India finalises 114‑jet Rafale deal with Dassault, emphasizing local production

Dassault Aviation is restructuring its approach to India's planned purchase of 114 Rafale multi‑role fighter aircraft, aiming to avoid problems that doomed the earlier 126‑jet MMRCA tender. Under the new arrangement Dassault will assume full responsibility for the jets, choose its own Indian partners and carry out ground and flight testing in India, giving tighter control over quality, delivery and liability.

The deal, valued at about Rs 3.25 lakh crore (≈US 40 bn), includes co‑production of fuselage sections by Tata Advanced Systems in Hyderabad from 2028, and will integrate indigenous weapons such as the Astra air‑to‑air missile and the BrahMos‑NG cruise missile. The programme is intended to expand the Indian Air Force’s fleet to 176 aircraft and boost domestic aerospace capabilities, addressing the earlier lack of clear guarantees and a single‑partner supply chain.