India-France Rafale Deal: India Plans to Acquire ₹3.6 Lakh Crore 114 Rafale Fighter Jets

French President Emmanuel Macron’s state visit to India, marks a landmark moment in bilateral relations with a focus on global security and artificial intelligence. New Delhi has signaled its strategic preference by greenlighting the acquisition of 114 Dassault Rafale fighter jets. It includes 18 jets in fly-away condition and 96 to be manufactured domestically under the 'Make in India' initiative and  marking a new chapter in "Horizon 2047"—the roadmap for the bilateral relationship.

The Both countries jointly inaugurate the India-France Year of Innovation 2026. The French President also attended the AI Impact Summit in New Delhi as part of his official visit to deepen cooperation in Artificial Intelligence and emerging technologies. 

Key Highlights Rafale Deal

The First Mumbai Summit: President Emmanuel Macron has chosen Mumbai as the gateway for his state visit for the first time, On February 17, the two leaders held bilateral discussions at Lok Bhavan, focusing on:

• The Rafale MRFA Deal: Finalizing the industrial modalities for the 114-jet contract.

• Year of Innovation 2026: Launching a year-long celebration of tech collaboration between Indian and French startups.

• Maritime Security: Strengthening the Indo-Pacific axis, with Mumbai serving as the symbolic naval hub.

AI Impact Summit in New Delhi: President Macron will travel to New Delhi to participate in the AI Impact Summit at Bharat Mandapam, New Delhi.

• India AI impact summit is the first of its kind in the Global South, building on the 2025 AI Action Summit co-hosted by PM Modi and Macron in Paris.

• The discussions will center on "Sovereign AI," ethical deployment, and joint research between India’s AI mission and French tech giants like Mistral AI.

The Defence Acquisition Council (DAC) chaired by the Defence Minister has cleared the ₹3.60 lakh crore (approx. $39.7 billion). While this includes other procurements like Boeing P-8I surveillance aircraft and anti-tank mines, the lion's share is dedicated to the 114 Rafale jets and their sophisticated weapons suites. The Deal emphasizes indigenous production includes

• Fly-away Condition: 18 aircraft will be delivered directly from France to meet immediate operational gaps.

• Domestic Production: 96 aircraft will be built in India through a partnership between Dassault Aviation and Indian private sector giants.

• Indigenization Goal: It aims for over 50% indigenous content, fostering a local supply chain for high-end aerospace components.

The 2026 deal focuses on the advance Rafale F4 variant, featuring such as Enhanced Radar: Upgraded RBE2 AESA radar, Network-Centric Warfare: Advanced "Combat Cloud" capabilities, Integration of Meteor (beyond-visual-range), SCALP (cruise missiles), and the newly indigenized HAMMER precision-guided munitions.

French President Emmanuel Macron's India visit strengthens bilateral ties, focusing on defense and AI. India greenlights acquiring 114 Rafale fighter jets, with 96 to be 'Make in India', under a ₹3.6 lakh crore deal. The visit also launched the India-France Year of Innovation 2026 and included an AI Impact Summit, deepening cooperation in emerging technologies and marking a new chapter in the "Horizon 2047" roadmap.