India has laid down strict and non-negotiable conditions for French aircraft manufacturer Dassault Aviation for the proposed procurement of 114 Rafale fighter jets, according to a report by Tribune India. The deal, estimated at around Rs 3.25 lakh crore (approximately $36 billion), is aimed at strengthening the country’s air power while boosting indigenous defence manufacturing.

As per the report, the Indian government has clearly stated that all 114 Rafale jets must be integrated with Indian-made weapons, missiles, and ammunition. Along with this, Dassault will be required to provide secure data links that will allow the aircraft to digitally connect with Indian radars, sensors, and command systems. These requirements have been described as “non-negotiable clauses” in the manufacturing and procurement process.

To meet these conditions, Dassault Aviation will need to make changes to the software of the Rafale’s onboard computing systems. These changes are necessary to ensure seamless integration of Indian weapons and smooth transmission of operational data within India’s defence network.

The report further states that Dassault, along with its key partners, will provide transfer of technology (ToT) for manufacturing airframes in India. French engine manufacturer Safran and avionics company Thales are expected to participate in this technology transfer process, supporting India’s domestic defence manufacturing capabilities.

The Ministry of Defence is reportedly preparing to finalise an initial deal worth $8 billion to address critical gaps in the Indian Air Force’s combat strength. The fighter jets will be manufactured under the ‘Make in India’ scheme, with Dassault Aviation partnering with an Indian company for local production.

In September last year, Dassault Aviation increased its stake in Dassault Reliance Aerospace Limited from 49 per cent to 51 per cent, making the joint venture a majority-owned subsidiary of the French firm. This move is seen as part of Dassault’s long-term commitment to manufacturing in India.

Under the overall proposal, the majority of the 114 Rafale aircraft will be built in India, with indigenous content expected to be around 30 per cent. However, the plan also includes the purchase of around 12 to 18 Rafale jets in fly-away condition, meaning they will be delivered directly from France.

The Indian Air Force currently operates 36 Rafale fighter jets, while the Indian Navy has placed an order for 26 Rafale Marine aircraft. To support the existing fleet, a Rafale flight training and maintenance, repair, and overhaul (MRO) facility is already operational at the IAF base in Ambala.

In another significant development, Tata Advanced Systems Limited and Dassault Aviation signed an agreement in June 2025 to manufacture Rafale fuselage sections at a new facility in Hyderabad. According to the report, this plant is expected to deliver its first fuselage units during the 2028 financial year, further strengthening India’s aerospace manufacturing ecosystem.