New Delhi: India has formally requested Dassault Aviation to submit its comprehensive bid for the 114 Multi-Role Fighter Aircraft (MRFA) by the end of April 2026.
This development follows the Defence Acquisition Council’s approval of the Indian Air Force’s proposal last month, marking a pivotal step in bolstering the IAF’s depleting squadron strength.
The MRFA programme, valued at a minimum of ₹2.5 lakh crore as per the Acceptance of Necessity (AON), aims to procure advanced Rafale fighters in F4 and potentially F5 standards. Sources indicate that Dassault must detail costs, the Make in India component, and manufacturing plans, with at least 96 of the jets slated for production within India.
Negotiations will emphasise increasing indigenous content, currently analysed as lower than anticipated, targeting 50-60 per cent or higher. A cost negotiation committee, involving the defence ministry, IAF, Dassault, and French government representatives, will follow the bid submission.
The deal is structured as a government-to-government arrangement, differing from the 2016 process by involving Dassault directly in discussions due to the planned final assembly line (FAL).
This FAL is expected at the Dassault Reliance Aerospace Limited (DRAL) facility in Nagpur, now a Dassault subsidiary following its majority stake acquisition in September 2025.
TATA Advanced Systems Limited (TASL) is already constructing a dedicated facility in Hyderabad to produce Rafale fuselage sections, with initial deliveries slated for fiscal year 2028 and a capacity of up to 24 fuselages annually. This integrates Indian production into Dassault’s global supply chain, supporting both domestic needs and exports.
Multiple Indian firms, including Mahindra, Dynamatic Technologies, and over three dozen others, are poised to participate, enhancing the supply chain. Safran, the engine maker for the Rafale’s M88 turbofans, plans an assembly line and MRO facility in Hyderabad by 2026.
The timeline envisions contract signing by March 2027, with the first 18 jets in fly-away condition delivered from 2030. Local production will ramp up thereafter, with the Nagpur FAL potentially serving global demand as Dassault’s second manufacturing hub.
Benchmark pricing draws from the April 2025 contract for 26 Rafale-M naval jets at $7.4 billion, suggesting the MRFA package could exceed tens of billions of euros. Upgrades for existing 36 IAF Rafales to F4 standard and options for F5 are included.
This procurement addresses the IAF’s squadron shortfall amid regional threats, opting for Rafale over competitors like F-15EX, F/A-18, F-21, and Eurofighter due to faster timelines and established partnerships. French President Emmanuel Macron’s recent visit underscored France’s commitment to meet Indian requirements.
Limited technology transfer persists, with no SPECTRA software source code shared, as reported amid the AoN clearance. The deal aligns with Aatmanirbhar Bharat, positioning India as a key player in global aerospace manufacturing.
