Rafale deal: India seeks up to 50% local content from France, pushes for engine production and overhaul at home

During the 6th India-France Annual Defence Dialogue in Bengaluru, Rajnath Singh also pressed for the fighter aircraft engines to be produced and overhauled in India, saying it would strengthen the government's Make-in-India push

• India urges France to increase local content in Rafale deal to 50%
• India and France renew 10-year defence cooperation agreement
• MoU signed for Hammer missile production in India via joint venture

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Defence Minister Rajnath Singh has urged France to increase the share of India-manufactured components in the proposed deal for 114 Dassault Rafale jets to as much as 50%, a Times of India report said citing sources.

During the 6th India-France Annual Defence Dialogue in Bengaluru, Singh also pressed for the fighter aircraft engines to be produced and overhauled in India, saying it would strengthen the government's Make-in-India push.

The discussions between Singh and his French counterpart, Catherine Vautrin, covered a wide spectrum of defence and security cooperation, including co-development and co-production initiatives. India and France renewed their defence cooperation agreement for another decade, agreed on reciprocal deployment of Army officers, and signed a memorandum of understanding to manufacture Hammer missiles in India, TOI reported.

The MoU provides for local production of the precision-guided Hammer missiles through a joint venture between Bharat Electronics Limited and French defence major Safran.

Earlier in the day, Singh and Vautrin attended the inauguration of the H125 Light Utility Helicopter final assembly line at Vemagal in Karnataka. The facility has been jointly set up by Tata Advanced Systems Ltd and Airbus, with Narendra Modi and Emmanuel Macron virtually inaugurating it from Mumbai.

In a post on X following the meeting, Singh said the two sides exchanged views on defence industrial cooperation and emerging geopolitical challenges. He confirmed the renewal of the 10-year defence cooperation pact, the decision on reciprocal Army deployments, and the signing of the Hammer missile manufacturing MoU.

Speaking after the helicopter facility was inaugurated, Modi highlighted that India and France would manufacture in India the H125 helicopter - described as the only helicopter capable of operating at the altitude of Mount Everest - for both domestic use and global export. The first "Made in India" H125 is expected to be delivered in early 2027 and is intended to support Indian armed forces operations, including in high-altitude Himalayan terrain.

Singh said the H125 project is expected to attract investment exceeding Rs 1,000 crore and generate both direct and indirect employment opportunities.

In Mumbai, Macron said India and France were broadening defence collaboration across platforms ranging from Rafale jets to submarines, while also working together on helicopter assembly lines and fifth-generation fighter jet engines. His remarks came shortly after the Defence Acquisition Council, chaired by Singh, cleared the proposal to procure 114 Rafale jets from France.

Cost negotiations for the Rafale deal are expected to gather momentum following the Modi-Macron meeting, with the agreement to be signed after Cabinet approval. India is also weighing the purchase of additional Scorpene-class conventional submarines from France, having already inducted six Kalvari-class submarines.

The French defence minister also welcomed the decision to convert Exercise Shakti between the two armies from a biennial to an annual exercise, further deepening operational cooperation between the two countries, TOI reported.