Historic DAC Nod: 114 Rafales to Be Built in India, Boosting Indigenous Defence Manufacturing.

On February 12, 2026, India’s Defence Acquisition Council (DAC) officially cleared the “mother of all defence deals”—the procurement of 114 Rafale Multi-Role Fighter Aircraft (MRFA) for the Indian Air Force (IAF). Valued at approximately ₹3.25 lakh crore ($36 billion), the project is set to transform India into the first global manufacturing hub for the Rafale outside of France.

This approval comes just days before French President Emmanuel Macron’s visit to India (February 17–19, 2026), where final strategic protocols are expected to be discussed.

The “Make in India” Roadmap

Following the model of the C-295 transport aircraft project, the Rafale program will move from direct import to full-scale domestic production.

• Delivery Split: 18 to 20 aircraft will be delivered in “fly-away” condition from France. The remaining 94 to 96 aircraft will be manufactured entirely in India.
• Localization Target: Defence Secretary Rajesh Kumar Singh confirmed a localization goal of 40% to 50%, with the intent to eventually push past 60% indigenous content.
• Key Feature: For the first time, India will have the full authority to integrate domestic weapons (like the Astra and Rudram missiles) and Indian-designed sensors onto the Rafale platform.

Strategic Manufacturing Hubs

Dassault Aviation is decentralizing its global supply chain to anchor it in India through two primary industrial clusters:

1. Nagpur (Maharashtra): The Dassault Reliance Aerospace Limited (DRAL) facility at Mihan-SEZ is the frontrunner to host the Final Assembly Line (FAL). Projected to produce up to 24 jets annually, it could become Dassault’s second-largest global production site.
2. Hyderabad (Telangana): Through a landmark partnership signed with Tata Advanced Systems Limited (TASL) in June 2025, Hyderabad will manufacture the complete Rafale fuselage and key structural sections, with production starting in FY2028.
3. Engine Assembly: Safran (the M88 engine maker) has announced plans to set up an engine assembly and MRO (Maintenance, Repair, and Overhaul) line in India to support the growing fleet of 150+ Rafales (including IAF and Navy variants).

Project Timeline

The deal aims to reverse the decline in the IAF’s squadron strength, which currently sits at just 29 squadrons.