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Emmanuel Macron's India visit sparks $40 billion Indian Air Force Rafale mega deal talks with PM Modi

The deal is expected to be signed in the coming months and is poised to become one of India's largest ever defence acquisitions

By Trisha Katyayan

Feb 17, 2026 21:31 IST

French President Emmanuel Macron arrived in New Delhi on February 17 for a three-day state visit, holding wide-ranging talks with Prime Minister Narendra Modi under the India–France Strategic Partnership. Among the most consequential outcomes expected from the visit is a proposed government-to-government defence agreement worth nearly USD 40 billion for the purchase of 114 Rafale fighter aircraft. The deal is expected to be signed in the coming months and is poised to become one of India's largest ever defence acquisitions.

Also Read | French President Emmanuel Macron on his fourth India visit: What’s on the agenda?

Why the Indian Air Force needs the jets

The Indian Air Force (IAF) is currently operating with 29 fighter squadrons against an authorised strength of 42, creating an urgent capability gap. In comparison, Pakistan fields about 25 fighter squadrons, while China operates more than 60 and continues to induct large numbers of fourth and fifth-generation aircraft annually. Delays in deliveries of the indigenous Light Combat Aircraft (LCA) Tejas, manufactured by Hindustan Aeronautics Ltd (HAL), have added to the pressure for faster fleet expansion.

India already operates 36 Rafale jets procured in 2016, while the Indian Navy recently acquired 26 naval variants for deployment on aircraft carrier INS Vikrant.

Capabilities of the Rafale

The Rafale is a multirole fighter with an unrefuelled range of around 1,800 kilometres and the ability to carry roughly nine tonnes of weapons across 14 hard points. Designed for versatility, it can switch between missions such as air superiority, deep strike, reconnaissance, suppression of enemy air defences, maritime strike and nuclear delivery with minimal turnaround time.

Also Read | 'India looks forward to your visit': PM Modi welcomes Emmanuel Macron as France President lands in Mumbai

Boost to domestic manufacturing

A notable feature of the proposed agreement is the creation of a second fighter aircraft production line in India, outside the state-owned HAL. Private sector firms such as Tata Advanced Systems Ltd, Bharat Forge, and Larsen & Toubro have been drawn into advanced aerospace manufacturing in recent years. Most of the new aircraft are expected to be assembled in India, likely at the Dassault Reliance Aerospace Limited facility in Nagpur, with major components produced locally.

This shift signals a gradual opening of military aircraft manufacturing to private industry, ending HAL’s long-standing monopoly and potentially widening sourcing options for the armed forces.

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French President Emmanuel Macron on his fourth India visit: What’s on the agenda?

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