'Made-In-India' Rafale Jets Soon? Govt Reviewing IAF's Rs 2 Lakh Crore Proposal

Last Updated:September 12, 2025, 23:07 IST

According to defence officials, the proposal includes more than 60% indigenous content and could become the largest defence deal ever

The proposal comes shortly after the Rafale fighter jets were praised for their strong performance during Operation Sindoor. (PTI file photo)

The Defence Ministry has started reviewing a major proposal from the Indian Air Force (IAF) to acquire 114 ‘Made in India’ Rafale fighter jets. The project, worth over ₹2 lakh crore, would involve French defence firm Dassault Aviation working in partnership with Indian aerospace companies.

According to defence officials, the proposal includes more than 60% indigenous content and could become the largest defence deal ever signed by the Indian government. The Defence Procurement Board (DPB), headed by the Defence Secretary, is expected to take up the proposal in the coming weeks. After that, it will go to the Defence Acquisition Council for final clearance.

“The Statement of Case (SoC) from the IAF was submitted to the ministry recently and is currently under review by various departments, including Defence Finance," officials told news agency ANI.

If cleared, this deal would bring the total number of Rafales in India’s defence fleet to 176. The IAF already operates 36 Rafales, and the Indian Navy has ordered another 36 under separate government-to-government agreements.

The proposal comes shortly after the Rafale fighter jets were praised for their strong performance during Operation Sindoor, where they reportedly outmatched Pakistan’s Chinese-origin PL-15 air-to-air missiles using their advanced Spectra electronic warfare system.

The new jets to be made in India are also expected to feature longer-range air-to-ground missiles compared to the Scalp missile, which was used effectively in recent operations.

Dassault Aviation is also planning to set up a Maintenance, Repair and Overhaul (MRO) facility for the M-88 engines that power the Rafales. This facility is expected to be located in Hyderabad. Indian companies, including Tata Group, are likely to play a key role in the local manufacturing and support infrastructure.

With growing regional security challenges, India is looking to strengthen its air power. The future fleet is expected to include Su-30 MKIs, Rafales, and domestically developed fighter jets. India has already placed orders for 180 LCA Mark 1A jets and is planning to induct a fifth-generation indigenous fighter jet by 2035.

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