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IAF's Proposal for 114 Made-in-India Rafale Jets, Valued at ₹2 Lakh Crore, Under Revi

Written by: Team Angel OneUpdated on: 15 Sept 2025, 7:44 pm IST
India may approve a ₹2 lakh crore plan for 114 Rafales, with 60% local content, boosting the fleet to 176 jets under a Made in India model.
IAF's Proposal for 114 Made-in-India Rafale Jets, Valued at ₹2 Lakh Crore, Under Revi
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India’s defence modernisation drive could soon reach a milestone as the Ministry of Defence examines a proposal to acquire 114 Rafale fighter jets, as per news reports. Estimated at over ₹2 lakh crore, the plan aims to bring production to Indian soil under the ‘Made in India’ framework, with French firm Dassault Aviation partnering with domestic aerospace companies.

Ministry Review and Procurement Pathway

According to ANI, the Indian Air Force (IAF) has already filed a Statement of Case for the acquisition. The proposal is undergoing scrutiny across multiple arms of the ministry, including Defence Finance. 

Following inter-ministerial checks, the matter will advance to the Defence Procurement Board, chaired by the Defence Secretary, before eventually being placed before the Defence Acquisition Council.

Fleet Expansion

If approved, the Rafale programme would significantly enlarge India’s frontline fleet. The IAF currently operates 36 Rafales, with another 26 ordered by the Navy, taking the potential future tally to 176 aircraft. 

Industrial Impact and Future Planning

The project stipulates that more than 60% of the aircraft’s content be manufactured in India. Dassault has proposed creating a Maintenance, Repair and Overhaul hub in Hyderabad to support the Rafale’s M-88 engines. The company already operates a service unit for French-origin aircraft in India, while domestic partners such as Tata are expected to play central roles in local production. 

Read More: GST on Drones Slashed to 5% to Boost ‘Make in India’ Drive!

Conclusion

With India’s air power facing increasing regional challenges, the ₹2 lakh crore Rafale proposal represents more than just a procurement exercise. By mandating local production and expanding frontline capacity, the plan could cement the Rafale’s role in the nation’s long-term defence strategy, while reinforcing the IAF’s readiness for future threats.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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 securities are subject to market risks. Read all related documents carefully before investing.

Published on: Sep 15, 2025, 2:14 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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