Negotiations for India's 114 Rafale Deal Focus on Achieving 40-50% Indigenous Content, Confirms Defence Secretary

Negotiations for India's 114 Rafale Deal Focus on Achieving 40-50% Indigenous Content, Confirms Defence Secretary


Recent clarifications from Defence Secretary Rajesh Kumar Singh have provided renewed transparency and confidence regarding India’s strategic plan to procure additional Rafale fighter jets.

While various media outlets had speculated about reduced levels of domestic involvement, the Defence Secretary has firmly corrected these narratives.

He addressed the specifics of the upcoming 'Make in India' Rafale programme, dismissing earlier misconceptions and underscoring the government's robust negotiating position to ensure maximum benefit for the local industry.

During a recent press interaction, Defence Secretary Singh stated that the indigenous content in the Rafale aircraft—scheduled to be manufactured outside France for the first time—will aim for approximately 50%, significantly higher than the figures previously rumoured.

He revealed that Dassault Aviation initially proposed a localisation level of around 40%. However, as formal discussions proceed, India is committed to pushing this figure to 50% or more.

This target is not merely statistical; it represents a calculated move toward greater self-reliance in operating and maintaining one of the world's most sophisticated fighter jet platforms.

This clarification follows the Defence Acquisition Council’s (DAC) recent granting of the Acceptance of Necessity (AoN) for the procurement of 114 Multi-Role Fighter Aircraft (MRFA). This approval is a critical step in enhancing the operational readiness of the Indian Air Force.

The proposed arrangement suggests that while a small number of jets will be delivered in 'fly-away' condition directly from France, the vast majority will be built domestically in partnership with Indian firms.

The programme is being structured as a transparent government-to-government agreement, which removes intermediaries and guarantees India the sovereign authority to integrate its own weapons and systems—a feature Singh highlighted as a cornerstone of the project.

For observers of India’s defence sector, this progression serves as a significant maturity milestone for the 'Make in India' initiative.

Unlike previous procurements that focused primarily on assembly, this deal emphasises deep technology absorption and local manufacturing from the start.

A higher percentage of indigenous content translates to increased employment opportunities, more resilient supply chains, and sovereign control over future upgrades and maintenance.

The Defence Secretary’s direct intervention serves to reassure the public that the negotiations are being actively managed to prioritise national security and industrial growth.

Achieving nearly 50% indigenous content would mark a paradigm shift in how India executes major defence aviation contracts.

In practical terms, this level of localisation typically encompasses the manufacturing of airframes, structural parts, complex wiring, avionics sub-assemblies, and software integration.

Furthermore, open-source reports indicate that this deal is likely to be a key agenda item during French President Emmanuel Macron’s scheduled visit to India this week, reinforcing the strategic partnership between the two nations.
 
If there isn't significant enough TOT it's a garbage deal. Why do we not put these billions in development?
 
For such a large order GoI should have insisted on the 50% Indian content to be a part of Rafale's global supply chain, not just for India
 
Involve ADA scientists & HAL R&D team in making of Rafale F4 so that HAL can make omni role ORCA (-5th gen) for IAF !
 
I feel IAF has soiled Indian tax payers money to buy 6 Squadrons with additional 3 Squadrons provision of French Rafaele F4 Jets for 4.87 Lac Crore for 168 Jets and just 40-50% technology transfer. Moreover India can get around 97 Squadrons of Empty planes of Russian say 400 Su57M with AL51F Engines @400 Crore per plane and 900 Mig 35 with 2.5 Soloviev D30 F6 Modernised Engines @210 Crore per plane and 230 Old Tranche 3 & 4 Eurofighters with Pirate IRST from U.K.Germany Spain Italy @700 Crore per plane with Tranche 5 Version Complete Software and it's source code. Total amount for Empty planes would have been around 5.10 Lac Crore for 1530 such Planes. Fixing Indian Radar, Avionics, Pirate IRST/FLIR and Indo Russian Weapons, ASRAAM would have costed 2.4 Lakh Crore More. Lump sump 7.4 Lakh Crore for 97 Formidable Squadrons. British Weapons like Brimstone, Storm Shadow Missiles and Paveway 2 & 3 Precise Munitions & Meteor Missiles can be purchased if needed & can be installed in Eurofighters.

Regarding F4 Satellite Communication and being Network Centric all Indian Planes old and new can be made so for 1.5 Lakh to 3.0 lakh Indian Rupees like Finnish Mobile Bittium Tough Mobile 2C or Version 3 as Encrypted Satcom and Network Centric say two mobiles until Bittium Tough Mobile 3C comes in 2027/2028. They both uses Iridium Satellite Constellation for Communication. Similarly i-phone 17/18 Pro comes/will be coming with Encrypted SMS via Elen Musk Starlink Satellite Constellation @2.0 Lakh Indian Rupees. For Peanut Prices isn't it?
To oblige France Indian Navy can order Empty 72 Planes of Marine Rafaeles for just 72000 Crore. Indian Radars & Avionics along with Pirate IRST and Eurofighter Tranche 5 Software can be installed for 70000 Crore.

In addition to above India must buy 10 Squadrons of S500 for 1.5 Lakh Crore and 660 Pantasir SM-SV Model for 4.5 Lakh Crore and 18 Voronezh Radars for 0.5 Lakh Crore =6.5 Lakh Crore additional purchase.

Also 100 Mi 26 T2V Helicopters with 800 additional Engines for 60000 Crore and can airlift loaded ATGS Gun.

40 IL76 MD 90 AE Planes with 1296 additional Engines be purchased from Russia with MRO facility and Full ToT for 1600 Crore per plane =64000 Crore. Total =7.75 Lakh Crore. This 60 Ton plane can airlift all tanks including 68.5 Ton Arjun Mark 2 without Suspension & Chasis and can be re-fitted.

From France/Germany India can buy 36 A400 M Atlas planes with overhaul, maintenance, spares & training for 3194.5=3200 Crore per plane Totalling to = 1.15 Lakh Crore. 37 Ton plane can lift Light Tank.

To avoid CATSA India may have to buy Empty 300 F15 EX Half Empty planes from USA around @1200 Crore per fighter 3.6 Lakh Crore. Also 4000 Javelin ATGMs be purchased for 36000 Crore and 36 Romeo Helicopters for 49000 Crore. Total 4.45 Lakh Crore plus additional 1.4 Lakh Crore for integration of Indian Radars, Avionics and Indo British Weapons. In addition to it India Airlines Companies be encouraged to buy Commercial Planes from USA Boeing Company in good numbers instead of Airbus.
 
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