# France proposes local production of 94 Rafales in Rs 3.25 lakh crore deal

2026-08-08T03:33:31+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

France has proposed a Rs 3.25 lakh crore deal to supply 114 Rafale fighter jets to India, with 94 aircraft to be manufactured domestically by Dassault Aviation. The plan would create one of India's largest defence production programmes, with Indian companies like Tata and Larsen & Toubro expected to participate in a supply chain worth around Rs 1.6 lakh crore. Business Today reports the proposal comes as the Indian Air Force faces declining squadron strength due to retiring MiG aircraft and delays in indigenous platforms. The deal would expand India's total Rafale fleet to 176 aircraft, including 62 already ordered by the Air Force and Navy. Officials will scrutinise the integration of indigenous systems such as Astra beyond-visual-range missiles and the level of local content offered by France. The proposal arrives at a critical moment for India's combat readiness and aerospace ecosystem.

## Coverage

- businesstoday.in <https://www.businesstoday.in/latest/photo/rs3-25-lakh-crore-rafale-deal-frances-india-plan-changes-the-fighter-jet-game-548028-2026-08-07?utm_source=rssfeed>

Tags: defence manufacturing, fighter jets, France-India, Indian Air Force, Make in India, Rafale deal
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