India plans record ₹2 lakh crore deal to buy 114 Rafale jets under ‘Made in India’ program, Defence Ministry reviews IAF proposal

The Defence Ministry is currently reviewing a proposal from the Indian Air Force (IAF) to procure 114 Rafale fighter jets under a “Make in India” scheme. Estimated at over ₹2 lakh crore, this potential deal involves collaboration between France’s Dassault Aviation and Indian aerospace companies and aims to include more than 60% indigenous parts. If approved, it will be one of the biggest defence purchases in India’s history.

What the Proposal Contains

  • The IAF has submitted what is called a Statement of Case (SoC) proposing the deal.
  • The aircraft are to be built jointly: Dassault Aviation will collaborate with Indian aerospace firms. The manufacturing will happen under the “Made-in-India” plan.
  • Over 60% of the components are expected to be indigenously made.

Procedural Steps Underway

  • The proposal is with the Defence Ministry, which is examining it with various wings including finance.
  • After internal review, it will go to the Defence Procurement Board (DPB). If the DPB approves, it would move to the Defence Acquisition Council, which makes final decisions.

Why This Deal Matters

  • If this deal is finalized, India’s Rafale fleet would increase significantly. Already, the IAF operates 36 Rafale jets. The Navy also has orders for additional Rafales.
  • This acquisition would not just add numbers but also strengthen India’s domestic defence manufacturing capacities. Making more parts in India means less dependency on imports.

Strategic and Operational Context

  • The IAF has often expressed concerns over maintaining its squadron strength, especially with older aircraft being phased out. This proposal is seen as a response to those concerns.
  • There is also pressure from regional security dynamics, which adds urgency to accelerating fighter jet procurement and enhancing operational readiness.

Challenges & Key Considerations

  • Ensuring that over 60% local content can be met without compromising quality or delivery timelines will be a test.
  • Costs, both monetary and logistical, are large. The proposed figure (~₹2 lakh crore) makes this a very high-stakes purchase.
  • The approval process has several stages and may take time, including procurement board approvals and meeting defence-production standards.

Conclusion:

The IAF’s proposal to acquire 114 Rafale jets under a Make-in-India framework could be a landmark in India’s defence push. If it goes through, it could significantly boost India’s domestic aerospace and defence industry and improve the country’s air combat capability. The coming weeks and months will be crucial as the proposal goes through evaluation and approvals.

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