In the proposed deal between India and France for buying 114 Rafale fighter jets, around 80 per cent of the aircraft are planned to be built in India, according to government sources.

The plan also includes shifting some manufacturing facilities from France to India as part of the localisation effort in the project.

Government sources told ANI that the Indian side is discussing with French officials to maximise the localised content in the deal. As part of this, there are plans to set up a Maintenance, Repair and Overhaul (MRO) facility in India. This step aims to increase the serviceability of the planes.

Officials said that the two sides will further negotiate the cost of the project. They added that the French price offer already includes an increase in costs due to inflation at around four per cent per year.

The sources also mentioned that with many parts and systems of the Rafale jets to be built in India, there is a possibility that the French company Dassault Aviation may use an Indian entity for export orders. In this case, Indian MRO facilities may be offered as a hub for neighbouring countries operating Rafale and other Dassault aircraft.

Officials said that in the current circumstances, the Rafale has been found to be the best-suited aircraft to meet the Indian Air Force’s requirements. They noted that the serviceability of the Rafale is around 90 per cent, which is much higher than any other aircraft in the world, including the American F-35.

The Indian Air Force has been pushing for the purchase of 114 Rafale fighter jets for a long time, ever since the aircraft was selected in a multi-vendor tender.

The Air Force is currently facing the problem of depleting fighter aircraft squadrons. At the same time, its indigenous fighter aircraft project has been delayed, partly because of issues with engines and challenges in integrating foreign-made equipment with the LCA Mark 1A aircraft.

The sources pointed out that India is dealing with security challenges on two active fronts — Pakistan and China. They also said that Bangladesh is quickly becoming a security concern. Due to this situation, the number of fighter aircraft squadrons required by the Indian Air Force is exceeding the long-accepted requirement of 42 squadrons.

Government sources emphasised that the localisation push in the proposed Rafale deal shows India’s intent to increase its defence manufacturing capabilities and reduce dependence on foreign manufacturing.

The discussions between India and France are continuing, and officials said both sides will try to finalise terms that benefit Indian defence goals while meeting the Air Force’s operational needs.