What Happened
- The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, is set to meet in the second week of February 2026 to consider the Acceptance of Necessity (AoN) for the procurement of 114 Rafale fighter jets from France's Dassault Aviation.
- The deal is valued at approximately Rs 3.25 lakh crore (approximately $33 billion), making it India's largest-ever defence procurement.
- The Defence Procurement Board (DPB) cleared the proposal in January 2026, marking a crucial milestone before DAC consideration.
- Of the 114 jets, 18 will be purchased as fly-away aircraft while the remaining 96 will be manufactured in India with approximately 60-80% indigenous content, in partnership with Tata Advanced Systems Limited (TASL).
- The timing is significant as French President Emmanuel Macron is scheduled to visit India for the AI Summit on February 18-20, 2026, and defence cooperation is expected to feature prominently in sideline discussions.
Static Topic Bridges
Defence Acquisition Procedure (DAP) 2020 — India's Procurement Framework
The Defence Acquisition Procedure (DAP) 2020 replaced the Defence Procurement Procedure (DPP) 2016 and governs how India procures military equipment. It establishes a multi-layered approval process designed to promote indigenisation under the Atmanirbhar Bharat framework.
- DAP 2020: Notified on September 30, 2020 by Defence Minister Rajnath Singh
- Procurement hierarchy: Services Qualitative Requirements (SQR) → Acceptance of Necessity (AoN) by DAC → Request for Proposal (RFP) → Technical & Commercial Evaluation → Contract Negotiation Committee (CNC) → Approval by CCS (for high-value deals)
- Defence Acquisition Council (DAC): Highest decision-making body for procurement; chaired by Defence Minister; members include CDS, three service chiefs, Defence Secretary, Secretary (Defence Production), DRDO chief
- Defence Procurement Board (DPB): Chaired by Defence Secretary; makes recommendations to DAC
- Cabinet Committee on Security (CCS): Chaired by Prime Minister; provides final approval for major strategic acquisitions
- Eight procurement categories in order of priority: (1) Buy (Indian-IDDM), (2) Buy (Indian), (3) Buy and Make (Indian), (4) Buy (Global-Manufacture in India), (5) Buy (Global), (6) Make, (7) Design and Development (D&D), (8) Strategic Partnership Model (SPM)
- Indigenous content requirements: Buy (Indian-IDDM) minimum 50%; Buy (Indian) minimum 50%; Buy and Make (Indian) minimum 50% in production phase
Connection to this news: The 114 Rafale deal would likely fall under the "Buy (Global-Manufacture in India)" category — 18 fly-away jets purchased directly and 96 manufactured in India with technology transfer. The AoN approval by DAC is the first major decision point; the deal would subsequently require CCS approval given its strategic value.
India-France Defence Cooperation and Strategic Partnership
India and France established a Strategic Partnership in 1998, the first such partnership France formed outside the EU. Defence cooperation is a cornerstone of this relationship, spanning fighter aircraft, submarines, missiles, and space technology.
- Strategic Partnership established: 1998
- Key defence cooperation milestones:
- Scorpene-class (Kalvari-class) submarines: 6 submarines built at Mazagon Dock (Mumbai) with Naval Group technology transfer; contract signed 2005; all 6 delivered by 2024
- Rafale fighter jets (first deal): 36 jets under Inter-Governmental Agreement (IGA) signed September 2016; first delivery September 2019; based at Ambala (No. 17 Squadron) and Hashimara (No. 101 Squadron)
- Rafale Marine (Navy): 26 jets (22 single-seat Rafale M, 4 twin-seat Rafale D) under IGA signed in 2025; deliveries from 2028
- Proposed 114 Rafale (IAF): Under consideration; if cleared, total Rafale fleet would reach 176 across IAF and Navy
- Manufacturing partnership: Tata Advanced Systems Limited (TASL) signed contract with Dassault Aviation (June 2024) for domestic Rafale production
- Rafale MRO (Maintenance, Repair, Overhaul) facility operational at IAF Ambala; another planned at Hyderabad (by late 2026)
- France is India's second-largest defence partner in Europe and among top-5 globally
Connection to this news: The 114-jet deal represents a massive deepening of India-France defence ties. With domestic manufacturing of 96 jets through TASL-Dassault, it aligns with Make in India in defence. The timing ahead of Macron's visit indicates diplomatic signalling to strengthen the bilateral partnership.
Make in India in Defence — Indigenisation and Self-Reliance
The Make in India initiative in defence, launched as part of the broader Atmanirbhar Bharat (self-reliant India) framework, aims to reduce India's dependence on foreign arms imports and build domestic defence manufacturing capacity. India was the world's largest arms importer for several years until recently.
- India's defence import dependency: India was the world's top arms importer from 2019-2023 (SIPRI data), though the share of domestic procurement has been increasing
- Positive Indigenisation Lists: Four lists issued (December 2021, March 2022, August 2022, August 2023) covering 509 items with phased import ban timelines
- Defence Production Corridors: Two corridors established — Tamil Nadu (Chennai-Hosur-Salem-Coimbatore-Tiruchirappalli) and Uttar Pradesh (Agra-Aligarh-Lucknow-Kanpur-Jhansi-Chitrakoot)
- FDI in defence: Automatic route up to 74%; government route up to 100% for cases involving modern technology
- Strategic Partnership Model (SPM): Introduced in DPP 2016, retained in DAP 2020; designates Indian private companies as Strategic Partners for specific platform categories (submarines, fighter aircraft, helicopters, armoured vehicles)
- Defence exports target: India aims for Rs 50,000 crore ($6 billion) in annual defence exports by 2028-29
Connection to this news: The 114 Rafale deal, with 96 jets to be manufactured in India with 60-80% indigenous content, is a significant test case for Make in India in defence. The TASL-Dassault partnership for domestic Rafale production could create an aerospace manufacturing ecosystem, generate employment, and develop indigenous technical capabilities in fighter jet production, maintenance, and overhaul.
Key Facts & Data
- Deal value: Rs 3.25 lakh crore (~$33 billion) for 114 Rafale jets
- Breakdown: 18 fly-away + 96 manufactured in India (60-80% indigenous content)
- DAC composition: Chaired by Defence Minister; includes CDS, three service chiefs, key secretaries
- DPB cleared the proposal: January 2026
- Existing IAF Rafale fleet: 36 jets (from 2016 IGA, delivered 2019-2022), based at Ambala and Hashimara
- Navy Rafale Marine order: 26 jets (IGA signed 2025, deliveries from 2028)
- If 114-jet deal proceeds, total Rafale fleet: 176 (36 + 26 + 114)
- India-France Strategic Partnership: Established 1998
- Manufacturing partner: Tata Advanced Systems Limited (TASL)
- Macron's India visit: February 18-20, 2026 (AI Summit)