Dassault-TATA Fuselage Deal and Safran’s M88 Engine MRO in India Positions Rafale as Frontrunner for MRFA Competition

French aerospace leader Dassault Aviation has substantially strengthened its proposal for the Indian Air Force’s (IAF) upcoming Multi-Role Fighter Aircraft (MRFA) tender by establishing major industrial partnerships in India.

A landmark agreement with Tata Advanced Systems Limited (TASL) to manufacture Rafale fighter jet fuselages and a commitment from engine maker Safran to create a comprehensive maintenance facility in India significantly enhance the Rafale's standing in the competition to supply 114 new aircraft.

These developments align with the Indian government's "Make in India" and "Atmanirbhar Bharat" policies, positioning Dassault not just as a seller but as a strategic partner in developing India's indigenous aerospace and defence ecosystem.

On June 5, 2025, Dassault Aviation and TASL officially signed agreements to produce Rafale fuselages at a new facility in Hyderabad. This marks the first time that this critical airframe component will be manufactured outside of France.

The state-of-the-art plant is scheduled to deliver its first fuselage sections in 2028, with a projected production capacity of up to two complete fuselages per month, or 24 annually.

This capacity will support India’s existing Rafale fleet, potential new orders under the MRFA program, and also integrate India into Dassault’s global supply chain.

The facility will produce key sections of the fuselage for both the IAF variant and the Rafale-M jets for the Indian Navy.

This manufacturing agreement follows the nearly €7 billion deal signed in April 2025 for 26 Rafale-M naval fighters, which included provisions for Transfer of Technology (ToT) to establish local production. This ensures that a portion of the naval jets will be equipped with fuselages made in India.

The new Tata partnership builds upon an existing industrial footprint. Dassault Reliance Aerospace Limited (DRAL), a joint venture in Nagpur established in 2016 as part of offset obligations from the initial 36 Rafale deal, already produces components like wings and smaller fuselage sections.

Learning from past negotiations, Dassault is reportedly moving to take full ownership of the DRAL venture to ensure stringent quality control and streamline operations ahead of the MRFA tender.

This move is seen as a way to avoid potential disagreements over production standards, an issue that contributed to the collapse of the earlier Medium Multi-Role Combat Aircraft (MMRCA) tender a decade ago.

Further boosting the French proposal, Safran, the manufacturer of the Rafale's powerful M-88 engine, has committed to establishing a full-fledged Maintenance, Repair, and Overhaul (MRO) facility in Hyderabad. This will be the first MRO hub for the M-88 engine outside of France and is a critical step towards India’s strategic autonomy.

The facility will service the engines for India's entire Rafale fleet, including the 36 jets with the IAF and the 26 on order for the Navy, as well as the potential 114 MRFA jets. Safran's offer includes significant ToT, enabling local expertise in maintaining the high-performance engine.

This integrated approach extends beyond engines. The MRO ecosystem will also support the Rafale's advanced sensors, including the Thales RBE2 AESA radar, and its sophisticated weapons package, such as the Meteor and SCALP missiles.

This comprehensive support structure enhances the operational readiness and long-term sustainability of the Rafale in Indian service.

Rafale's Advantage in a Competitive Field​

The MRFA tender, estimated to be worth over $20 billion, is crucial for the IAF to overcome a significant shortfall in its fighter squadrons, which currently stand at around 31 against a sanctioned requirement of 42.

While the Rafale faces strong competition from American aircraft like the F/A-18 Super Hornet and F-21 (an India-specific F-16 variant), Sweden's Gripen, the Eurofighter Typhoon, and Russian jets, it holds several key advantages:

• Established Ecosystem: With the IAF and Indian Navy already operating or set to operate the Rafale, the logistical and training infrastructure is already in place, reducing integration costs and timelines.
• Commitment to 'Make in India': The high-value deals with Tata for fuselage manufacturing and Safran for engine MRO demonstrate a deep commitment to local production, a core requirement of the tender.
• Proven Strategic Partnership: France has historically been a reliable partner for India in sharing advanced defence technology, offering a smoother path for ToT compared to the stricter export control regimes of other nations.
• Scalable Production: The combined capacity of the new Hyderabad facility and the existing DRAL plant in Nagpur provides a credible roadmap for delivering 114 aircraft within the IAF's required timeframe.

Despite these strengths, challenges remain.

The Rafale is a high-cost platform, and analysts will be watching to ensure that the "Make in India" initiatives result in genuine technology transfer rather than mere assembly of imported kits.

Furthermore, Dassault's own production lines in France are facing pressure from a backlog of international orders, which could impact its ability to support the ambitious production timelines proposed for India.

 

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[Mc Addy]

Yes , with outdated avionics so we can't counter China .

 

[sanket]

MRFA meeting criteria is most important, and what Dassault offers under it, Rafale F4 or F5 version. Dassault was unwilling to share ToT, and also wants 100% ownership in DRAL. Most important thing is Dassault's total control in backward integration too. Dassault may import semi-knocked-down kits from France and assemble them in the DRAL facility, while it has to build an ecosystem locally, not only for the fighter jet but for engines too.

Starting an MRO facility is a different thing than building an ecosystem for engine components. Plus, yesterday it was news about M88-TREX, a new improved variant engine development; will that be offered under MRFA? That remains to be seen. Weapons too should be offered for license manufacturing.

Dassault has made some strides, but it still has to meet MRFA criteria: starting a Final Assembly Line with a local private player, with a complete ecosystem around it, with ToT sharing, and most important, source code sharing, for future upgrades without OEM permission and third-party weapons sensors integration on Rafale. It's a long way to go for Dassault; though it is the front-runner, it has to bend if it wants to win MRFA. By the way, three US fighter jets stand nowhere. The US will return with empty hands from MRFA.

 

[abhinav srivastava]

Source code for weapon integration and upgrade of jets is the missing piece.

 

[Baiju Bhaskaran]

I think we should order 42 Rafales, 72 Super Sukhois, and close this MRFA circus permanently. Then, concentrate on Tejas MK1A, MK2, and AMCA.

 

[Mahadev Jain]

I think the IAF should scrap the MRCA now and invest this $20 billion-plus money in our own programmes like Tejas, Kaveri engines, AMCA, etc. Even if you give an order to Dassault for 114 Rafale now, we won't get jets until 2031, so the government should think wisely before spending this huge amount; rather, it should spend this amount on our own projects.

 

[Madan]

Wasting time and money on the MRFA drama, which has been going on for so long and will continue for another decade or more, it is advisable to buy some Su-57 after clearing some objections by the IAF for the immediate need and spend money on the AMCA and Kaveri 2.0. Otherwise, France and the US will keep arm-twisting you through Dassault and GE. Learn your lessons fast and act accordingly. The government and IAF must make up their mind fast and stop this drama of MRFA, which has become tiresome and fruitless.

 

[Mango_Indian]

I doubt a $20 billion deal will buy 114 Rafales unless we do a flyaway cost kind of deal. India could not even close the contract for the 36 follow-on Rafales, which would have come for a price of $4.5 - $5 billion, as we had already paid for India-specific enhancements. The best would be to exercise the follow-on clause for $5 billion—if it is still alive—and if it is pegged to French inflation rate (<1% /year) for 36 Rafales and divert the rest of the money ($15 billion) to 5th-gen aircraft (F-35 or SU-57M). We should be able to buy 72 F-35s or a higher number (~90) of SU-57Ms.

But then India will prioritize buying transport, trainer, surveillance, and all sorts of non-fighter aircraft purchases over actual fighter aircraft purchases.

 

[Sandeep]

While it’s great that we will get to manufacture some of the fuselage parts and hopefully it will expand so we can get to manufacture more parts and technology.

However it’s highly unlikely that we will go ahead with the MRFA as manufacturing it under a license is far too expensive and it will cost over $25 billion. Also we won’t receive any transfer of critical technology such as the engines or jet computer etc and we won’t get to manufacture it indigenously either.

India needs to focus more on our indigenous jets and the type and number of missiles and bombs they need to develop. We need to quickly manufacture the Tejas MK1A jets as soon as possible and they should allow more private sector companies to manufacture or develop the technology. We also need to quickly start manufacturing the Tejas MK2 prototypes and quickly complete testing them so they can start manufacturing it as soon as possible. We also need to do the same for the AMCA jets as we need to quickly manufacture the prototype first.