India and France have reached an understanding on the broad modalities for the procurement of 114 Rafale F4 fighter aircraft for the Indian Air Force (IAF), with official formalities expected to be completed by the end of 2026 or early 2027, stated an official report.
As per a report from The Print, the proposed project, which will cost about Rs 3.25 lakh crore, would entail procurement of 18 aircraft in fly away condition and the rest manufactured in India with up to 60 percent indigenous content, achieved in phases just like the C-295 transport aircraft. The Tejas aircraft currently has an indigenous content of 62 percent.
The contract will also include an option to upgrade Indian Rafale aircraft to the F5 standard when it becomes available. In addition, all existing Rafale fighters in IAF service will be upgraded to the F4 standard as part of the deal.
The F4 standard focuses on significantly enhancing the Rafale’s connectivity through new satellite and intra-flight data links, communication servers and software-defined radios. These upgrades are aimed at improving the aircraft’s effectiveness in net-centric warfare and preparing it for integration with the Future Combat Air System (FCAS).
The Rafale fleet currently in Indian service is of the F3-R plus version, all of which will be upgraded to the latest standard, sources in the defence establishment told ThePrint. The IAF’s Rafales also feature 13 India-specific enhancements, placing them a notch above the standard F3 variants.
According to sources, final costing and detailed terms will be worked out once the project receives the “Acceptance of Necessity (AON)” and subsequent procedural clearances. They added that a recent high-level meeting between Indian and French officials finalised the broad contours of the agreement.
If the deal is signed in early 2027, deliveries of the first 18 fly-away aircraft are expected to begin from 2030 onwards.
Sources indicated that an announcement expressing India’s intent to procure additional Rafale fighters could be made during the visit of French President Emanuel Macron next month, mirroring the announcement made during Prime Minister Narendra Modi’s visit to France in 2015.
While that announcement was made in 2015, the actual contract was signed only in late 2016 after prolonged negotiations and formalities.
In the present case, however, officials believe the contract signing will be significantly expedited since the major parameters have already been agreed upon and only formal processes remain.
It is learnt that the final assembly line (FAL) for the Rafale will be established at the Dassault Reliance Aerospace Limited (DRAL) facility in Nagpur. DRAL is now a subsidiary of Dassault Aviation, the French aerospace major that manufactures the fighter jet. In September last year, Dassault Aviation acquired a majority stake in the joint venture.
Sources added that Anil Ambani-led Reliance may sell its remaining minority stake to another Indian company, following which DRAL could be renamed, if the plans move forward.
Several Indian firms—including TATA, Mahindra and Dynamatic Technologies Limited, along with over three dozen other companies—are expected to participate in the Rafale programme. TATA has already secured a contract to manufacture Rafale fuselages for Dassault’s foreign orders.
The Nagpur FAL is expected not only to meet Indian requirements but also to serve global Rafale demand, effectively becoming Dassault Aviation’s second manufacturing hub after France.
Sources said India’s total Rafale numbers could increase over time. Dassault Aviation currently has the capacity to manufacture 25 aircraft annually, with plans to scale this up to 50. The Indian FAL, once operational, is expected to have a production capacity of 24 aircraft per year.
As of 31 December, 2025, Dassault Aviation had a backlog of 220 Rafale aircraft—175 for export customers and 45 for France—compared to the same total backlog a year earlier, which comprised 164 export and 56 French aircraft.
While Dassault is currently producing the Rafale F4 standard, India is opting for specific upgrades to the Spectra electronic warfare system. This customised configuration will be designated as “F4 Star or F4*”.
The Print was the first to report in April last year that the Indian government had decided to proceed with the acquisition of 114 Rafale fighters for the IAF, with the formal process to begin later in the year.
In the second half of 2025, the IAF formally submitted its proposal to acquire the aircraft, triggering discussions at both the Defence Ministry and government-to-government levels.
In September, The Print reported that the Rafale contract was being planned for signing in 2026, with the cost then estimated at around Rs 2 lakh crore. That figure has since risen to Rs 3.25 lakh crore.
Dassault Aviation is also setting up a Maintenance, Repair and Overhaul (MRO) facility in India and has committed to making the country a global manufacturing and maintenance hub for the Rafale, alongside its facilities in France.
With the deal, India will emerge as the largest operator of Rafale aircraft outside France. The country had earlier purchased 36 Rafale fighters in 2016 and placed an order for 26 Rafale Marine aircraft for the Indian Navy last year.
