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This Week in AsiaEconomics

How India’s US$40 billion order for French Rafales will help local fighter jet makers

Around 80 per cent of the fleet will be assembled in India, with parts being progressively made in the country

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Indian Air Force’s Rafale jets perform a fly past during the country’s 77th Republic Day parade on January 26. Photo: AFP
Biman Mukherji
India’s approval on Thursday of a 3.6 trillion rupee (US$40 billion) purchase of defence equipment – including 114 French-made Rafale fighter jets – will significantly boost the capabilities of the country’s armed forces amid heightened tensions with Pakistan, analysts say.
The move comes as the Indian Air Force’s (IAF) fighter squadron strength has declined to 29, well below the 42 considered essential in the event of simultaneous conflicts with Pakistan and China.
French President Emmanuel Macron’s visit to New Delhi next week is set to further highlight India’s position as one of the largest non-French operators of the Rafale, a twin-engined, multi-role fighter jet widely regarded as one of the deadliest in the world.
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India already operates 36 Rafales – the IAF received its final C variants in December 2024 – and has ordered 26 M naval versions.

“With only 29 fighter squadrons, the IAF faces a daunting task in a highly dynamic and complex geostrategic environment and there is a need to find multiple ways to overcome this shortage,” retired IAF air marshal Ravi Gopal Krishana Kapoor told This Week in Asia.

An Indian Rafale jet performs during Airforce Day celebrations on November 9, 2025. Photo: AP
An Indian Rafale jet performs during Airforce Day celebrations on November 9, 2025. Photo: AP

The new aircraft would be a major boost, Kapoor said, noting the Rafale performed “very well” during Operation Sindoor last May.

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