The Defence Acquisition Council (DAC), led by Defence Minister Rajnath Singh, on Thursday approved the procurement of 114 Rafale fighter jets, a move set to significantly enhance the Indian Air Force's operational capability, defence sources close to the development told India Today TV. The clearance of the mega Rs 3.25 lakh crore deal came ahead of French President Emmanuel Macron's visit later this month.
Sources said that the DAC granted the Acceptance of Necessity (AoN) for the multi-billion-dollar programme. The Defence Procurement Board, chaired by the Defence Secretary, had already cleared the Rafale acquisition proposal last month, bringing formal negotiations with Dassault Aviation closer to conclusion.
Valued at roughly Rs 3.25 lakh crore, the deal is among India's largest fighter aircraft procurements. The announcement came as the
IAF is grappling with an acute squadron shortfall, operating around 29 fighter squadrons against a sanctioned strength of 42 amid rising threat perceptions along India's western and northern borders.
Rafale jets are manufactured by French defence major Dassault Aviation.
Under the plan, 18 jets will be delivered in fly-away condition, while the remaining 96 will be assembled in India. Around 80 per cent of the fleet is projected to be manufactured domestically, with indigenous content potentially reaching 60 per cent under the Make in India initiative.
The IAF will induct 88 single-seat and 26 twin-seat variants, sources said. Dassault Aviation is likely to partner with Indian private sector companies for local manufacturing, assembly, and support, strengthening India's domestic defence production ecosystem.