In a landmark development for India’s national security, the Defence Procurement Board (DPB) officially cleared a mega proposal on January 16, 2026, to acquire 114 Rafale fighter jets from France’s Dassault Aviation.
Valued at approximately ₹3.25 lakh crore ($36 billion), this deal aims to arrest the Indian Air Force’s (IAF) alarming depletion of fighter squadrons, which currently stand at 29 against a sanctioned 42.
The project, under the Multi-Role Fighter Aircraft (MRFA) framework, emphasizes ‘Make in India’ with nearly 90% of the fleet to be built locally. Final negotiations are expected to gain momentum during French President Emmanuel Macron’s upcoming visit to India in February.
Addressing Airpower Vacuum
The Indian Air Force has long sounded the alarm over its shrinking combat fleet as legacy Russian-origin MiG-21s and other ageing platforms reach their sunset years. This new clearance for 114 jets is a strategic pivot to ensure India can effectively manage a potential two-front challenge.
While the IAF already operates 36 Rafale jets and the Navy has ordered 26 maritime variants, this massive expansion will bring the total Rafale count to 176.
By sticking with a proven platform, the military hopes to save billions in training, maintenance, and logistical infrastructure that is already operational at bases like Ambala and Hasimara.
Make in India
Unlike previous deals, this acquisition carries a heavy industrial mandate. According to the proposal, only 12 to 18 jets will be delivered in ‘fly-away’ condition from France, while the remaining 96 aircraft must be manufactured within India.
Major Indian firms like Tata Advanced Systems and Mahindra are expected to play pivotal roles in this aerospace ecosystem. A final assembly line is slated for Nagpur, while a dedicated engine maintenance hub is planned for Hyderabad.
This initiative is designed not just to buy planes, but to transform India into a global hub for aerospace manufacturing and high-tech job creation.
30% localisation in a ₹3.25 lakh crore ($35–39 Bn) #Rafale deal is not #MakeInIndia. It is Make-in-France with Indian money, effectively funding #France’s #RafaleF5 program.
— IDU (@defencealerts) January 13, 2026
With only 30% localisation, far below the usual 60%, India will remain heavily dependent on France for… pic.twitter.com/crmoTg7Ogj
Sovereignty Concerns
India has reportedly set “non-negotiable” terms for this deal, demanding the full integration of indigenous weapons like the Astra air-to-air missile and secure Indian data links. While France has agreed to a significant 30% to 50% indigenous content requirement, a point of contention remains the “source code.”
Access to these codes is vital for India to independently upgrade the jets’ software in the future. Defence Secretary Rajesh Kumar Singh, who headed the DPB meeting, emphasized that the current roadmap prioritizes operational readiness while ensuring that the massive financial outlay benefits the domestic defence industry through substantial technology transfers.
The Logical Indian’s Perspective
At The Logical Indian, we recognize the undeniable necessity of a strong defence to safeguard our nation’s sovereignty and the lives of those who protect it. However, a ₹3.25 lakh crore investment is a staggering sum that belongs to the taxpayers.
We believe that such military milestones should be accompanied by equal transparency and a commitment to ensuring that ‘Make in India’ truly empowers local MSMEs rather than just global giants. True security is built on a foundation of both a strong military and a thriving, educated, and healthy citizenry.

