Opinion Why Dassault’s 60% 'Made in India' Rafale Offer May Not Be Enough for India’s Operational Sovereignty and Long-Term Readiness

A recent proposal from French aerospace giant Dassault Aviation, offering to produce Rafale fighter jets in India with 60% indigenous content, has ignited a critical debate on the country's defence ambitions.

The offer is part of the tender for the Indian Air Force's (IAF) Multi-Role Fighter Aircraft (MRFA) program, a mega-project to acquire 114 new jets.

While a 60% "Made in India" component appears significant, strategic analysts argue that it falls short of securing India's long-term military and economic objectives, for which a threshold of at least 80% local content is considered essential.

This discussion is further complicated by Dassault's track record, as the company has yet to fully honour its offset commitments from the previous purchase of 36 Rafales, casting doubt on the credibility of new manufacturing proposals.

The Strategic Need for Deep Indigenisation​

India's national policies, such as "Make in India" and "Aatmanirbhar Bharat" (Self-Reliant India), have established a clear mandate for increasing self-sufficiency in defence manufacturing.

The MRFA program is a cornerstone of this vision, intended not only to replenish the IAF's dwindling squadron strength but also to fundamentally enhance India's domestic aerospace industry.

For a procurement of this scale, estimated to be worth over $20 billion, achieving a high degree of local manufacturing is a non-negotiable strategic priority.

An insistence on a minimum of 80% indigenous content is rooted in several key factors:

• Operational Sovereignty: Relying on foreign suppliers for 40% of a frontline fighter jet creates critical vulnerabilities. In a conflict, supply chains for essential spares and components could be disrupted by international pressure or logistical blockades. Local production of critical systems ensures that the IAF can maintain its fleet independently and sustain high operational readiness without external dependencies.
• Long-Term Cost Savings: Manufacturing components and systems within India significantly reduces lifecycle costs. Expenses related to maintenance, repair, and overhaul (MRO) are lowered, and the country avoids being locked into expensive long-term contracts for foreign-made parts.
• Genuine Technology Transfer: A higher indigenisation target forces a deeper level of technology transfer. An 80% threshold would necessitate the local manufacturing or co-development of sophisticated technologies like the Rafale’s Active Electronically Scanned Array (AESA) radar, its advanced electronic warfare suite, and, most critically, its Snecma M88 engine. This would provide Indian entities like Hindustan Aeronautics Limited (HAL) and private firms with invaluable expertise.
• Economic Growth: Maximising local content ensures that a larger portion of the massive financial outlay remains within India, driving job creation, developing a skilled workforce, and stimulating the growth of a domestic defence-industrial base.

A Closer Look at the 60% Proposal​

Dassault's offer to build the Rafales with 60% local content is an improvement over the 2016 direct fly-away purchase. However, it is likely that this figure would primarily cover the assembly of airframes and the production of non-critical components.

This model of licensed production, similar to the one used for India's Su-30 MKI fleet, builds capacity in assembly but does not lead to true self-reliance in designing and developing critical subsystems. The most complex and valuable technologies would likely continue to be imported from France.

Furthermore, other global manufacturers competing for the MRFA contract have made compelling "Make in India" proposals.

For instance, Lockheed Martin has offered its F-21 fighter to be exclusively built in India with a local partner, while Saab has highlighted its successful technology transfer program with Brazil for the Gripen fighter.

Brazil's deal ensured that its local industry, led by Embraer, was involved in co-development and full production, a precedent that India is being urged to follow.

Past Promises and Future Commitments​

A significant point of concern is Dassault's performance on its offset obligations linked to the €7.87 billion deal for 36 Rafales signed in 2016. Under this agreement, Dassault was required to reinvest 50% of the contract value into India’s defence sector.

However, India's Comptroller and Auditor General (CAG) has previously reported significant delays and shortfalls in these commitments.

The CAG noted that Dassault had not yet fulfilled its promise to transfer technology to the Defence Research and Development Organisation (DRDO) for the indigenous Kaveri jet engine, a key part of the offset deal.

This history of unfulfilled obligations makes it imperative for the Ministry of Defence to demand full compliance with past agreements before engaging in negotiations for a new, even larger contract.

The Way Forward: A Firm Negotiating Stance​

For the MRFA program to be a genuine success for India, a firm and strategic approach is required.

The Ministry of Defence is being advised to set a non-negotiable target of at least 80% indigenous content, with a clear roadmap for the transfer of critical technologies.

By leveraging the intense competition among global vendors and holding Dassault accountable for its previous commitments, India can secure a deal that not only equips the IAF with a formidable fighter jet but also transforms the nation's aerospace ecosystem for decades to come.

 

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[sanket]

Yes, it is the right thing to have 80% indigenization. Otherwise, in the future, there will again be a dependency on Dassault/foreign OEMs for the fighter jet supply chain. What is today being faced for the Mirage-2000 will be similar for the Rafale. That's why I always say France always wants to hold control over critical components, whether it is the Aero-Engine, the Shakti Engine, or now the Rafale fighter jet. This is where the real concern is. Arrogant Dassault will have to bend if they want to win the deal. The AMCA Engine deal is another example; if Eurofighter offers 80% indigenization, then its offer will put pressure on Dassault.

Fighting a future war should be based on a local supply chain, whether it is an indigenous fighter jet or a foreign fighter jet. A similar drama is expected, like with the AMCA Engine where Safran was at the third spot, but their offer went from 50% IPR to 100%, which at the last moment tilted the deal their way. Because of Dassault's unwillingness for 80% ToT, the G2G deal is becoming an MRFA competition again, and it will impact the induction timeline for the IAF.

If Dassault wants to get the 114 fighter deal, they have to become flexible. Dassault can even go for Meteor, SCALP-EG, and HAMMER for local licensed production, and not only 80% indigenous content. The remaining 20% of components should be manufactured by Dassault within Bharat, with control over it instead of importing them from France, and make Bharat a part of the global supply chain for the Rafale fighter jet. That will make the fighter jet 100% indigenized, with 80% indigenous components and 20% manufactured by Dassault but in Bharat.

 

[Somnath Sinhababu]

I don't think they will agree on 80% indigenous content. 60% is not bad, but we have to tell them that we should have free control over the platform such that we can integrate Indian weapons anytime. This platform should have our own GaN radar. If these two things sort out, then the rest is fine.

 

[Sandeep]

It’s absolutely guaranteed that Dassault will not provide more than 60% of indigenous content as if they were going to then a deal would have been made a long time to go.

Another alternative is to ask Dassault to start a 100% indigenous company and manufacture 100% of the jet, equipment and technology in India. All we have to do is fly them and Dassault can carry out any MRO, manufacture spares, carry out upgrades and this protects their technology and IPR as they don’t have to transfer any of it to us.

What we need more is the capability of the jet and its technology. Even if we went with the current deal then India won’t receive any critical technology like its avionics, radars, choice of weapons or engines etc and we would still rely heavily on Dassault for expensive changes, upgrades, spares, LRU etc.

At the same time India could look at the euro fighter typhoon jet which were being offered at a much lower price but its technology was just as good as it passed its trials in the competition.

At the same time India needs to boost its manufacturing capabilities and induct more Tejas MK1A jets. They should also quickly complete developing the Tejas MK2 and AMCA as those two jets will be our main offensive jets.

 

[Shafted mohammed]

I strongly believe Tejas MK 2 with close to 90% indigenous content is way better than the Rafail as it can fire all the ammo in Indian inventory.

 

[Enigma]

Rafale is useless at this stage for filling numbers, when Su-30MKI was operated with much more flexibility for so long. Better to add a few more numbers of Su-30MKI until numbers build up from indigenous fighters.

 

[Vasugali]

Already costly, Rafaels become costlier in the long run. Buy only limited quantities of Rafaels and consider acquiring R37M Zircon Hypersonic missiles alongwith SU 57 with TOT source code etc. for safety against China-Pakistan axis till AMCA becomes operational

 

[raj0072000in]

It’s absolutely guaranteed that Dassault will not provide more than 60% of indigenous content as if they were going to then a deal would have been made a long time to go.

Another alternative is to ask Dassault to start a 100% indigenous company and manufacture 100% of the jet, equipment and technology in India. All we have to do is fly them and Dassault can carry out any MRO, manufacture spares, carry out upgrades and this protects their technology and IPR as they don’t have to transfer any of it to us.

What we need more is the capability of the jet and its technology. Even if we went with the current deal then India won’t receive any critical technology like its avionics, radars, choice of weapons or engines etc and we would still rely heavily on Dassault for expensive changes, upgrades, spares, LRU etc.

At the same time India could look at the euro fighter typhoon jet which were being offered at a much lower price but its technology was just as good as it passed its trials in the competition.

At the same time India needs to boost its manufacturing capabilities and induct more Tejas MK1A jets. They should also quickly complete developing the Tejas MK2 and AMCA as those two jets will be our main offensive jets.

Tejas Mark 1A is non bankable fighter as it's engine is based on US GE 404 & highly unreliable... Thus no one should talk about this delayed platform based strategic planning.. Also its 4th Generation fighter. F16 is even better than that.

 

[emgee]

It’s absolutely guaranteed that Dassault will not provide more than 60% of indigenous content as if they were going to then a deal would have been made a long time to go.

Another alternative is to ask Dassault to start a 100% indigenous company and manufacture 100% of the jet, equipment and technology in India. All we have to do is fly them and Dassault can carry out any MRO, manufacture spares, carry out upgrades and this protects their technology and IPR as they don’t have to transfer any of it to us.

What we need more is the capability of the jet and its technology. Even if we went with the current deal then India won’t receive any critical technology like its avionics, radars, choice of weapons or engines etc and we would still rely heavily on Dassault for expensive changes, upgrades, spares, LRU etc.

At the same time India could look at the euro fighter typhoon jet which were being offered at a much lower price but its technology was just as good as it passed its trials in the competition.

At the same time India needs to boost its manufacturing capabilities and induct more Tejas MK1A jets. They should also quickly complete developing the Tejas MK2 and AMCA as those two jets will be our main offensive jets.

France is committed to the Rafale.
Only Germany and Spain are still committed to the Typhoon.

 

[NC]

Without source code rafale is not of much long term use. Why to waste billions of dollars.