Banking On Rafale Jets, France On Track To Dethrone Russia As India’s Top Defense Partner With $24B Deal

The Indian Air Force (IAF) has proposed an acquisition of 114 “Made in India” Rafale fighter jets to the Ministry of Defence (MoD). If accepted, will it come as a massive blow to Russia, which has been counting on the IAF’s purchase of the Su-57 stealth fighter to revive its export potential?

The deal for Rafale is estimated to cost 2 lakh crore, or about a whopping $23.8 billion. The jets will feature 60% indigenous content and will be built in the country by Dassault Aviation and an Indian firm under the ‘Make in India’ scheme, according to reports.

The proposal was received by the MoD a few days ago and is currently under consideration by the different wings within the ministry, including the Defense Finance. For the deal to go through, the IAF proposal would have to be cleared by the Defence Procurement Board (DPB), the Defence Acquisition Council (DAC), and finally the Cabinet Committee on Security (CCS), which is headed by the Prime Minister.

The IAF has reportedly called upon the MoD to bypass the Multi Role Fighter Aircraft (MRFA) program to directly opt for the Rafale, according to reports.

Though the selection of Rafale by the IAF triggered a wave of jubilation across the Indian defense community, it may have come as a major dampener for Russia, which has been aggressively pitching the Su-57E stealth aircraft to India for a long time.

As previously reported by the EurAsian Times, Russia sweetened the existing deal earlier this year by offering: local production of Su-57E, modernization of the Su-30MKI, and assistance with India’s own fifth-generation Advanced Medium Combat Aircraft (AMCA) program, which is currently facing gross delays.

The new offer was made to New Delhi as Russia struggled to export its most advanced fighter jet amid suspicions regarding its stealth, production delays, and Moscow’s occupation with the Ukraine War.

The potential purchase of Su-57 by India would have turned things around by injecting billions into Russia’s sanctions-hit economy. But more importantly, India’s acquisition of Su-57 would have served as a powerful endorsement, attracting buyers from the Global South who are denied access to US fifth-gen fighters, like the F-35, due to political restrictions or high costs, as recently explained by the EurAsian Times in a detailed report.

While the Defence Ministry or the Indian Air Force refrained from publicly discussing the Su-57 offer, Russia seemed to be upbeat with optimism. Russian officials were reportedly exploring investment plans to manufacture the Su-57 in India earlier this month, including a potential partnership with the state-owned Hindustan Aeronautics Limited (HAL).

Notably, the IAF’s selection of Rafale comes weeks after reports in the Indian media, citing insider sources, indicated that India was considering the purchase of two to three squadrons of a fifth-generation fighter as a stopgap solution until the AMCA is ready for induction.

Biggest Contract For Dassault Aviation!

India’s proposed purchase of 114 Rafale multi-role fighter jets from France’s Dassault Aviation will be one of the largest defense deals in the country’s history, bringing the total Rafales in the IAF’s fleet to 150 and making India the largest operator of the aircraft outside of France.

The acquisition of a multi-role fighter jet has been under consideration for a long time. Once the MiG-21s fly into the sunset this month, the IAF would be left with just 29 squadrons of fighter jets against the sanctioned 42.

French Rafale fighter jets sit on the main deck of the nuclear-powered aircraft carrier Charles de Gaulle, during its anchor at the Mormugao Port, in Goa on January 4, 2025, as part of a joint Indo-French naval exercise Varuna. (Photo by Punit PARANJPE / AFP)

The IAF’s preference for the French aircraft is based on multiple factors.

For one, the IAF has operated several French-origin aircraft through the decades, starting from the MD-450 Ouragan ‘Toofani’ to Mystère IVA during the Cold War era, and later on to Anglo-French Jaguar and Dassault Mirage 2000, both of which are still in service.

Moreover, France is one of India’s most trusted strategic defense partners, which has stood by it even when countries like the US sanctioned it, as earlier noted by Air Marshal Anil Chopra (retd).

Second, Rafale was one of the leading platforms used in Operation Sindoor and was instrumental in launching stand-off attacks on targets inside Pakistan.

Despite Pakistan’s claims of downing the aircraft using its long-range PL-15E missile fired from the J-10C, Indian defense officials have maintained that the aircraft performed stunningly well, despite losing one jet due to a technical failure.

Third, India will have a stellar deal that aligns with its ‘Make in India’ policy. Dassault Aviation would collaborate with Indian partners, such as Tata Advanced Systems Limited (TASL) or Dassault Reliance Aerospace Limited, where Dassault holds a 51% stake. 

Earlier this year, Dassault and TASL signed four Production Transfer Agreements to manufacture the Rafale fighter aircraft fuselage in India. Under the scope of the partnership, TASL will set up a cutting-edge production facility in Hyderabad for the manufacture of key structural sections of the Rafale, including the lateral shells of the rear fuselage, the complete rear section, the central fuselage, and the front section.

Separately, France-based Safran Aerospace announced plans in June to establish the Safran Aircraft Engine Services India in Hyderabad. This facility would be tasked with maintenance and overhaul of Rafale fighter jet engines, specifically the M88.

safran
Safran’s M-88 engine that powers the Rafale at a defence exhibition

The establishment of these production sites in India would mark a significant step in technology absorption and strengthen India’s strategic autonomy by increasing its role in the global defence supply chain.

Currently, a full transfer of sensitive components like engine and avionics source codes remains contentious, as France has so far resisted sharing these to protect intellectual property and prevent reverse engineering or leaks.

IAF veterans say that India must request access to the Rafale’s source code to integrate indigenous weapons systems, even if it means giving sovereign guarantees to protect French proprietary technology.

Fourth, the defense cooperation between India and France has reached unprecedented levels. The Indian government is poised to approve a significant defense partnership between the French aerospace behemoth Safran SA and the Gas Turbine Research Establishment (GTRE) of the Defence Research and Development Organization (DRDO) for the joint design and production of a potent 120-kilonewton jet engine that will power the nation’s twin-engine Advanced Medium Combat Aircraft (AMCA).

If approved, Safran-GTRE will develop at least nine prototypes, starting with 120 kN thrust and upgrading to 140 kN through enhancements in combustion, turbines, and materials.

India realized the hard way that the import of foreign engines, such as the GE F404 that powers Tejas, is a crucial handicap, as it gives the supplier the ability to sabotage India’s domestically developed fighter jet program.

Fifth, the IAF had earlier selected the Rafale for its Medium Multi-Role Combat Aircraft (MMRCA). Rafale and Eurofighter were shortlisted based on technical evaluation, the IAF announced in April 2011.

Rafale was later identified as the lowest bidder, L1, and protracted contract negotiations began. As per the tender, 18 aircraft were to be purchased in fly-away condition, and the remaining 108 were to be manufactured by the public sector aircraft maker Hindustan Aeronautics Limited (HAL).

However, Dassault was reluctant to work with HAL. In September 2016, the Indian government decided to scrap the deal and opted for 36 Rafales in flyaway condition as an emergency procurement.

This proves that Rafale was always the first and the best choice for the IAF. Moreover, there has been a broad consensus among experts and veterans regarding the acquisition of Rafale, instead of going through a lengthy, time-consuming contest.

Speaking to the EurAsian Times earlier, Air Marshal M. Matheswaran (retired), who oversaw the tendering process of 126 MMRCA for the IAF, said that not going ahead with the contract despite a long-drawn acquisition process was not the right decision.

“High-value defense contracts should be government-to-government as we have to keep the national interest paramount and not prove to the world that our tendering system is the best,” Air Marshal Matheswaran argued. “Those who meet our requirements and are ready for ToT should be asked to come and manufacture in India. There is no other way to give a boost to our industry and get a highly skilled workforce.”

This is what the IAF is currently proposing: the government-to-government (G2G) route. Additionally, analysts have also made the case for upgrading the existing Rafales to the F4 standard, making them more lethal and increasing their life span into the 2040s.

Sixth, the IAF’s preference would also be influenced by the fact that it already operates the Rafale and the Indian Navy is now in the process of buying 26 Rafale-Marine. Expanding that fleet would enhance interoperability and simplify logistics across the IAF and Navy through economies of scale.

France is already among India’s top defense suppliers. According to the SIPRI 2025 report, France (33%) was India’s second-largest defense supplier for the period 2020-2024, closely behind Russia, which supplied 36% of India’s arms imports.

If this deal goes through, France appears on track to surpass Russia as India’s biggest defense partner.