitical perspective, such an agreement strengthens India’s strategic independence, in line with the Atmanirbhar Bharat (self-reliance) policy. It reduces dependence on foreign countries for critical technologies.
There are also risks: local development, manufacturing, certifications, on-time deliveries, lifetime logistics support costs, personnel training, and quality maintenance. If critical components still have to be imported, the risk that local content will not actually be achieved or maintained remains high.
Cost per aircraft and international comparison
According to available figures, the unit cost (flyaway plus infrastructure, initial maintenance, equipment) would be high. One article compares this market to approximately $22 billion for 114 aircraft, which would give an average cost of approximately $193 million per aircraft with the entire package included.
By way of comparison, other modern or 4.5 generation (or even early 5th generation) fighters have a lower unit cost in certain markets if the infrastructure is less sophisticated, if the volume is higher, or if local production is low. The advantage here is that India is seeking a high level of electronic performance, weaponry, and logistical support, which partly justifies the cost.
Challenges to be overcome
- Achieving local content: reaching more than 60% requires many local industries to already be capable of producing highly sophisticated components. In some cases, this can lead to delays or additional costs if current capabilities are insufficient.
- Delivery time: Local production, supply chain setup, certification, and testing often slow down initial production rates.
- Long-term logistical support: Engines, wear parts, maintenance, training.
- Budget and financing: Rs 2 lakh crore is a huge amount. Public funding, annual costs, and the life cycle (maintenance, modernization, replacement) must be secured over several decades.
- Technological risks: electronic countermeasures, electronic warfare, PL-15 missiles or equivalent advanced weapons in enemy countries require constant system updates.
If the project is approved, India’s air capabilities could cross a threshold.
In the medium term (5-10 years), this could mean locally produced Rafales deployed at several bases, with a local maintenance network and reduced delays.
In the longer term (beyond 2035), this fits in with India’s plans for a locally developed fifth-generation fighter aircraft. The Rafale project helps to bridge the current gap and prepares the skills, infrastructure, and processes for this future aircraft.
War Wings Daily is an independant magazine.