The government on Thursday gave an initial approval for a ₹₹3.6 trillion spending plan to strengthen the country’s armed forces. The proposal includes purchasing 114 Rafale fighter jets for the air force and Boeing P-8I surveillance aircraft for the navy, according to an official statement.
Rising tensions with neighboring countries, especially Pakistan, have increased the pressure on India to upgrade its military. For many years, India has relied heavily on importing weapons and equipment, but in recent times, the government has pushed for more defense manufacturing within the country.
The purchase of Multi-Role Fighter Aircraft (MRFA) will strengthen the Indian Air Force (IAF)’s ability to control the skies across different types of conflict and significantly boost the IAF’s deterrence capabilities through long-range strike power, according to the Ministry of Defence.
In view of the domestic manufacturing push, most of the aircraft under the deal will be made in India, thereby supporting local defense manufacturing, the statement further added.
What does the Rafale order mean for India?
According to analysts, the large Rafale order could significantly strengthen India’s position in the global defense aviation. Goldman Sachs said that it recently spoke with Ashish Saraf, Vice President and Country Head of Pratt & Whitney India, to understand the impact of the deal on India’s aerospace ecosystem.
If the order for 114 Rafale jets goes through, it would make India the largest user of Rafale aircraft with more than 175 planes, Saraf told Goldman Sachs, including the 36 already in service and the 26 Rafale-N jets previously procured. He also pointed out that there is a major opportunity in maintenance and servicing (MRO), especially with 80 Rafale F-4 fighter jets ordered by the UAE.
In total, this creates an MRO market for more than 250 fighter jets, including spares and consumables. This is expected to benefit the domestic aerocomponent companies and could help position India as a regional MRO hub.
Macron to visit India next week
The defense ministry noted the Defense Acquisition Council had given initial approval to buy more Rafale fighter jets and missiles for the air force, anti-tank missiles for the army, and P-8I reconnaissance aircraft for its navy.
The total value of all these proposals stands at ₹3.6 lakh crore, the official statement read. However, it did not elaborate further.
The approvals come ahead of a visit by French President Emmanuel Macron to India next week. The Indian Air Force’s fleet currently includes Rafale fighters from Dassault Aviation, according to reuters.
