In a landmark development for India’s aerospace sector, French aerospace major Dassault Aviation is set to establish a high-capacity production facility in Nagpur, Maharashtra.
This new assembly line is projected to manufacture up to 24 Rafale fighter jets per year, positioning it as the company's second-largest global manufacturing hub after Merignac, France.
This ambitious initiative represents the most significant foreign Original Equipment Manufacturer (OEM) fighter aircraft programme in India to date.
The Nagpur facility will serve as the anchor for a comprehensive domestic industrial ecosystem, integrating dozens of Indian aerospace companies into the global Rafale supply chain.
A Strategic Shift from Assembly to Full-Scale Production
Industry sources indicate that the Nagpur plant is being designed as a fully industrialised production hub rather than a simple final assembly unit.It will be capable of handling the complete spectrum of manufacturing, including systems integration, flight testing, and final delivery.
This expansion is critical to Dassault’s strategy to meet the rising international demand for the Rafale and to support India’s prospective order for 114 Multi-Role Fighter Aircraft (MRFA).
Currently, Dassault relies solely on its French production line. The addition of the Indian facility will effectively double the company's manufacturing capacity, creating a geographically diversified and resilient supply chain.
This move underscores Dassault's long-term commitment to India as a strategic base for its flagship fighter programme.
Integrating Indian Industry into the Global Supply Chain
The new production model marks a departure from earlier defence deals that focused heavily on offset obligations.Instead, this initiative aims to build a permanent, long-term industrial partnership where Indian suppliers become integral to Dassault’s global operations.
Major Indian conglomerates, including Tata, Mahindra, Dynamatic Technologies, and Larsen & Toubro (L&T), alongside numerous specialised Tier-2 and Tier-3 suppliers, are expected to play pivotal roles.
The ecosystem will cover diverse areas such as aerostructures, avionics, composites, precision machining, and landing gear systems.
- Tata Advanced Systems: A key partner in this venture, Tata has already been selected to manufacture critical Rafale fuselage sections. This is a significant milestone, as it is the first time such vital aerostructures are being produced outside of France, validating Indian industrial quality standards.
- Dynamatic Technologies: Known for its precision engineering, Dynamatic has emerged as a major supplier for complex metallic structures.
- Mahindra Aerospace: This group is expected to contribute through sub-assemblies and precision machining.
Boosting India's Defence Capabilities and Economy
If executed as planned, the Nagpur facility will fundamentally transform India’s fighter aircraft industrial base. It will be the first time India hosts a foreign OEM production line with a throughput comparable to leading global programmes.The project is expected to generate thousands of high-skilled jobs and drive significant investment in aerospace tooling and automation.
Furthermore, the expertise gained from this "zero-defect" manufacturing environment is expected to benefit indigenous defence programmes, such as the Tejas Mk2 and the Advanced Medium Combat Aircraft (AMCA).
For Dassault, the Nagpur hub offers a scalable, cost-competitive production base with direct access to a rapidly maturing aerospace supply chain, ensuring the Rafale remains a dominant player in the global fighter jet market.
