India's biggest defence deal incoming: 114 Rafale LoR finalised, 50% indigenous content sought
India's biggest defence deal incoming: 114 Rafale LoR finalised, 50% indigenous content soughtIndia is weeks away from formally initiating one of its largest-ever defence acquisitions. The Letter of Request for 114 Rafale fighter aircraft for the Indian Air Force has been finalised and is expected to be dispatched to France shortly, sources told India Today TV. The proposed deal would go well beyond a straightforward purchase; nearly 90 of the 114 jets are planned to be manufactured in India through a partnership between Dassault Aviation and an Indian firm, with only the remaining aircraft delivered in fly-away condition.
How the process moves from here
The LoR is a formal government-to-government communication used to initiate defence procurement under the Intergovernmental Agreement framework. Once France receives it and responds with details on pricing, availability and logistical support, India will issue a formal Request for Proposal. Negotiations between the two sides will follow, and the final contract will require approval from the Cabinet Committee on Security before it can be signed.
The Defence Acquisition Council has already cleared the procurement proposal. Sources said the expanded Rafale programme has emerged as the leading contender in the Indian Air Force's planned acquisition of 114 next-generation multirole fighter aircraft.
The Make in India dimension
New Delhi has pressed Dassault Aviation to ensure up to 50% indigenous content in the jets proposed for India, a demand expected to feature in the French company's formal bid. India already operates 36 Rafale fighters, and the Navy is preparing to induct 26 Rafale M aircraft for carrier-based operations. The existing operational ecosystem means that expanding the Rafale fleet would also reduce logistics, maintenance and training costs.
The push for domestic manufacturing aligns with both India's Make in India initiative and France's emphasis on strategic autonomy, two priorities that officials say are emerging as the foundation of a deepening industrial partnership. Future collaborations, including fighter aircraft production and combat engine development, are expected to follow co-design and co-production models rather than the conventional buyer-seller arrangement.
What the deal would mean
If concluded, the 114-aircraft deal would represent a structural shift in how India and France approach defence cooperation, moving from transaction to long-term industrial partnership centred on joint design, development and manufacturing. It would also stand as one of the largest single defence acquisitions in India's history, both by scale and by the depth of technological collaboration it would entail.