In a development that could redefine India’s defence and aerospace trajectory, French aviation giant Dassault Aviation has offered to manufacture its Rafale fighter jets entirely in India. The plan goes far beyond token offsets or partial assembly. It envisions India as a global production and maintenance hub for the 4.5-generation combat aircraft—placing the country on the cusp of achieving true Atmanirbharta, or self-reliance, in defence.
This unprecedented offer, now under review by India’s Defence Procurement Board, comes at a critical juncture. The Indian Air Force (IAF) is currently operating with roughly 31 active fighter squadrons, well below its sanctioned strength of 42. Given the evolving threat landscape—potential two-front conflict with China and Pakistan—the gap is a strategic vulnerability. Dassault’s proposal not only aims to fill this capability shortfall but also dovetails with India’s long-delayed Multi-Role Fighter Aircraft (MRFA) tender for 114 jets.
If accepted, the project could be the single largest infusion of aerospace technology and defence-industrial capability into India’s ecosystem since independence.
At the heart of Dassault’s proposal is a multi-tiered manufacturing and sustainment network spanning Nagpur, Hyderabad, and other key Indian cities. The plan is not incremental but transformative, moving from component fabrication to the delivery of combat-ready aircraft with export potential.
The Dassault Reliance Aerospace Limited (DRAL) facility at MIHAN Special Economic Zone in Nagpur, currently engaged in component work like wings and fuselage sections, will be upgraded for final assembly. The proposal envisions producing two complete Rafale jets per month at peak capacity. This would cover the Indian Air Force’s requirements while simultaneously fulfilling export orders—such as Indonesia’s recent deal for 42 Rafales.
For India, this would mean no longer shipping aircraft in flyaway condition from France but rolling them out from an Indian assembly line, akin to what Lockheed Martin and Boeing operate in the United States.
In a first for Dassault, the entire Rafale fuselage will be manufactured outside France. Tata Advanced Systems Limited (TASL), already a rising force in aerospace production, will take on this responsibility at a newly constructed facility in Hyderabad.
Agreements signed in June 2025 cleared the way for technology transfer, with production scheduled to commence in 2028. The Hyderabad plant is expected to produce up to 24 fuselages annually. This milestone alone will bring nearly 60% of the Rafale’s production value chain into India—an unprecedented level of localisation.
French engine manufacturer Safran, which powers the Rafale with its M-88 turbofan engine, will also deepen its Indian footprint. Plans are underway for an engine assembly line in India, along with a Maintenance, Repair, and Overhaul (MRO) facility in Hyderabad.
The MRO hub, expected to be operational by 2026, will service not only the IAF’s 36 Rafales and the 26 naval variants recently cleared for induction but also the future MRFA fleet. This reduces dependence on France for long-term sustainment and cuts operational costs significantly.
Taken together, these moves represent the largest-ever transfer of aerospace manufacturing capability to India—something successive governments have pursued but rarely achieved.
For the Indian Air Force, the Rafale proposal arrives not a moment too soon. With just 31 active fighter squadrons against a sanctioned strength of 42, the shortfall is alarming. The IAF’s fleet is a mixed bag: aging MiG-21s are on their way out, Sukhoi Su-30MKIs require upgrades, and the indigenous Tejas is entering squadron service slowly.
The induction of 114 new fighters under MRFA is meant to bridge this gap. Dassault’s offer of localised Rafale production, with the ability to deliver all 114 within six years, provides the IAF with the fastest route to regaining squadron strength.
By comparison, competitors in the MRFA race—the American F-15EX, F/A-18 Super Hornet, Lockheed’s F-21 (a rebranded F-16 for India), and the Eurofighter Typhoon—would require longer induction timelines and face the challenge of creating a similar production base in India from scratch.
Dassault’s offer includes the Rafale F4 standard, an upgrade over the F3R variant currently operated by the IAF. The F4 package brings advanced AESA radar, improved SPECTRA electronic warfare systems, and enhanced network-centric warfare capabilities.
But perhaps the most crucial component is weapons integration. For the first time, Rafales produced in India will be armed with indigenous systems.
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Astra family: Beyond-visual-range air-to-air missiles developed by DRDO, giving India control over aerial combat engagement ranges.
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Rudram series: Anti-radiation missiles designed to neutralise enemy air defence radars, bolstering suppression-of-enemy-air-defence (SEAD) missions.
This shift reduces dependence on French-origin weapons like the MICA or SCALP, making India less vulnerable to supply chain or sanction risks. In effect, the Rafale becomes a hybrid aircraft—French airframe, Indian weapons—tailored for subcontinental requirements.
Dassault and Safran’s roadmap doesn’t stop at the F4 standard. The offer includes a vision for upgrades that could keep the Rafale combat-relevant for decades.
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Manned-Unmanned Teaming (MUM-T): Rafale pilots could control swarms of drones like the HAL CATS Hunter, multiplying combat effectiveness.
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Enhanced propulsion: An option exists to equip Rafales with a 120 kN engine, co-developed by Safran and India’s Gas Turbine Research Establishment (GTRE). This same engine is intended for India’s Advanced Medium Combat Aircraft (AMCA) project, creating synergy between platforms.
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Future avionics: Modular architecture is planned to accommodate upgrades in sensors, AI-assisted decision-making, and electronic warfare.
Such provisions ensure that Indian Rafales will not become static museum pieces but evolve as threats change.
Beyond military strategy, Dassault’s offer carries sweeping economic consequences. Local production is expected to cut procurement costs by 20–30%, saving billions of dollars. Thousands of direct and indirect jobs will be created across assembly, manufacturing, maintenance, and supply chains.
For India’s private aerospace sector, this could be the long-awaited catalyst. DRAL in Nagpur, TASL in Hyderabad, and Safran’s facilities will anchor a web of small and medium enterprises feeding into the Rafale supply chain. Many of these SMEs could later pivot to serve global aerospace markets.
Export potential is another major prize. If India can build Rafales at scale and competitive cost, it could become the global production base for Dassault. Indonesia’s 42 Rafales could be just the beginning, with Egypt, Greece, and other buyers lined up. For the first time, India would not only produce sophisticated fighter jets for itself but also export them.
The MRFA competition has drawn in heavyweights. The U.S. pitches of the F-15EX, F/A-18, and F-21 bring strong technology but limited Make-in-India commitments. The Eurofighter Typhoon, while advanced, struggles with geopolitical cohesion among its multiple partner nations.
Rafale, on the other hand, enjoys a critical advantage: operational familiarity. The IAF already operates 36 Rafales, with established pilot training pipelines, logistics chains, and combat doctrine. Extending this ecosystem is far more seamless than starting afresh with a different aircraft.
Add to this Dassault’s unparalleled willingness to localise production and share technology, and the Rafale proposal stands apart as not just a fighter acquisition but an industrial revolution.
Despite its promise, the proposal faces hurdles.
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Cost negotiations: Even with local production, Rafales are expensive. Ensuring affordability without compromising capability will be a sticking point.
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Timeline realism: Delivering 114 fighters in six years would require flawless execution across India’s still-maturing aerospace industry.
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Geopolitical calculus: Deeper dependence on France must be balanced with strategic partnerships with the U.S., Russia, and indigenous programs like the Tejas and AMCA.
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Technology transfer assurances: India has been promised tech transfer before, often only to receive limited access. Ensuring genuine capability-building is vital.
For decades, India has spoken of self-reliance in defence but relied on imports for its most critical platforms. Dassault’s Rafale offer, if pursued to its fullest, represents the closest India has come to breaking that cycle.
A jet fighter is more than a machine—it is a confluence of metallurgy, avionics, propulsion, and weapons integration at the highest level of human engineering. To indigenise even a fraction of that ecosystem marks a strategic leap.
For the IAF, the payoff is immediate: regaining squadron strength, operating cutting-edge platforms customised with indigenous weapons, and preparing for future air combat paradigms.
For India’s economy, the gains are structural: technology infusion, job creation, and a defence export industry with global credibility.
And for the broader strategic canvas, it is a recalibration of India’s place in the world—a shift from being the world’s largest arms importer to a hub of aerospace innovation and production.
India now stands at a crossroads. Accepting Dassault’s offer could accelerate its journey toward aerospace self-reliance and plug critical defence gaps. Rejecting it, or allowing negotiations to languish, risks perpetuating the very vulnerabilities the proposal seeks to address.
The stakes could not be higher. At a time when global geopolitics is marked by uncertainty, supply chain disruptions, and new-age warfare, the ability to produce advanced combat aircraft at home is not a luxury but a necessity.
