India and France are moving closer to a major follow-on Rafale agreement for the Indian Air Force (IAF), with talks expected to accelerate ahead of French President Emmanuel Macron’s visit to India in February 2026.
According to new Indian media reports, New Delhi is examining a government-to-government framework that would combine a large IAF order with expanded local manufacturing, as the service looks to plug growing gaps in its fighter inventory.
President Macron is scheduled to travel to India in February 2026 for an AI-focused summit, but French and Indian commentators alike expect defense industrial cooperation, including the Rafale and engine partnership files, to feature prominently in sideline talks.
Talks tied to 114-jet MRFA requirement
The discussions are linked to the IAF’s long-standing requirement for 114 modern fighters under the Multi-Role Fighter Aircraft (MRFA) program. While the exact number of Rafale jets to be included in the current proposal is still under debate, sources quoted in Indian reports claim that the projected requirement of 114 combat aircraft remains the planning baseline.
Over recent months, the IAF has argued for a direct, government-to-government Rafale order for the MRFA, citing the urgency created by squadron drawdowns and the type’s existing logistics and training footprint in India.
Any major procurement would still need to pass through India’s standard approval chain, starting with India’s Defence Acquisition Council, followed by cost negotiations and final sign-off by the Indian Cabinet Committee on Security, along with dedicated budget allocations.
Squadron shortfall adds urgency
The IAF’s case for additional Rafales comes as its fighter strength continues to slide. India retired its last MiG-21s in 2025, a decision that, according to official figures, left the service with around 29 fighter squadrons, well below the authorised level of more than 40.
Delays in the induction of the Tejas Mk1A have added further pressure, prompting the Indian Air Force to consider near-term options that can be fielded quickly and integrated into existing infrastructure.
In that context, a larger Rafale fleet, backed by a deeper industrial footprint in India, is seen as a pragmatic bridge until indigenous programs such as the Advanced Medium Combat Aircraft (AMCA) mature.
Local production at the core of the proposal
Domestic manufacturing is emerging as the central pillar of the prospective deal. In June 2025, Tata Advanced Systems Limited (TASL) and Dassault Aviation signed an agreement to manufacture Rafale fuselage sections at a new facility in Hyderabad, the first such production line outside France. The plant is expected to deliver its first units during the 2028 financial year, ramping up to an output of around 24 fuselages annually for Indian and export orders.
Indian reports add that a broader industrial package is being discussed, which includes a partnership between HAL and Safran for an engine production plant in Hyderabad and a maintenance, repair and overhaul hub near Jewar in Uttar Pradesh, close to the forthcoming Noida International Airport (DXN). Taken together, officials quoted in those reports suggest that eventually up to 60% of Rafale manufacturing by value could be localized in India.
Additional steps toward localizing high-end subsystems are also underway. Thales recently announced a partnership with Indian firm SFO Technologies to produce key wired structures for the Rafale’s RBE2 active electronically scanned array radar.
Rafale’s growing role in Indian air and naval forces
India already operates 36 Rafales in IAF service, delivered under a 2016 inter-governmental agreement with France. In April 2025, New Delhi signed a separate deal for 26 Rafale M carrier-borne fighters for the Indian Navy, with deliveries to be completed by 2030.
The first four Rafale M aircraft are expected to arrive in 2029, with subsequent deliveries phased through 2030 and 2031, providing a benchmark on pricing and timelines for any larger IAF package.
The Rafale is also central to broader Franco-Indian discussions about future combat aviation. France has signaled openness to Rafale F5 upgrades and deeper cooperation on next-generation engines and systems, with Safran’s proposed joint engine program for India’s AMCA cited as a flagship example of this shift from simple acquisition to co-development.