France backs ‘Make in India’ in defence, signals new model for Rafale deal ahead of Modi visit

French diplomatic sources signalled that future defence cooperation with India will be anchored in the 'Make in India' initiative and structured as an "equal...

What Happened

French diplomatic sources signalled that future defence cooperation with India will be anchored in the 'Make in India' initiative and structured as an "equal partnership" — a departure from the buyer-seller model of earlier procurement.
A new Rafale deal framework is being discussed: 18 aircraft to be supplied by Dassault Aviation in fly-away condition, with the remainder to be manufactured in India with approximately 50% indigenous content.
France expressed optimism about deepening civil nuclear cooperation with India, citing recent Indian legislative reforms permitting private sector participation in nuclear power.
The bilateral engagement coincides with a visit by the Prime Minister to France for the G7 Summit outreach sessions, where a bilateral meeting with the French President is scheduled.
As many as 12 new bilateral initiatives are expected to be announced during the visit.
French sources described India as a "top priority" partner within their foreign policy framework.

Static Topic Bridges

India-France Strategic Partnership — History and Horizon 2047

India and France established a Strategic Partnership on 26 January 1998 — India's first formal strategic partnership with a Western nation and France's first outside the European Union. The partnership has since been elevated to a Special Global Strategic Partnership. In July 2023, both countries adopted the "Horizon 2047" roadmap — a long-term bilateral framework aligned with the centenary of India's independence (2047), 100 years of diplomatic ties, and 50 years of the strategic partnership.

Strategic Partnership established: 26 January 1998.
Elevated to Special Global Strategic Partnership: July 2023.
Horizon 2047 pillars: Security, Planet, People.
Key cooperation domains: defence, civil nuclear energy, space (ISRO-CNES), critical technologies, Indo-Pacific stability, climate action.
France is a P5 member (UN Security Council) and a key partner in India's "multi-alignment" foreign policy doctrine.
India and France conduct joint military exercises: SHAKTI (Army), VARUNA (Navy), GARUDA (Air Force).

Connection to this news: The new "Make in India" co-development model for the Rafale deal is a direct expression of the Horizon 2047 framework, which commits both sides to transitioning from procurement to joint production and technology transfer.

Rafale Fighter Aircraft — Procurement History and Current Deal

The Rafale is a twin-engine multirole fighter manufactured by Dassault Aviation of France. India's first Rafale procurement was formalised under an Inter-Governmental Agreement (IGA) signed in September 2016 for 36 fly-away aircraft at a cost of approximately €7.8 billion. The aircraft entered Indian service from September 2019, and are now based at Ambala (IAF, 17 Squadron "Golden Arrows") and Hasimara (IAF, 101 Squadron "Falcons").

2016 IGA: 36 fly-away Rafales, €7.8 billion (~₹59,000 crore at 2016 rates); offset obligation of 50% of contract value to be reinvested in India's defence sector.
First delivery to IAF: September 2019; fully delivered by 2022.
In April 2024, India signed a separate IGA for 26 Rafale-Marine aircraft for the Indian Navy (for INS Vikrant and future carrier operations).
Proposed new deal (2026): 18 fly-away + remainder manufactured in India with ~50% indigenous content — a "Make in India" co-production model distinct from both the 2016 purchase and the 2024 Navy deal.
Defence procurement category under Defence Acquisition Procedure (DAP) 2020: the new model would likely qualify under "Buy & Make (Indian)" or a special IGA variant.
Rafale specifications: Mach 1.8 top speed, omnidirectional AESA radar (RBE2-AA), Meteor BVR missile, SCALP cruise missile.

Connection to this news: The shift to a co-production model with 50% indigenous content represents an evolution from the 2016 fly-away deal, aligning the Rafale acquisition with India's push to build a domestic defence manufacturing ecosystem.

Make in India in Defence — Policy Framework and Defence Acquisition Procedure

The "Make in India" initiative in defence is operationalised through the Defence Acquisition Procedure (DAP, latest version 2020) and the Defence Production and Export Promotion Policy (DPEPP) 2020. The policy categorises procurements by indigenisation level: Buy (Indian-IDDM), Buy (Indian), Buy & Make (Indian), Buy & Make, and Buy (Global). The objective is to achieve ₹1.75 lakh crore in defence production and ₹35,000 crore in exports by 2025.

DAP 2020: replaced DPP 2016; introduces "Leasing" and "Buy (Global — Manufacture in India)" categories.
IDDM category: highest preference — indigenously designed, developed, and manufactured (minimum 50% indigenous content for design + development projects; 60% for others).
Positive Indigenisation Lists: three lists published (2020, 2021, 2022) of items banned from import, to be sourced domestically; covers over 500 defence items.
Defence Industrial Corridors: Uttar Pradesh (Lucknow–Agra–Aligarh–Jhansi–Kanpur) and Tamil Nadu (Chennai–Coimbatore–Hosur–Salem–Tiruchirappalli) — announced 2018, operationalising since 2020.
Offset Policy (pre-DAP 2020): 30% offset for contracts over ₹2,000 crore; removed from DAP 2020 for future contracts (replaced by focus on Make in India categories).

Connection to this news: The proposed Rafale co-production arrangement with ~50% indigenous content maps directly onto India's IDDM categorisation — an upgrade from the 2016 offset model to genuine technology transfer and local manufacturing.

India-France Civil Nuclear Cooperation — Jaitapur and Legislative Reforms

Civil nuclear cooperation is one of the most substantive pillars of India-France ties. The Jaitapur Nuclear Power Plant in Maharashtra — proposed to host six EPR (European Pressurised Reactor) units by EDF (Électricité de France) — has been under negotiation for over a decade. In 2025, India enacted legislative amendments permitting private sector participation in nuclear power, which France has welcomed as opening new avenues.

Jaitapur Nuclear Power Plant (Maharashtra): 6 × EPR units, total ~9,900 MWe — would be the world's largest nuclear power station by capacity; negotiation ongoing since 2009.
EPR reactor: 1,650 MWe Generation III+ pressurised water reactor; operating plants in China and Finland.
India-France Civil Nuclear Agreement: signed 2008.
India's Atomic Energy Act, 1962 (amended): historically restricted nuclear power to public sector; 2025 amendments introduced a framework for private sector investment in nuclear energy [Unverified — specific amendment bill name/number to be confirmed].
India's civil nuclear programme also involves cooperation with the US (123 Agreement, 2008), Russia (Kudankulam), and South Korea.
Horizon 2047 includes a Special Task Force on civil nuclear energy and a Declaration of Intent on Small and Advanced Modular Reactors (SMR/AMR), signed 2025.
India's nuclear energy target: 100 GW nuclear capacity by 2047.

Connection to this news: France's optimism about nuclear cooperation is anchored in India's recent legislative opening of the nuclear sector to private participation, which removes a structural barrier that had stalled the Jaitapur project and other bilateral nuclear ventures for years.

Key Facts & Data

India-France Strategic Partnership established: 26 January 1998.
Elevated to Special Global Strategic Partnership: July 2023.
Horizon 2047 roadmap adopted: July 2023.
2016 Rafale IGA: 36 fly-away aircraft, ~€7.8 billion, first delivered September 2019.
2024 Navy Rafale-Marine IGA: 26 aircraft for Indian Navy carrier operations.
Proposed 2026 deal: 18 fly-away + balance manufactured in India (~50% indigenous content).
India's defence production target: ₹1.75 lakh crore output, ₹35,000 crore exports by 2025 (DPEPP 2020).
Jaitapur NPP: 6 EPR units × 1,650 MWe = ~9,900 MWe; site in Maharashtra; negotiations ongoing since 2009.
India's nuclear target: 100 GW by 2047.
Joint military exercises: SHAKTI (Army), VARUNA (Navy), GARUDA (Air Force).
Bilateral initiatives expected during 2026 visit: ~12 new announcements.