In the proposed deal for 114 Rafale fighter jets for the Indian Air Force, about 80% of the aircraft are planned to be manufactured in India, with some production facilities potentially shifting from France to India.
Government sources told ANI that Indian officials are also discussing ways to maximize local content in the deal, including setting up a Maintenance, Repair, and Overhaul (MRO) facility in India to ensure high serviceability of the jets.
The cost of the project is still under negotiation. The French price offer factors in an annual inflation increase of around 4%. With significant parts and systems to be built in India, there is also the possibility of Dassault Aviation partnering with an Indian entity for exports and using Indian MRO facilities as a regional hub for Rafale and other Dassault aircraft.
Sources said the Rafale is currently the best fit for the Indian Air Force, with a serviceability rate of around 90%, higher than any other aircraft, including the American F-35.
The IAF has long advocated for purchasing 114 Rafales, selected through a multi-vendor tender, due to depleting fighter squadrons and delays in indigenous projects like the LCA Mark 1A, which face engine issues and challenges integrating foreign equipment.
With active security fronts along Pakistan and China, and rising concerns regarding Bangladesh, the IAF now requires more fighter squadrons than the previously accepted standard of 42.
