France submitted a techno-commercial proposal to India on 29 July 2026 for 114 Rafale fighter jets valued at about ₹3.25 lakh crore (around $39 billion) under the Multi-Role Fighter Aircraft programme. The Defence Acquisition Council cleared the Acceptance of Necessity in February 2026, and India issued the Letter of Request in May. The Ministry of Defence is examining the proposal.
The deal includes extensive technology transfer for airframes, engines and avionics, with involvement of Safran, Thales and Tata Advanced Systems.
The Indian Air Force currently operates around 30 fighter squadrons against an authorised strength of 42. Reports suggest varying local production ratios, with most aircraft to be assembled or manufactured in India.