Rafale deal may shift manufacturing to India, 80% jets to be locally built

The plan includes plans to establish a Maintenance, Repair and Overhaul (MRO) facility in India to enhance the serviceability of the aircraft

• 80 percent of 114 Rafale jets for India to be manufactured domestically
• India and France plan MRO facility and localise Rafale production
• Indian Rafale facilities may serve as export and regional MRO hub

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Under the proposed agreement to acquire 114 Rafale fighter jets for the Indian Air Force, nearly 80 percent of the aircraft are planned to be manufactured in India. The project is also expected to involve the relocation of certain manufacturing facilities from France to India.

According to government sources cited by ANI, discussions are underway between Indian and French officials to maximise localisation under the deal. This includes plans to establish a Maintenance, Repair and Overhaul (MRO) facility in India to enhance the serviceability of the aircraft. The two sides are also expected to continue negotiations on the overall cost of the project, with the French price proposal factoring in an annual inflation rate of around four per cent.

Sources said that as a significant number of Rafale components and systems are proposed to be produced domestically, there is a possibility that French defence major Dassault Aviation could use an Indian partner for export orders. Indian facilities may also be positioned as a regional MRO hub for countries operating Rafale and other Dassault aircraft.

In the current strategic context, the Rafale has been assessed as the most suitable aircraft to meet the Indian Air Force’s fighter requirements, with serviceability levels of around 90 per cent—substantially higher than that of other aircraft globally, including the American F-35, sources added.

The Indian Air Force has long advocated the acquisition of 114 Rafale jets following their selection in a multi-vendor tender, as it continues to face a steady decline in fighter squadrons. Delays in indigenous programmes, caused by engine-related challenges and integration issues involving foreign-made systems on the LCA Mark 1A, have further compounded the problem.

With India already managing active fronts with Pakistan and China, and Bangladesh emerging as an additional security concern, the number of fighter squadrons required by the Indian Air Force is now exceeding the long-standing benchmark of 42 squadrons, sources said.