New Delhi: French aircraft major Dassault Aviation has proposed a partnership with the Tata Group to establish the final assembly line (FAL) for the Rafale fighter aircraft in India, ThePrint has learnt. This will be the first time the company sets up a Rafale assembly line outside France.
Sources in the defence and security establishment say, the French government’s technical and commercial submission in connection with India’s planned acquisition of 114 Rafale fighters also lays out a detailed industrial partnership roadmap involving the four principal French/European companies associated with the programme.
Under the proposal, missile manufacturer MBDA is expected to partner with Larsen & Toubro (L&T), electronics and avionics major Thales with the Mahindra Group and engine maker Safran with state-run Hindustan Aeronautics Limited (HAL).
The partnership with HAL will include work related to both the Rafale and India’s Advanced Medium Combat Aircraft (AMCA) programme.
The proposed partnerships form part of France’s response to India’s Letter of Request (LoR), submitted under the government-to-government procurement process. The Indian side received the French proposal on 29 July and is currently studying its contents.
Sources said most of India’s key requirements have been addressed, although the proposal is still being examined in detail.
“The major requirements have been met. The proposal is under evaluation,” a source said adding that if no major clarification is needed, the process will shift to cost and contract negotiations.
The aim, officials added, is to conclude negotiations and sign the contract for the 114 fighters before the end of the current financial year.
If the deal goes through, the Indian Air Force will have ordered 150 Rafales—36 already in service and another 114 under the new contract. Together with the 26 Rafale M fighters contracted for the Indian Navy, India’s total Rafale fleet on order will rise to 176 aircraft.
The sources said the costs proposed by France fall within the DAC cleared proposal worth Rs 3.25 lakh crore.
Indigenisation roadmap
As first reported by ThePrint in June this year, the IAF has sought a minimum of 40 percent indigenous content for the Rafale F4* fighters to be manufactured in India, with the local component increasing to 60 percent in the final production batch.
The French proposal includes a detailed roadmap to achieve these targets through manufacturing partnerships, technology transfer and local sourcing.
Sources added Dassault has also proposed establishing a Maintenance, Repair and Overhaul (MRO) facility in India, which, over the aircraft’s lifecycle, could increase the effective domestic value addition to nearly 80 percent.
ThePrint had first reported in April 2025 that the government had decided to pursue the acquisition of 114 Rafales under a government-to-government arrangement. In the second half of 2025, the IAF formally initiated the proposal, following which discussions were held between New Delhi and Paris.
(Edited by Viny Mishra)