The government on Thursday initially approved a ₹3.6 trillion spending plan to strengthen the country’s armed forces. The proposal includes the purchase of 114 Rafale fighter jets for the air force and Boeing P-8I surveillance aircraft for the navy, an official statement said.
Rising tensions with neighboring countries, particularly Pakistan, have increased pressure on India to modernize its military. For many years, India relied heavily on imports of weapons and equipment, but recently the government has pushed for more defense manufacturing in the country.
The purchase of Multi-Role Fighter Aircraft (MRFA) will strengthen the Indian Air Force’s (IAF) ability to dominate the skies in various types of conflicts and will significantly enhance the IAF’s deterrence capabilities through long-range strike power, the Defense Ministry said.
In view of the push for domestic production, most of the aircraft under the deal will be manufactured in India, boosting local defense manufacturing, the statement added.
What does the Rafale order mean for India?
According to analysts, the large Rafale order could significantly strengthen India’s position in global defense aviation. Goldman Sachs said it recently spoke with Ashish Saraf, vice president and director of Pratt & Whitney India, to understand the deal’s impact on India’s aerospace ecosystem.
If the order for 114 Rafales goes through, India would become the largest user of the Rafale with more than 175 aircraft, Saraf Goldman Sachs said, including 36 already in service and 26 previously purchased Rafale-Ns. He also pointed out that there is a big opportunity in maintenance and servicing (MRO), especially with the 80 Rafale F-4 fighter jets ordered by the UAE.
In total, this creates an MRO market for more than 250 fighters, including spare parts and consumables. Domestic aero component companies are expected to benefit from this and could help position India as a regional MRO hub.
Macron will visit India next week
The Ministry of Defense noted that the Defense Acquisition Council has given initial approval to buy additional Rafale fighters and missiles for the Air Force, anti-tank missiles for the Army and P-8I reconnaissance aircraft for the Navy.
The total value of all these suggestions is ₹3.6 million crowns, the official statement said. However, he did not elaborate further.
The approval comes ahead of French President Emmanuel Macron’s visit to India next week. The Indian Air Force’s fleet currently includes Dassault Aviation’s Rafale fighters, according to Reuters.