India Set to Negotiate for 110 More Rafale Jets via Direct G2G Deal, Bypassing Stalled MRFA Tender Complexities for Faster Squadron Fillup

India is reportedly preparing to enter negotiations later this year for a significant purchase of 110 additional Rafale fighter jets directly from the French government.

According to reports from The Print, this potential multi-billion-dollar government-to-government (G2G) agreement aims to rapidly bolster the Indian Air Force (IAF), which currently faces a shortage of fighter squadrons.

This move signifies a shift away from the stalled Multi-Role Fighter Aircraft (MRFA) procurement process. The MRFA tender, initiated in 2018 with a Request for Information (RFI) for 114 jets, has encountered significant delays. Complex requirements regarding the transfer of technology (ToT) and competing interests among aircraft manufacturers have hampered progress.

An IAF official highlighted earlier in 2024 that a direct G2G deal offers a more efficient path, bypassing these tendering complexities. This approach allows India to leverage the existing infrastructure, training protocols, and maintenance facilities established for the 36 Rafales already inducted into the IAF, as well as the 26 Rafale Marine jets recently approved for the Indian Navy. The CCS cleared the naval deal on April 8, 2025, for approximately ₹63,000 crore, equipping India's aircraft carrier, INS Vikrant.

A significant aspect of the proposed deal involves French aerospace major Dassault Aviation potentially taking full ownership of Dassault Reliance Aerospace Limited (DRAL). This facility, located in Nagpur's MIHAN Special Economic Zone, is currently a joint venture established in 2016 with Reliance Aerostructure Limited (a part of Reliance Defence Limited).

DRAL has been manufacturing components like fuselage sections and wings for Rafale jets and parts for the Falcon business jet line, fulfilling Dassault's offset obligations from the initial 2016 Rafale purchase. Dassault has reportedly sought full control over the Nagpur facility since at least 2022 to streamline operations.

Dassault's preference for complete control reportedly stems from experiences during earlier negotiations (MRCA talks, 2013-14) where disagreements arose over quality assurance for jets proposed to be manufactured by Hindustan Aeronautics Limited (HAL). Dassault argued then, and reiterates now according to 2024 reports, that full ownership of the production facility is necessary to guarantee the quality standards required for the advanced fighter jets, potentially positioning the Indian facility for future export orders.

While Dassault has claimed it could produce two Rafales per month at DRAL, delivering 110 jets in five years, some analysts remain skeptical given Dassault's own recent production output in France (13 jets produced in 2023 against a target of 15).

Despite seeking full ownership of DRAL, Dassault Aviation has reportedly committed to sourcing the majority of the aircraft's components from Indian suppliers, aligning with the government's "Make in India" initiative.

The original 2016 deal mandated significant reinvestment (50% offset, roughly €4 billion) into India's defence sector, leading to partnerships with firms like L&T, Mahindra Group, Kalyani Group, and Godrej & Boyce for various components, alongside joint ventures like Snecma HAL Aerospace Ltd for engine parts. The new deal is expected to further develop this indigenous defence manufacturing ecosystem, with DRAL acting as a central assembly and sourcing hub.

However, concerns persist within the Indian Ministry of Defence (MoD), as reported in August 2024. Officials have expressed doubts about achieving the potentially mandated 70-75% indigenous content level, fearing DRAL might primarily function as an assembly unit using kits imported from France, limiting genuine technology transfer.

Ensuring local sourcing for the Rafale, an aircraft comprising over 40,000 components, presents a considerable challenge. Critics also worry that full foreign ownership of the assembly facility could concentrate technology transfer benefits within Dassault and its chosen private partners, potentially limiting the role of state-owned enterprises like HAL.

If finalized, the acquisition of 110 additional Rafales would bring India's total fleet to 172 (including the existing 36 IAF and 26 Navy jets). This would position India as one of the largest operators of the Rafale globally, enhancing its air defence and deterrence capabilities significantly in a region where neighbours like China operate advanced fighters like the J-20 and Pakistan may acquire systems like the J-35.

 

[R. Singh]

We must make Rafale F-4/F5 tech based twin engine ORCA powered by GTRE Kaveri 2.0 engines and MUMT tech enabled fighter to replace Mig-29s !

 

[Enforcer]

Bad deal. Pursue 5th gen. 4th gen in 2025 is a waste of money and crucial time.

We will be a laughing stock, not a superpower, if we keep doing this.

If India has the money to buy both Rafale and F-35, then I don't care, but I don't think that is the case.

 

[sanket]

Wow, doubts over Dassault, will they even meet the expectation of locally sourcing components and developing an eco-system?

They will charge higher for any integration of sensor systems or weapons, whether it is indigenous or third party. Will Dassault allow autonomy for this?

Before Dassault even integrates a GaN-based AESA radar, DRDO has been developing a GaN-based AESA radar. Will it be allowed on the Rafale?

Dassault will have full control over DRAL. How will private players from Bharat benefit?

If Dassault takes full control, it will be copy-paste work (import from France and assemble it in the DRAL plant).

Already, Dassault failed to meet the promises that were made in the 36 Rafale deal under the offset clause.

Having already burnt fingers in the Mirage-2000 upgrade deal, how will the transfer of technology benefit local private players if they are not part of locally assembling or integrating?

It will be a 100% Dassault subsidiary which will manufacture Rafale jets by importing semi-CKD from France.

 

[Mithu Roy]

No need to buy Rafale any further unless they give the hot section tot for M88.

Go for Su-57. Russians want money. They will give you the hot section of the engine.

 

[Karmic]

If you consider unit cost + weapon package + operation cost for 8000 hours, then 5th Gen costs triple than 4.5 Gen.

 

[abhinav srivastava]

Tomorrow's wars won't be won by yesterday's weapons. Assembling costly 4th gen jets by Dassault in India makes no sense. Maybe a small number of Rafales and some 5th gen jets will make more sense. Bargain tech for hot core engines. Dassault doesn't even share tech for MRO. If Dassault itself will assemble in India, what tech would we gain? Even for midlife upgrades and weapons integration we will have to shell out huge money.

 

[Harihar Pai]

With the same cost you get nearly 300 Tejas MK2, Which is almost equal to Rafael. We must max for 36 more for immediate requirements and then concentrate on MK2.

 

[Mc Addy]

Yes

 

[Mc Addy]

Get what's on shelf now , later some TOT whatever can happen . Europe is on fire , and we are useless in jet tech so lap up what's there there, rest will a question mark if Russia squares off with these two last Europen military powers, Britain and France.

 

[Preet]

Only buy 114 Rafale if we have a 110kN AMCA engine deal alongside it. Otherwise, no point. Just get 114 Su-57 and negotiate for an AL-51 derivative engine for AMCA. And if the Air Force isn’t convinced of the Su-57, then get 36 Rafales (vanilla, only Indian weapon integration) and 54 F-35. No matter what the cost, 3 squadrons of F-35 will keep China away for long enough till we get our AMCA, and 36 + 54 is 90 jets instead of 114. The 24 jets' price saved should go into the maintenance and operations of an F-35.

 

[Rama Hota]

Minimum 54 F-35 or SU-57 urgently needed for IAF. One of our neighbouring countries is having 300 fifth-generation fighters. We don't have plans to purchase. Is it a joke?

 

[Leo red]

Remove Reliance and add names like L&T, Tata, or Mahindra. Anil Reliance is bankrupt, not competitive, and a money-hungry organization. They have pushed their name below ground. Also, the offset part was with interest, if you know. How much will they pay in interest for going so late? And with which Indian companies will Rafale work? What are our companies producing for Rafale? Are they coming with a new offer just for the contract?

 

[Joseph P V]

Then why should the company be having Reliance name? Dassault can have their own subsidiary as Dassault India Private Limited or so and operate. Why do they need the Reliance name if it is going to be under their full control? Sounds fishy

 

[DB_NE_Guy]

It is going to cost us very hard! Had India ordered 36+36 way back then it would've been lot better.

 

[Girish Tyagi]

Rafale for Navy and Air Force is a good choice looking at long-term cost-benefits. It makes more sense for Dassault to source components from Indian companies, helping build the ecosystem. Deepening ties with France with possible collaboration on the aero engine now.

 

[bonito]

Considering the fighter jets to serve for the next 30 years, and additionally, I doubt we would have the budget to keep on procuring for the next 10 years. It is prudent we better bet properly.Have we done this earlier? Yes, with Su-30MKI in 1996 and 2004. But this is not 1996 and 2004; in a fast-changing world, the jet life cycle gets obsolete so easily.

 

[GMR]

Nothing better, but should wait for official comm. And pls don't argue for more Tejas in place of MRFA, we all know Tejas simply cannot be produced fast enough, we need modern jets, like yesterday. We are operating MIGs, Jaguars for god's sake, museum stuff and still at 31 squadrons. And there should be no crying on cost. When we are not producing & not meeting own requirement, we need to import and imports are costly. Crying & doing nothing has given IAF & MOD a big zero till now.

 

[Baiju Bhaskaran]

This would have been the best deal if it was done four or five years ago. At that time IAF and MOD were sleeping and dreaming of MRFA which was never possible. Now suddenly they realize the urgency and going back. I think it would be a worst decision to spend money on Rafale without TOT. The better would be to order 100 nos of Super Sukhoi 30 MKI with that money.

 

[Sandeep]

This news seems to be dodgy and fake. If India was definitely going to buy 114 Rafale jets in a G2G deal then they wouldn’t have made a separate deal for 26 naval jets for around 60,000 crore. India would have got a cheaper and better deal if they bought all of the 114+26=140 jets together in one deal and within that deal include any technology, equipment or weapon changes that we wanted.

Another reason why it’s fake news is because the government would end up paying a higher price and more expensive deal if they didn’t allow an open tender route which would have got them the cheapest price.

Also the MRFA tender is going to be very expensive and cost over $25 billion even if they manufacture the jet in India. Dassault won’t manufacture 100% of the jet in India or transfer any critical technology to us or manufacture it using Indian raw materials.

It’s much better to focus on manufacturing the Tejas MK1A very quickly and increase the production line and quantity that we can manufacture per year. Also we need to quickly manufacture several of the Tejas MK2 and AMCA prototype, run all of the tests properly and certify the technology and capabilities. It will be easier and quicker to manufacture and certify the Tejas MK2 jets before the AMCA but those are the main jets we need to focus our time, effort and money.

 

[Somnath Sinhababu]

I think making SU-57 in India is more profitable. It will give India a 5th-gen capability, and India can add its own weapons and radars as well. France will never agree to Indian weapons in Rafale, but the US is the biggest problem for defence deals with Russia right now. Tariff is also there, but take the decision faster. IAF is literally on a ventilator. India cannot fight with Pakistan Air Force right now, forget China. India has to spend 30-40 billion dollars on the Air Force itself to counter a 2-front attack. 2025 is the make-or-break year for IAF. If Gov't doesn't take any decision in 2025, then IAF will collapse. It will be all over.

 

[Himesh]

It makes Dassault rich and makes India poor, both economically and technologically, with perpetual dependence on France for another five decades: the entire life cycle of Rafale.

 

[Tornado]

Rubbish! They could build Mk3 with two Kaveri engines, and the same would be delivered in a similar timeframe as well. Also, saying 4.5 gen would match the 5th or 6th gen of hostile neighbors is utter foolishness. Better to go for SU-57 or F-35 if available.

 

[Raja Raja Cholan]

Wow, after so many years of dragging their feet, showing no interest in the pursuance of 114 MRFA, now there seems to be some news. But still sceptical about how reliable and how much truth is in this news, or as usual, it is just a teaser, I am not sure. Still, the negotiations will begin later this year. I hope very much the negotiations will commence later this year, and I am waiting for that to happen anxiously. If the GoI is really serious about acquiring MRFA, it should insist Dassault set up local assembly lines. If Dassault refuses to come to terms with GoI, then we should look elsewhere. Why does it have to be a French fighter as the favourite all the time?

 

[Senapati]

No more Rafal.
Tejas Mk1 and Mk2 are good enough.
Think of 5th generation stealth fighter Su57 or Su75 with Al51 stealth engine.