
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…
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.

The celebratory tone around French investment often skips over one hard question: how much Indian technology will actually enter these jets. The deal's true test is not total aircraft numbers but the level of indigenous content in each Rafale, including the Astra missile integration. Until contract clauses specify localisation percentages, the 'Make in India' label remains a marketing phrase. Watch the final ratio of local to imported components, that number will settle whether this is real manufacturing or just assembly by another name.
Source: businesstoday.in
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