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India prepares for history’s most ambitious defence leap as the Defence Procurement Board weighs a ₹2 lakh crore IAF proposal for 114 ‘Made in India’ Rafale jets with 60% indigenous power and a world-class MRO hub in Hyderabad

The Ministry of Defence has now received and begun discussions on a key proposal from the Indian Air Force (IAF) for acquiring 114 Rafale fighter jets that would be ‘Made in India’. These jets are to be built by French manufacturer Dassault Aviation with significant participation from Indian aerospace companies.
The move comes at a critical time, as the IAF is working to replenish its shrinking fleet of fighter jets while simultaneously boosting India’s domestic aerospace industry. According to defence officials, the Defence Procurement Board (DPB) is soon expected to examine this proposal, which emphasizes high indigenous content. The overall cost is estimated at over ₹2 lakh crore, making it one of the most ambitious defence projects in the country’s history.
The proposal is currently under review within the Ministry of Defence, where multiple divisions, including the Defence Finance wing, are scrutinizing it. Once the initial assessment is complete, it will be sent to the DPB, headed by the Defence Secretary. After this stage, it will move on to the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, before seeking final approval from the Union Government’s Cabinet Committee on Security. If cleared, this deal would not only represent India’s largest-ever defence procurement but also serve as a landmark for the ‘Make in India’ initiative.
Defence establishment sources have indicated that the Rafales built in India are expected to feature more than 60 percent indigenous components. The aircraft will be produced in collaboration between Dassault Aviation and leading Indian firms, including Tata, marking a significant step forward for local manufacturing.
Officials described the proposal in formal terms, stating: “The Statement of Case (SoC) or the proposal for the 114 Rafale jets prepared by the Indian Air Force was received by the Defence Ministry a few days ago and is under consideration of the different wings under it, including Defence Finance. After deliberations, the proposal would then be moved to the DPB, followed by the Defence Acquisition Council,” defence officials told ANI.
If approved, the Rafale acquisition would increase the total number of aircraft in India’s defence fleet to 176, adding to the 36 Rafales already inducted by the IAF and the 36 ordered separately by the Indian Navy through government-to-government arrangements.
This advancement comes shortly after the Rafale showcased its superiority during Operation Sindoor, where it outperformed Pakistani forces. Reports highlighted how the Rafale’s Spectra electronic warfare suite effectively countered the Chinese PL-15 air-to-air missile, demonstrating its advanced capabilities in real combat scenarios.
The new Rafales built in India are also expected to be equipped with next-generation, longer-range air-to-ground missiles, surpassing the existing Scalp missile system. These upgrades would provide the IAF with enhanced strike capabilities, allowing precision targeting of both military and terrorist bases in hostile regions.
As part of the industrial setup, Dassault Aviation also plans to establish a Maintenance, Repair and Overhaul (MRO) facility in Hyderabad for the Rafale’s M-88 engines. This addition is designed to ensure long-term support for the fleet and further strengthen the domestic aerospace ecosystem. Dassault has already formed a dedicated unit to handle maintenance of French-origin fighter jets, while Indian partners like Tata are expected to play a crucial role in the manufacturing process.
The need for this deal is reinforced by India’s urgent requirement to expand and modernize its fighter jet capacity in view of escalating regional threats. Going forward, the IAF’s structure is likely to be dominated by three main categories: Su-30 MKIs, Rafales, and indigenous aircraft. The country has already placed orders for 180 LCA Tejas Mark 1A jets and is also preparing to induct a fifth-generation indigenous fighter aircraft in substantial numbers beyond 2035.
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MRO facility
In line with the broader industrial collaboration, Dassault Aviation has proposed to establish a dedicated Maintenance, Repair and Overhaul (MRO) hub in Hyderabad for the Rafale’s powerful M-88 engines. This facility is aimed at creating long-term sustainability and reducing dependence on foreign bases for servicing advanced fighter jets.
With the induction of a new batch of 114 Rafales, the Indian Air Force’s existing fleet of 36 jets would expand dramatically. Additionally, the Indian Navy has already ordered 36 Rafale Marine variants under a direct government-to-government deal. Together, these acquisitions would raise India’s total Rafale strength to 176 aircraft, placing it among the most powerful air combat fleets in Asia.
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Regional security
The urgency surrounding this proposal is closely linked to the rising regional security challenges faced by India. The Rafale’s recent track record in Operation Sindoor, where it decisively outperformed Pakistan’s air defence systems, has only strengthened the case for its expansion.
The India-built Rafales are expected to carry longer-range air-to-ground missiles, surpassing the capabilities of the Scalp missile, which has already proven effective in neutralizing high-value targets inside Pakistan.
India’s long-term air power roadmap is shaping up around three pillars — the trusted Su-30 MKIs, the cutting-edge Rafales, and indigenously designed fighter jets. Orders have already been placed for 180 LCA Tejas Mk1A units, while plans are underway to induct India’s homegrown fifth-generation combat aircraft post-2035.
For defence planners, the proposed Rafale acquisition is not just a matter of strengthening the Air Force but also a key step toward achieving greater self-reliance in defence production.
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