
The Defence Procurement Board has approved a proposal to acquire 114 Rafale fighter jets, defence sources told News18. If cleared at later stages, the deal is expected to help narrow the gap between the Indian Air Force’s sanctioned squadron strength and its current operational levels, the sources said.
As of now, the Indian Air Force operates 36 Rafale fighter jets and remains short of its overall sanctioned squadron strength. Sources said the Indian Air Force backed the aircraft since it already operates and maintains the Rafale fleet.
The proposal also provides for the integration of Indian weapons systems and the transfer of technology to enable production in India.
Chaired by the defence secretary, the Defence Procurement Board vets proposals before forwarding them to the Defence Acquisition Council for further approval.
Sources cited in the News18 report described the latest clearance as a key milestone in the acquisition process, though further approvals remain pending. Once completed, the deal would raise India’s Rafale fleet to 176 aircraft.
Proposal under consideration since 2025
In September 2025, the Ministry of Defence started reviewing an Indian Air Force proposal for the acquisition of 114 ‘Made in India’ Rafale fighter jets.
According to an ANI report, the project -- estimated to cost over Rs 2 lakh crore -- envisions Dassault Aviation collaborating with Indian aerospace companies.
At the time, defence officials told ANI that the proposal included more than 60 per cent indigenous content and could emerge as the largest defence contract signed by the Indian government. Officials had then said the case would be examined by the Defence Procurement Board before being sent to the Defence Acquisition Council for final clearance, following standard procurement norms.
The move to take the proposal ahead came shortly after Rafale fighter jets were praised for their strong performance during Operation Sindoor, India’s response to the April 2025 Pahalgam terror attack.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.