New Delhi, Jan 14, 2026, 22:25 IST
- India is set to discuss a proposed purchase of 114 Rafale jets, valued at roughly ₹3.25 trillion, according to media reports
- Reports indicate that 12–18 jets might be purchased ready-to-fly, with the majority assembled in India through a government-to-government deal
- Shares of Dassault Aviation, Thales and Safran slipped in Paris at the close
India’s defence ministry is set to hold internal talks on a proposed deal to buy 114 Rafale fighter jets from France, valued at about ₹3.25 lakh crore, news agency ANI reported Wednesday. A high-level meeting scheduled for this week could greenlight what would become the country’s largest defence purchase to date.
The move comes as the Indian Air Force seeks quicker fleet expansions to stave off a worsening fighter deficit. At the same time, New Delhi is pushing foreign vendors to ramp up manufacturing and after-sales services within India, rather than merely supplying aircraft.
For France’s Dassault Aviation, the maker of the Rafale, landing a deal of this size would secure production for years and expand its presence in India. Dassault shares fell 0.9% in Paris, with Thales and Safran also slipping 0.4% and 1.7%, per Investing.com data. Investing.com
The plan under discussion calls for 12–18 “fly-away” aircraft—built overseas and delivered ready to operate—with the remainder produced in India featuring about 30% indigenous content, including local parts and labor, Hindustan Times reported, citing defence sources. India is seeking French assistance to integrate Indian weapons and systems, though the source codes would remain with France. The report also mentioned competing bids like the U.S. F-35 and Russia’s Su-57. Hindustan Times
ThePrint reported that India and France have largely settled the details, including setting up a final assembly line in Nagpur and gradually boosting indigenous content to around 60%. The deal could be signed by late 2026 or early 2027, with deliveries kicking off in 2030. Dassault’s Rafale backlog was at 220 jets by the end of 2025. ThePrint
Dassault has been laying the groundwork for an expanded Rafale programme. Last year, it increased its stake in the joint venture with Reliance Infrastructure by 2%, pushing its ownership to 51% and turning the unit into a subsidiary, according to a Reuters report.
Another angle in the discussions is sustainment. ANI reported France intends to set up a maintenance, repair, and overhaul facility for Rafale’s M-88 engines in Hyderabad. This could bring more Indian aerospace companies into the fold throughout the aircraft’s service life.
India’s air force currently flies 36 Rafales, with the navy placing an order for 26 more last year, according to Indian reports. Air Chief Marshal A P Singh commented in October that “Rafale is easy to absorb” as the service considers its options for the multi-role fighter programme. The Indian Express
The proposal remains just that—a proposal. Negotiations over fighter jets can drag on due to technology transfer, local-content requirements, and details around software access. Recent reports have also cast doubt on whether France will budge beyond its 30% limit on technology transfer. EURASIAN TIMES
Timing remains a major unknown. The size of the order backlog and how quickly production scales up will dictate delivery schedules. That’s where things get complicated — mixing industrial challenges with political factors and budget constraints.
Up next is the ministry’s meeting schedule. Should officials approve the air force’s purchase request, the plan heads to cabinet-level clearance. Only then can negotiators nail down price, industrial workshare, and delivery timelines.
