What Happened
- India's Defence Acquisition Council (DAC) approved the procurement of 114 Rafale fighter jets from France in a deal estimated at Rs 3.25 lakh crore (~$40 billion)
- Of the 114 aircraft, 18 will be supplied in fly-away condition by Dassault Aviation, while the remaining 96 will be co-produced in India with over 50% indigenous content
- French President Emmanuel Macron, visiting India from February 17-19, endorsed Indian manufacturing and job creation under the deal
- The agreement is structured as a government-to-government (G2G) Inter-Governmental Agreement (IGA), bypassing the standard competitive procurement route
- India and France simultaneously elevated their bilateral relationship to a "Special Global Strategic Partnership"
Static Topic Bridges
Defence Acquisition Procedure (DAP 2020) — Procurement Categories
India's Defence Acquisition Procedure 2020 governs all capital defence procurements. It classifies acquisitions into categories based on indigenisation levels: Buy (Indian-IDDM) receives the highest priority, followed by Buy (Indian), Buy and Make (Indian), Buy and Make, and Buy (Global). A new category, Buy (Global-Manufacture in India), was introduced to encourage foreign OEMs to set up manufacturing entities in India. Inter-Governmental Agreements (IGAs) are a separate route that bypasses standard competitive bidding.
- DAP 2020 replaced Defence Procurement Procedure (DPP) 2016; the latest version prioritises indigenous design and development
- The offset clause requires vendors in Buy (Global) deals worth over Rs 2,000 crore to invest 30% of the estimated cost in Indian defence industry
- In IGA-based single-vendor procurements, offset obligations do not apply
- The Defence Acquisition Council (DAC), chaired by the Defence Minister, grants Acceptance of Necessity (AoN); the Cabinet Committee on Security (CCS) gives final approval for major deals
Connection to this news: The 114 Rafale deal is structured as a G2G IGA, similar to the 2016 deal for 36 Rafales. While this bypasses competitive bidding and offsets, the Make in India component (96 aircraft produced domestically with 50% indigenous content) aligns with DAP 2020's indigenisation thrust.
India-France Defence and Strategic Partnership
France was the first Western power to establish a Strategic Partnership with India on January 26, 1998, and notably did not impose sanctions after India's 1998 nuclear tests. The relationship has deepened through multiple defence platforms, including the Mirage 2000 (acquired in the 1980s), the P-75 Scorpene submarine programme (six submarines at Mazagon Dock, Mumbai), and 36 Rafale jets (IGA signed September 2016, all delivered by April 2022). In February 2026, ties were elevated to a "Special Global Strategic Partnership."
- Strategic Partnership: 1998; elevated in 2023 (Horizon 2047 roadmap at 25th anniversary); further elevated to "Special Global Strategic Partnership" in February 2026
- Rafale original deal: 36 aircraft signed in September 2016 for Euro 7.8 billion; all delivered 2019-2022 to Ambala and Hashimara air bases
- P-75 Scorpene project: Six submarines, last (INS Vagsheer) commissioned in 2025
- New 2026 outcomes: BEL-Safran JV for HAMMER missile production in India; reciprocal deployment of military officers; Joint Advanced Technology Development Group for co-developing emerging technologies
Connection to this news: The 114 Rafale deal and Macron's endorsement of Indian manufacturing mark the largest single defence acquisition in India's history and deepen the France-India defence-industrial partnership, with significant technology transfer and domestic production commitments.
IAF Squadron Strength and Fighter Fleet Modernisation
The Indian Air Force has a sanctioned strength of 42 fighter squadrons but has been operating at approximately 30-31 squadrons, well below the requirement assessed for a two-front conflict scenario. The IAF's fighter fleet modernisation strategy involves a mix of indigenous and imported platforms: the indigenous LCA Tejas Mk1/Mk1A, the under-development AMCA (Advanced Medium Combat Aircraft), and imported platforms like the Rafale and Su-30MKI.
- Sanctioned strength: 42 squadrons; operational strength: ~30-31 squadrons (each squadron has 16-18 aircraft)
- Ageing fleet retirements: MiG-21 (retiring), Jaguar (phasing out), Mirage 2000 (mid-life upgrade completed)
- Indigenous platforms: LCA Tejas Mk1A (83 on order from HAL), AMCA (5th generation, under development by DRDO/ADA)
- Current Rafale fleet: 36 (2016 deal); once 114 more are added, total Rafale fleet will reach ~150 for the IAF
Connection to this news: The 114-Rafale acquisition is aimed at addressing the critical shortfall in IAF squadron strength, with domestic manufacturing of 96 aircraft intended to build long-term aerospace production capability at HAL and private partners.
Key Facts & Data
- DAC approval date: February 12, 2026
- Deal value: Rs 3.25 lakh crore (~$40 billion)
- Total Rafale for IAF: 114 (18 fly-away + 96 Make in India); Navy to induct 26 Rafale-Marine carrier variants separately
- Indigenous content target: 50% (to be achieved in phases)
- Original 2016 deal: 36 Rafales for Euro 7.8 billion; all delivered by April 2022
- IAF current squadron strength: ~30-31 out of sanctioned 42
- India-France Strategic Partnership: established January 26, 1998; elevated to "Special Global Strategic Partnership" in February 2026
- Rafale specifications: 4.5-generation twin-engine multirole fighter, max speed Mach 1.8, combat radius 1,000+ km