Significant progress has been made in the medium strike aircraft program for the Indian Air Force. The French company Dassault Aviation has given its consent to integrate domestic Indian weapons and systems into Rafale fighters.
According to defense sources, the company is ready to equip the Rafale platforms with systems such as Astra Mark-1 and Mark-2 BVR missiles, smart air defense weapons, the Rudram anti-radiation missile, as well as other weaponry and electronic warfare suites developed by DRDO. Previously, this requirement was delayed due to concerns related to source code.
This agreement will help reduce dependence on expensive French weaponry, such as Meteor and Scalp. The Indian Air Force will be granted freedom to use its own weapon systems, which will lead to reduced costs and increased self-sufficiency.
The total value of the deal for 114 Rafale fighters is estimated at over two hundred billion rupees. This deal is expected to be finalized by the end of the fiscal year, meaning by March 2027 or the end of 2026. During negotiations, issues such as price, inclusion of 50-60 percent of production materials in India, technology transfer, and the establishment of maintenance and repair (MRO) facilities in India are being discussed in detail.
If the deal is concluded, these 114 aircraft will be manufactured in India on a large scale. Dassault will establish a complete production line in partnership with an Indian private partner. Currently, the Indian Air Force already operates 36 Rafale aircraft inducted between 2020–2022. Furthermore, 26 Rafale-Marine fighters were approved in April 2025 for the navy, which will be stationed on INS Vikrant, valued at $7.4 billion. The new 114 aircraft will be added to this fleet.
The number of Indian Air Force squadrons has been reduced to 29 from an approved number of 42, and MiG-21 fighters have been completely phased out. Consequently, there is a need to accelerate the implementation of the MRFA program. The experience of using Indian weaponry on Rafales during Operation Sindoor, along with pressure from the government at the national level from Paris, prompted Dassault to give this consent.
This agreement will not only enhance military potential but also strengthen domestic defense industry. Overall, it indicates both the strengthening of India's defense self-reliance and the robustness of the strategic partnership with France. Successful negotiations could lead to a significant improvement in the Air Force's combat capabilities.