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India Approves Historic Rs 3.25 Lakh Crore Deal to Procure 114 Rafale Jets for IAF

The Defence Acquisition Council has cleared the largest-ever defence procurement in India’s history, greenlighting 114 Rafale fighter jets to boost the Indian Air Force’s capabilities 

12-02-2026
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India has given the go-ahead for a massive Rs 3.25 lakh crore deal to acquire 114 Rafale fighter jets for the Indian Air Force (IAF), marking the largest defence purchase in the nation’s history. The Defence Acquisition Council (DAC), led by Defence Minister Rajnath Singh, approved the proposal by granting Acceptance of Necessity (AoN). The decision comes ahead of French President Emmanuel Macron’s upcoming official visit to New Delhi.

The plan includes purchasing 18 Rafale aircraft directly from Dassault Aviation in France, while the remaining 96 jets will be produced in India, supporting the government’s ‘Make in India’ initiative. The programme will also involve the transfer of advanced fighter jet technologies, strengthening India’s domestic aerospace capabilities. The acquisition now awaits final approval from the Cabinet Committee on Security, chaired by Prime Minister Narendra Modi.

Beyond the Rafale jets, the DAC accorded AoN for multiple defence projects valued at approximately Rs 3.60 lakh crore. For the IAF, this includes combat missiles, and Air-Ship Based High Altitude Pseudo Satellites (AS-HAPS) for persistent surveillance, intelligence gathering, electronic reconnaissance, and remote sensing. The Multi-Role Fighter Aircraft (MRFA) programme is expected to enhance the IAF’s air dominance and long-range strike capabilities.

The Army received approval for Vibhav anti-tank mines and upgrades to Armoured Recovery Vehicles (ARVs), T-72 tanks, and BMP-II Infantry Combat Vehicles, extending their operational life and strengthening defensive capabilities.

For the Navy, AoN was granted for a 4 MW Marine Gas Turbine-based electric generator under the Make-I category and additional P-8I Long Range Maritime Reconnaissance aircraft, enhancing anti-submarine warfare, surveillance, and maritime strike potential. The Indian Coast Guard will acquire Electro-Optical/Infra-Red systems for Dornier aircraft.

Currently, the IAF operates 36 Rafale aircraft, with the last batch delivered in December 2024. In parallel, India has ordered 26 Rafale ‘M’ jets for the Navy at Rs 63,000 crore, which will be deployed on INS Vikrant and INS Vikramaditya, complete with maintenance, logistics, and personnel training under an MRO arrangement.

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