Analysis Dassault’s Bid for Selling 110 Rafale Jets to IAF under MRFA Diminish as India Pivots Towards Acquiring 5th-Gen Fighter Jet

Dassault’s Bid for Selling 110 Rafale Jets to IAF under MRFA Diminish as India Pivots Towards Acquiring 5th-Gen Fighter Jet


India's strategic plan to modernise its aerial combat fleet is at a pivotal moment, with new considerations potentially altering a major aircraft acquisition deal.

The prospects for French aerospace giant Dassault Aviation to secure a full order for 114 Rafale fighter jets under the Multi-Role Fighter Aircraft (MRFA) tender appear to be shrinking as the Indian Air Force (IAF) increasingly considers acquiring next-generation stealth fighters.

This potential shift in India's defence procurement strategy, which could involve purchasing two to three squadrons of 5th-generation jets, may lead to the original Rafale order being cut by as much as half.

Such a decision would reflect India's evolving military priorities and its goal of maintaining a technological edge in a complex regional security environment, significantly impacting the estimated $10–14 billion Rafale contract.

The MRFA tender is a critical initiative designed to address the IAF's declining squadron strength and replace its aging fleets of MiG-21, MiG-27, and Jaguar aircraft.

Dassault's Rafale, a 4.5-generation multirole fighter, has been a strong contender, partly because India already has a positive operational history with the aircraft.

The IAF currently operates 36 Rafales from a 2016 deal, and the Indian Navy has committed to purchasing 26 marine versions of the jet. This familiarity, combined with the Rafale's advanced avionics and established maintenance infrastructure in India, has given Dassault a notable advantage.

However, the path to a full 114-jet deal is complicated by significant challenges, including the high cost of the aircraft and questions about Dassault's ability to meet production timelines.

The 2016 deal valued each Rafale at a high price point, and Dassault's global production capacity is already strained with orders from nations like Indonesia, the UAE, and Serbia.

Fulfilling a large Indian order would likely require setting up a new assembly line in India under the 'Make in India' policy, adding further cost and complexity.

The primary factor disrupting the MRFA tender is the advent of 5th-generation stealth fighters, such as the American-made Lockheed Martin F-35 and India's own indigenous Advanced Medium Combat Aircraft (AMCA) currently under development.

These aircraft offer superior capabilities, including low-observable stealth technology, advanced sensor fusion, and network-centric warfare systems that represent a generational leap over 4.5-generation jets like the Rafale.

While the F-35 has a proven combat record, the AMCA project, led by DRDO and HAL, is central to India's long-term goal of self-reliance in defence manufacturing, with a targeted induction in the mid-2030s.

Acquiring 36 to 54 of these advanced stealth fighters would directly address the IAF's strategic need to counter the growing air power of regional adversaries. China is expanding its fleet of J-20 and J-35 stealth fighters, and Pakistan is also expected to acquire modern fighter jets.

The stealth capabilities of 5th-generation aircraft are essential for penetrating heavily defended airspace protected by sophisticated surface-to-air missile systems, such as the S-400, which both China and India operate.

Should the IAF prioritise the purchase of stealth fighters, budgetary realities would likely force a reduction in the Rafale order to approximately 55-60 aircraft.

The IAF's budget must also cover other vital programmes, including the indigenous Tejas Mk1A and Mk2 fighters and naval acquisitions. A smaller Rafale purchase would free up significant funds for a 5th-generation platform while still providing a capable multirole aircraft for various combat scenarios.

For Dassault Aviation, a 50% reduction in the order would represent a major financial setback, cutting potential revenue from over $10 billion to between $5 and $7 billion. It would also affect the company’s industrial plans for India.

For India, this move would signify a decisive strategic shift. Opting for the F-35 would deepen defence cooperation with the United States, building on recent agreements like the deal for GE to co-produce F414 engines in India.

Conversely, prioritising the AMCA would be a landmark achievement for India’s "Atmanirbhar Bharat" initiative, though it would mean waiting longer for a homegrown stealth solution.
 
Wow, first, whoever offers local production with sharing ToT, source code sharing, complete eco-system autonomy in future upgrades, autonomy in combat operations, and autonomy in integrating sensors and weapons will be preferred.

Splitting the fighter deal with two will not benefit; again, it will make us dependent on foreign OEMs for fighter jet components, mid-life upgrades, and indigenous as well as third-party weapon integration. Again, it will be copy-paste as buying Mirage-2000, which is not going to happen.

The only thing possible is either 60 or 2 to 3 squadrons of Su-57 with local production and 114 Rafale under MRFA, or another 3 squadrons of fly-away Rafale with already established MRO facilities. That will make the Rafale not cross 100 (36+26+36=100) and 114 Su-57 local production with a complete eco-system.

At the moment, Dassault is not willing to share ToT. If Dassault sticks to that, then 2/3 squadrons of Rafale may be bought in fly-away condition, partnering with local private players from Bharat.
 
Rafale isn't worth $300mn per jet by any means. We would've easily chosen F-35 over it if we didn't have any user constraints and Su-57 if it wasn't sh*t.
 
Very bad. Who needs a fourth-gen jet if we can get fifth-gen jets?
IAF might still go for cheaper 4th-gen options on top of 5th-gen jets to fill the squadron shortage, like the F-21, more likely for GE engines and other concessions like a CAATSA waiver. But Rafale for MRFA is highly unlikely, unless the GOI completely pivots from buying anything from the US due to CAATSA sanctions and finds a different engine for Tejas, which is again highly unlikely.
 
Why should we choose a costly 4th-gen jet over a cheaper 5th-gen? We should not give more orders to Rafael at all. Russia's offering of Su-57 with ToT and local manufacturing is always a much better option than Rafael.
 
AGREED: Scrap MMRCA; it is dead. Buy Su-57/F-35, both cheaper than Rafale. Try to replace Rafale with F-5 standard in future.

Focus on MK-1A/MK-2/AMCA on priority basis.

Even Pak will have 7 squadrons of 5th-gen jet in future, like J-35, KAAN.
 
For 4th gen requirements, fix the engine and delivery of Tejas Mk1A. Expedite Tejas Mk2 for 2035 induction. Go for fifth-gen platforms, at least 2-3 squadrons. Don't go for imported 4th-gen jets.
 
The SU-57 local production offer is better than Rafale at the moment. Also Rafale did not provide any overwhelming advantage over PAF and it will be even less against PLAAF. Better go for stealth jets like SU-57 or F-35, whichever offer is better.
 
@sanket
I wonder if we really need so many Rafales if we are going to upgrade our Sukhoi Su-30 MKI as well? Is that not going to cost us a lot already? I also do not think that it will be very wise to buy Russian jets at this moment. We should let the Ukraine conflict end first.
 
The SU-57 local production offer is better than Rafale at the moment. Also Rafale did not provide any overwhelming advantage over PAF and it will be even less against PLAAF. Better go for stealth jets like SU-57 or F-35, whichever offer is better.
Su-57 local production with full ToT does look like a lucrative offer, but we must keep in mind that until the conflict with Ukraine is resolved, America will not have any other nation maintain strong ties with Russia, and our relationship with them is already on the weaker side.
 
If you are buying a foreign design now, it's better to stick with any 5th Gen fighter like the F-35 and not waste any more resources on 4th Gen birds.
 
Why buy something which does not allow you the full assess to integrate your own systems and munitions that too on a very high cost. I would prefer to invest on our Tejas Mk2 instead of Rafael. As in cost of one Rafael probably IAF would get almost 2.5 Tejas Mk2. Also the lead period will be same approximately 2032. At least an investment in Tejas Mk2 will give IAF full control to prepare the jet as per IAF wish. Any further investment in Rafael would be an illogical decision and purely a fraud. Investing in 110 Rafael under MRFA which lies 10th on the global ranking of the advanced fighter jets will remain a question to be answered. Rafael is a hyped jet probably and we can have other in the market to look up on if not Tejas Mk2 at very moment.
 
Our adversary is way past Rafale's superiority; hence, good to look forward. With our old friend Russia offering options and indigenous options upcoming, it's not wise to have F-35 or Rafale.
 
Just buy 3 squads of Su-57 with R-37 missiles. Invest the rest of the money in the Kaveri engine. Rafale is anyway obsessed with keeping its source code. Let them keep it with the plane.
 
I think for MMRCA deal it will be better to go with F21 which will fill the squadron deficit and also accelerate deliveries of F404 and F414 GE engines for Tejas Mk1A and MK2. Let the AMCA funding be intact and go as per plan.
 
114 MRFA can be scrapped if govt push HAL to complete Tejas MK2 testing and production ready by 2030. So MK2 will replace Mirage. MK1A can now replace Mig. Then do agreement with Russia for TOT on Su57 which can be manufactured in India with condition that new engine on trial will get fitted in it. The same engine can be fitted in Su30MKI. 114 MRFA is wastage of money.
 
Who is interested for IAF to get 42 squadrons. It is mostly aircraft companies abroad and their hired agents in India pushing 42 squadrons of 1995 technology era. Time has changed. The aircraft industry is undergoing a dramatic change every 10 years. The previous eras Rafale and MiG-35 or American f-18 are no longer in the running. It is the stealth fighters or era of 5 generation fighter jets. Ten years from now it will 6th generation. Then why are we harping on 42 squadrons and shortage of aircrafts. Yes, the old ones need to be replaced but talk of 42 squadrons unnecessary. Technology is undergoing a change in which one 5th generation can match the performance of three 1995 generation aircraft.

The much talked about two front war has a limited scope. Nobody wants to jump into other’s fight. Certainly not China for petty terror related fights initiated by Pakistan. Now Indian Army in operation Sindoor has proven that its muscle can outperform any adversary including China. Now they are sitting down a bit quiet. Now even Pakistan does not want Chinese military hardware hence why would China act funny and get into war situation with India on Pakistan’s behalf. Even Chinese have realized that there is nothing to gain in India. Trouble is that they can get stuck in Himalayas and loose the battle and prestige.
 
The best option today is the SU 57. The Americans will not transfer tech to us. We are wasting time now and should go in for the SU57, treat it as MFRA deal. One AMCA can come in its own time.
 
Don't buy F-35 and become a slave to Americans. We should buy the aircraft from whoever gives 100 percent ToT of the engine, from material to processes, so that we become totally independent.
 
Russian offer of Su-57 E with Su-35M and with full TOT is the best India can go for, and the knowledge gained can be used for further development of AMCA and 6th generation aircraft.
 
What combat proven the F35 is? Bombings in Syria or the Houthis (who almost shot down one?). Israel heavily used F15s and F16s to bomb Iran - 4th gen fighters.

5th gen fighters serve a limited purpose of stealth attacks. Real bombings are still done by 4th gen fighters. 5th gen fighters are more like special forces of military aviation.

We should setup the Rafale production line quickly and make 100+ jets as limited 5th gen orders will not suffice for the falling squadron strength and Rafale is already integrated in the IAF system.
 
I think we should acquire, s-500 and latest generation stealth bomber, rather then flying coffin like Rafael, in the recent skirmishes Rafael performance has been tested and it was not upto the mark
Also, alternatively we can go for f-21 which are way cheaper then Rafael until amca is available to surpass the American sanctions and build defence ties with America.
This way we can get the most benefit from both sides (Russia and U.S) also we might secure engine production/procurement for tejas/AMCA
 

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