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France and India are inching closer to a Rafale agreement for the Indian Air Force, ahead of the French president's visit to India in February 2026.
New Delhi is examining a government-to-government framework that combines a large IAF order with extended local manufacturing, as the service seeks to address growing gaps in its fighter inventory.
Macron will travel to India in February 2026 for an AI-focused summit, but French and Indian commentators expect defence industrial cooperation, such as the Rafale and engine partnership files, to feature prominently in sideline talks.
Talks Tied to the 114-jet MRFA Requirement
The deliberations are linked to the IAF’s long-lasting requirement for 114 modern fighters under the Multi-Role Fighter Aircraft program. At the same time, the exact number is still under debate. Reports claim that the projected requirement of 114 combat aircraft is the planning baseline.
Recently, the IAF has argued for a government-to-government Rafale order for the MRFA, citing the urgency created by squadron drawdowns and the type’s prevailing logistics and training footprint in India.
Any key obtaining would still need to pass through India’s standard approval chain, starting with the Defence Acquisition Council, followed by cost negotiations and final sign-off by the Indian Cabinet Committee on Security, accompanied by dedicated budget allocations.
Squadron Shortfall Adds Urgency
The IAF’s case for added Rafales comes as its fighter strength continues to slide. The last MiG-21s were retired by India in 2025. This decision left the service with about 29 fighter squadrons, below the authorized level of over 40.
Postponements in the induction of the Tejas Mk1A have added more pressure, prompting the IAF to consider near-term options that can be implemented swiftly and integrated with the existing infrastructure.
Local Production at the Centre of the Proposal
Domestic manufacturing is developing as the central pillar of the prospective deal. In June 2025, Tata Advanced Systems Limited and Dassault Aviation signed an agreement to produce Rafale fuselage sections at Hyderabad, the first such production line outside France. The plant will deliver its first units throughout 2028, ramping up to an output of about 24 fuselages annually for Indian and export orders.
Indian reports add that a broader industrial package is being discussed, including a partnership between HAL and Safran for an engine production plant in Hyderabad and an upkeep, repair and overhaul hub near Jewar in Uttar Pradesh, close to the forthcoming Noida International Airport.
Added steps toward localizing high-end subsystems are also ongoing. Thales newly announced a partnership with Indian firm SFO Technologies for the production of key wired structures for the Rafale’s RBE2 active electronically scanned array radar.
Rafale’s Growing Role in the Indian Air and Naval Forces
India by now operates 36 Rafales in IAF service, delivered under a 2016 inter-governmental agreement with France. In April 2025, the government signed a separate deal for 26 Rafale M carrier-borne fighters for the Indian Navy, with deliveries to be completed by 2030.
The first four Rafale M aircraft will arrive in 2029, with the following deliveries phased through 2030 and 2031, providing a standard on pricing and timelines for any larger Indian Air Force package.
Source: The Economic Times
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