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Defence Procurement Board Grants Approval for 114 Rafale Fighter Jets Deal

Written by: Team Angel OneUpdated on: 19 Jan 2026, 6:13 pm IST
India’s Defence Procurement Board has cleared the first stage of a proposal to acquire 114 Rafale fighter jets for the Indian Air Force.
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The Defence Procurement Board has cleared a proposal to acquire 114 Rafale fighter jets for the Indian Air Force (IAF), according to news reports.  

The board, chaired by Defence Secretary Rajesh Kumar Singh, examined the proposal during internal meetings held by the Defence Ministry. This clearance is the first formal step required before the acquisition can move forward. 

Estimated Value and Approval Route 

As per ANI report, the proposed purchase is estimated to be worth about ₹3.25 lakh crore. After clearing the Defence Procurement Board, the proposal will be placed before the Defence Acquisition Council, chaired by Defence Minister Rajnath Singh.  

Final approval will be required from the Cabinet Committee on Security, which takes decisions on major defence purchases. 

Government-to-Government Structure 

The aircraft are planned to be procured under an inter-governmental agreement with France. Under this framework, the contract would be signed directly between the 2 governments, without intermediaries.  

The fighter jets will be supplied by Dassault Aviation. As per news reports, key source codes associated with the aircraft will remain with the French side. 

Production and Delivery Plan 

The proposal includes the purchase of 12 to 18 aircraft in fly-away condition to meet immediate operational needs. The remaining jets would be manufactured in India. Indigenous content is expected to range between 30% and 60%, depending on final terms. 

If approvals and negotiations are completed on schedule, delivery of the fly-away aircraft could begin from 2030. The IAF currently operates 36 Rafale aircraft. 

Read More: Rail Vikas Nigam Share Price in Focus; Secures Contract Worth ₹87.55 Crore from South Eastern Railway! 

Conclusion 

If approved by the Cabinet Committee on Security, the deal would increase India’s Rafale fleet to 176 aircraft, including 26 naval variants ordered earlier, adding to the country’s existing fighter inventory. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jan 19, 2026, 12:43 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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