India Approves ₹3.6 Lakh Crore Defence Deals Including 114 Rafale Jets & P-8I Aircraft

India Approves $4.5 Billion Defense Upgrade, Including 114 Rafale Jets

New Delhi – In a significant move to bolster its military capabilities, India’s Defence Acquisition Council (DAC) on Thursday cleared defense procurements totaling ₹3.6 lakh crore (approximately $4.5 billion), including the purchase of 114 Rafale fighter jets, six P-8I long-range maritime surveillance aircraft and SCALP deep-strike cruise missiles. The decision comes as India seeks to modernize its armed forces amid rising regional tensions.

The procurement of the Rafale multi-role fighter aircraft (MRFA) is expected to significantly enhance the Indian Air Force’s (IAF) ability to secure air dominance and strengthen its long-range offensive and deterrence posture, according to a statement released by the defense ministry. A majority of the aircraft will be manufactured in India, supporting the government’s “Make in India” initiative.

France is expected to supply 18 Rafale jets in fly-away condition, while the remaining 96 will be produced domestically. The development aligns with ongoing discussions with France regarding the localization of Rafale manufacturing in India, the integration of locally sourced weapons systems, and other India-specific requirements.

The DAC’s approval comes ahead of French President Emmanuel Macron’s visit to India from February 17-19, where he is scheduled to launch the India-France Year of Innovation alongside Prime Minister Narendra Modi and attend the Artificial Intelligence Impact Summit. A key meeting between Modi and Macron is planned in Mumbai on February 17.

The Rafale capability boost is estimated to cost around ₹3.25 lakh crore. While the DAC has granted Acceptance of Necessity (AoN) for the procurement, a formal deal is still some time away. The next steps involve a tender process, technical discussions, cost negotiations, and final approval from the Cabinet Committee on Security.

Strategic affairs expert Air Marshal Anil Chopra (retd) emphasized the critical nature of the procurement, stating, “The procurement is critical for capability building as the IAF is down to 29 fighter squadrons compared to an authorised 42.5. The new Rafales will incorporate the latest technologies. Also, it will be a big boost for Make in India.”

The IAF currently operates 36 Rafale fighter jets, acquired from France in 2016 at a cost of ₹59,000 crore. Some of these aircraft were reportedly used during Operation Sindoor in May 2025, involving strikes against targets in Pakistan and Pakistan-occupied Kashmir following a terrorist attack in Pahalgam that killed 26 people.

In April 2025, India also ordered 26 Rafale Marine fighter jets from France for the Indian Navy, intended for operation from its two aircraft carriers. Deliveries of the Rafale M are expected to begin in 2029 and be completed by 2031.

Beyond the Rafale acquisition, the DAC also approved the purchase of six P-8I long-range maritime reconnaissance aircraft from the United States. These aircraft will enhance the Indian Navy’s capabilities in anti-submarine warfare, surveillance, and maritime strike operations. The navy currently operates 12 Boeing-made P-8I planes, and the new acquisition is estimated to cost around ₹28,000 crore.

The approved procurements also include SCALP missiles for the IAF’s existing Rafale fleet, providing standoff ground attack capabilities. The council cleared the acquisition of high-altitude pseudo-satellites for intelligence, surveillance, and reconnaissance (ISR) missions, as well as the procurement of Vibhav anti-tank mines and the overhaul of T-72 tanks and BMP-II infantry combat vehicles.

In a separate development on Thursday, the defense ministry signed a ₹2,312-crore contract with Hindustan Aeronautics Limited (HAL) for eight Dornier 228 aircraft and related equipment for the Indian Coast Guard.