New Delhi: While holding talks with France over the next 2-3 days for the purchase of 114 more Rafale fighter jets for the Indian Air Force (IAF), India will lay down non-negotiable clauses for manufacturer Dassault, including transfer of technology (ToT) and integration of Indian weapons systems.
This deal, if it takes place, will be worth nearly Rs 3.25 lakh crore, making it India’s largest-ever defence procurement. With the procurement of 114 new aircraft, India will have 176 Rafales. The IAF already has 36 of these fighter jets while the Indian Navy has ordered 26 Rafale-M aircraft for INS Vikrant.
The non-negotiables include integration of Indian weapons, missiles and ammunition on all 114 jets, as reported by The Tribune. Dassault will provide secure data links to allow digital integration of the jets with Indian radars and sensors sending imagery to ground-based controllers. The source codes will remain with the French side though.
Once it accepts these clauses, the manufacturer will have to weave in a seamless command system for weapons and also for sending and receiving data. Dassault will need to introduce changes to the software of the onboard computing system of the jet.
Sources have said that the manufacturer will be providing ToT for making air frames. Its suppliers like engine maker Safran and avionics provider Thales will be part of the ToT. The indigenous content is expected to be between 55 per cent and 60 per cent once ToT for air frames, engines and avionics is done.
Avionics, weapons and missiles on the Rafale have been upgraded since IAF ordered its fleet of 36 in 2015. The IAF flies what is the ‘F3R’ version of the plane, same as the French air force. Dassault Aviation has introduced the ‘F-4’ version – an upgrade. India is seeking a mix of the ‘F-4’ version and upcoming ‘F-5’ version, it has been reported.
The upgrade includes the next generation of active electronically scanned array (AESA) radar for longer detection range and improved resilience to electronic warfare. The aircraft will also have a better self-protection system to detect and counter new and emerging threats. Capabilities would include better long-range detection and identification of enemy threats backed by missiles with longer ranges. It is to be mated with better satellite links and even have artificial intelligence algorithms to assist the pilot with improved situational awareness and decision-making.
The Ministry of Defence is set to finalise the $8 billion deal for filling gaps in air power. Thereafter, clearance will be required from the Cabinet Committee on Security (CCS).
The jets will be available under the ‘Make in India’ scheme with Dassault aviation partnering with an Indian firm, it has been said. In September last year, Dassault increased its shareholding in Dassault Reliance Aerospace Limited (DRAL) from 49 per cent to 51 per cent, making the joint venture a majority-owned subsidiary of the French company. Anil Ambani led Reliance Infrastructure is also a partner in DRAL.
While 12-18 of the jets are likely to be procured in fly-away condition, the remaining will be made in India. A Rafale flight training and maintenance, repair and overhaul (MRO) facility is already functional at the Air Force Station Ambala. French engine maker Safran, announced an MRO hub for its engines in Hyderabad in June 2025.
The IAF is in desperate need of aircraft with the number of squadrons falling to 29, as compared to the sanctioned 42. It has also ordered 180 Tejas Mark 1A jets from Hindustan Aeronautics Ltd (HAL). There are also plans to induct an indigenously developed fifth-generation fighter post 2035.
