In one of the most consequential military modernization decisions in recent years, India’s Defence Acquisition Council (DAC) has approved the acquisition of 114 additional Rafale fighter jets for the Indian Air Force (IAF), six more P-8I long-range maritime patrol aircraft for the Indian Navy, and advanced discussions on a flagship indigenous marine gas turbine engine program under the Make-I category.
The decisions mark a strategic pivot toward reinforcing India’s air and maritime dominance amid intensifying regional military competition, while also accelerating the “Atmanirbhar Bharat” (self-reliant India) push in critical defence technologies.
The DAC’s Acceptance of Necessity (AoN) for these programs moves them to the next crucial stage — issuance of the Request for Proposal (RFP) to vendors, followed by technical evaluations, potential field trials, commercial negotiations, and final approval by the Cabinet Committee on Security (CCS) before contract signature.
In 2025 alone, the DAC has approved capital acquisition proposals exceeding Rs 3 lakh crore (approximately $35 billion), with a strong emphasis on indigenous manufacturing and technology transfer.
The proposal for 114 Rafale jets under the IAF’s Multi-Role Fighter Aircraft (MRFA) program is designed to address a critical capability gap. As of late 2025, the IAF fields only 29 fighter squadrons against an authorized strength of 42.5.
The new Rafale induction aims to arrest the steady decline in squadron numbers caused by the retirement of MiG-21, MiG-27, and aging Jaguar fleets, as well as delays in indigenous programs.
The 114-aircraft deal — often described as the “mother-of-all-deals” — is valued at around Rs 3.25 lakh crore ($35 billion). It is expected to include:
88 single-seat variants
26 twin-seat variants
Of these, 18 aircraft are likely to be delivered in fly-away condition, while the remaining 96 would be manufactured in India with up to 60 percent indigenous content.
The timing is politically and diplomatically significant, coinciding with French President Emmanuel Macron’s visit to India for the AI Summit beginning February 17, reinforcing the deep strategic partnership between New Delhi and Paris.
India initially acquired 36 Rafale F3R fighters under a €7.87 billion government-to-government deal signed in 2016. Built by Dassault Aviation, the Rafale platform integrates air superiority, deep strike, nuclear delivery, and electronic warfare roles.
The Indian Rafales are heavily customized with India-Specific Enhancements, including Israeli helmet-mounted displays, integration of Spice-1000 glide bombs, cold-start capability for high-altitude bases like Leh, Indian SATCOM systems, and compatibility with indigenous Astra missiles.
The current fleet is of F3R standard. Under the new proposal:
90 aircraft are expected to be Rafale F4 variants
24 aircraft may be the next-generation Rafale F5
The F4 standard improves onboard processing, connectivity, and electronic warfare capabilities. It upgrades the Thales SPECTRA self-defence suite and enhances the RBE2 AESA radar for improved detection of low-observable targets.
The F4 variant enables advanced network-centric warfare and will integrate Indian weapons such as Astra Mk-2 BVR missiles.
The first F4 aircraft were delivered to the French Air and Space Force in 2023, and the UAE became the first export customer.
Rafale F5 – Bridging to Sixth Generation
The F5 standard, expected around 2030, represents a transformational leap. It will incorporate:
Upgraded SPECTRA EW for SEAD/DEAD missions
Fibre-optic data buses for high-bandwidth connectivity
Loyal wingman drone integration
AI-assisted sensor fusion
Hypersonic missile compatibility
Powered by the enhanced M88 T-REX engine delivering nearly 20 percent greater thrust, the F5 variant approaches sixth-generation capability benchmarks without being a full stealth platform.
The F5 will also be able to carry advanced munitions such as SCALP and Meteor upgrades and potentially the ASN4G hypersonic nuclear missile.
France sees strong global demand for Rafale F5 among nations unable to acquire the F-35 due to geopolitical constraints.
The scale of the 114-aircraft deal makes it commercially viable to establish a full Rafale assembly line in India, likely in Nagpur. Dassault has already partnered with Tata Advanced Systems Limited to manufacture Rafale fuselage sections in Hyderabad, targeting up to 24 airframes annually.
France’s Safran is establishing a dedicated MRO facility in Hyderabad for the M88 engines. A domestic assembly line would reduce lifecycle costs, increase fleet availability, and position India as a potential export hub for Rafale components.
With Dassault increasing production from 2 aircraft per month to 3 — and targeting 4 per month — Indian participation could further boost global output.
As of late 2025, the Rafale program has 533 firm orders worldwide, with 233 yet to be delivered.
The Rafale expansion comes amid rapidly shifting regional airpower dynamics.
China fields nearly 400 J-20 fifth-generation fighters. Pakistan operates J-10C fighters armed with PL-15 long-range BVR missiles and has sought acquisition of the Chinese J-35 fifth-generation aircraft.
The US recently approved a $686 million F-16 upgrade package for Pakistan, extending the fleet’s life to 2040.
In this context, expanding the Rafale fleet ensures credible deterrence across both western and northern fronts, while bridging the gap until India’s indigenous Advanced Medium Combat Aircraft (AMCA) enters service.
Safran and India’s DRDO are jointly developing a 120 kN engine for AMCA with full Indian intellectual property rights — a landmark step toward aero-engine independence.
The DAC also cleared the Indian Navy’s long-pending proposal to procure six additional P-8I maritime patrol aircraft from the United States via the Foreign Military Sales (FMS) route.
The Indian Navy currently operates 12 P-8Is, a customized variant of the P-8A Poseidon built by Boeing. The additional six aircraft will strengthen surveillance and anti-submarine warfare capabilities in the Indian Ocean Region (IOR).
The P-8I features the Raytheon APY-10 radar, Telephonics APS-143 OceanEye aft radar, and a Magnetic Anomaly Detector (MAD), enhancing submarine detection.
Armed with AGM-84L Harpoon Block II missiles and Mark 54 torpedoes, the aircraft provides ISR, ASW, and anti-surface warfare capability.
The P-8I has proven operational value — from search operations for Malaysia Airlines Flight 370 in 2014 to surveillance during the 2017 Doklam standoff and 2019 Pulwama crisis.
With China increasing naval deployments in the IOR, maritime domain awareness has become central to India’s deterrence posture.
Senior US DoD and Boeing officials visited India in September 2025 for detailed talks. The $3 billion deal is expected to be finalized in the next financial year.
Perhaps the most transformative decision discussed by the DAC is the development of a 24–28 MW marine gas turbine under the Make-I category.
Currently, India depends heavily on imported propulsion systems, including the GE LM2500 (US) and Ukrainian Zorya engines. Over 90 percent of marine engines above 6 MW are imported.
Under Make-I provisions of the Defence Acquisition Procedure (DAP) 2020:
The government provides 70 percent funding for prototype development
Up to ₹250 crore per agency is allocated
Four prototype engines are planned
The Indian Navy is working with DRDO’s Gas Turbine Research Establishment (GTRE), Bharat Heavy Electricals Limited (BHEL), and Hindustan Aeronautics Limited (HAL).
With 54 naval vessels under construction and a projected fleet exceeding 200 ships by 2035, indigenous propulsion is critical to maritime sovereignty.
Parallel efforts include a 6 MW marine diesel engine project with Kirloskar Oil Engines Limited and exploration of full electric propulsion for future warships.
India aims to be among the world’s top five shipbuilders by 2047, and propulsion independence is central to that vision.
The DAC’s approvals reflect a coherent, multi-domain strategy:
Air superiority via 114 advanced Rafales
Maritime dominance through expanded P-8I fleet
Long-term industrial sovereignty via indigenous marine gas turbines
The Rafale F4 and F5 variants — with AI-assisted sensor fusion, loyal-wingman integration, advanced EW, and hypersonic capability — will position India near sixth-generation operational standards by 2030.
Meanwhile, domestic assembly and engine development will deepen India’s aerospace ecosystem and feed into AMCA.
India’s future fighter fleet is not merely about numbers. It represents operational credibility, geopolitical signaling, and industrial transformation.
With these approvals, India is not only reinforcing deterrence against the China-Pakistan axis but also reshaping its defence-industrial base for decades to come.
