India has signed an Inter-Governmental Agreement (IGA) with France for the procurement of 26 Rafale aircraft for the Indian Navy. The deal, announced by the Defence Ministry on Monday, is valued at approximately Rs 63,000 crore.
Under the IGA, India will purchase 22 single-seater and four twin-seater fighters, to be manufactured by France's Dassault Aviation (AM.PA).
"In line with the Government's thrust on Aatmanirbhar Bharat, the agreement includes Transfer of Technology for integration of indigenous weapons in India. It also includes setting up of production facility for Rafale Fuselage as well as Maintenance, Repair and Overhaul facilities for aircraft engine, sensors and weapons in India," the ministry said in a statement.
It is expected that the deal will generate thousands of jobs and revenue for a large number of MSMEs in setting up, production and running of these facilities.
The Rafale-Marine is a carrier-borne combat-ready aircraft with proven operational capabilities in a maritime environment. The delivery of these aircraft would be completed by 2030, with the crew undergoing training in France and India.
The Rafale M procurement will include weapons, simulators, spares, associated ancillary equipment, crew training and logistics support for the Indian Navy from the French government.
Strengthening Naval Power
The deal was approved by India's security cabinet, chaired by Prime Minister Narendra Modi, earlier this month. In July 2023, India’s defence acquisition council (DAC), headed by defence minister Rajnath Singh, approved the Navy’s proposal to buy 26 Rafale M fighters to sharpen its operational capabilities.
The Indian Air Force currently operates 36 Rafale fighters, while the navy's aircraft fleet mainly comprises Russian MiG-29 jets, according to Reuters. The move is part of India’s broader push to modernise its armed forces, cut reliance on Russian hardware, and scale up domestic defence manufacturing, especially as tensions persist along borders with Pakistan and China.
The Indian Navy has raised concerns around China's growing presence in the Indian Ocean over the past decade, with Beijing operating dual-purpose vessels in the region and maintaining a military base in Djibouti since 2017.
