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India Weighs 114-Rafale Deal With Local Production and Strict Sovereignty Terms

Officials say talks now center on Indian production, technology transfer and weapon integration, with an Acceptance of Necessity expected later this year.

Overview

  • Government officials report active discussions on an Indian Air Force plan to acquire 114 Rafale fighters at an estimated cost of about ₹3.25 lakh crore.
  • Under the working model, 18 aircraft would arrive in fly-away condition while 96 would be built in India, with indigenous content reported in the 30–60% range and some reports suggesting a higher target.
  • New Delhi has set non-negotiable conditions that include integrating Indian weapons across the fleet, providing secure data links for digital interoperability, and transferring airframe know-how with supplier participation from Safran and Thales.
  • One report cites sources saying transfer of source code is being demanded to ensure future integration and interoperability, though final contract terms have not been approved.
  • The procurement push comes as IAF squadron strength hovers near 29–30 against an authorized 42, with industry groundwork such as a DassaultTASL fuselage line in Hyderabad slated to supply from 2028.