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India backs $40b military upgrade with more Rafale fighters, Boeing P-8Is

A Rafale multi-role combat aircraft from Dassault Aviation of France takes off at Yelahanka Airforce Station in Bangalore. PHOTO: AFP

India on Thursday gave initial clearance for a $40 billion boost to the country’s armed forces, including procurement of more Rafale fighter jets for the air force and Boeing P-8I reconnaissance aircraft for the navy.

A defence ministry source told AFP that the decision covers the purchase of 114 French Rafale fighter jets, adding to a few dozen already ordered for the Indian Air Force.

A defence ministry statement that did not specify the number of jets under the proposed deal said that “the majority” of them would be manufactured in India.

Media reports in India, citing unnamed government sources, suggested Dassault Aviation could manufacture at least 90 jets in the country under the deal.

Heightened tensions with its neighbours, including Pakistan, have pushed India’s military to modernise.

Read More: How indigenous technology helped PAF down Rafale

Last year in May, the Pakistani military brought down six Indian aircraft, including three Rafale jets, one MiG-29, one Su-30, and an Israeli-made Harop drone, in retaliation following Indian missile attacks.

In June 2025, an Indian defence official admitted that the country’s air force “lost some aircraft” on the night of May 7, after launching strikes on civilian sites in Pakistan during the four-day conflict. 

United States President Donald Trump said he successfully brokered a ceasefire between India and Pakistan, citing the threat of nuclear escalation as the primary motivator. He added that seven jets were shot down during the conflict. Trump subsequently upped that count to eight and, earlier this week, to 10 jets.

The ceasefire, reached on May 10, halted the worst military confrontation between the two nuclear-armed nations in decades. The conflict, which saw both sides using fighter jets, drones, missiles, and artillery, led to around 70 casualties.

Ageing fleet

The air force’s fighter squadron strength has shrunk to 29 in recent months, well below the 42 it had earlier. Its workhorse MiG-21 was retired in September and other early variants of the MiG-29, the Anglo-French Jaguar and the French Mirage 2000 are also set to end service in the coming years.

Gradually turning away from Russian military gear, India has increased imports from the United States, France and Israel.

New Delhi has long relied on importing machinery and weapons for its armed forces, but a recent push by Prime Minister Narendra Modi has helped boost domestic manufacturing.

A Rafale fighter jet model is displayed during the International Bali Airshow in Kuta, Bali, Indonesia, in September 2024. Photo: Reuters

A Rafale fighter jet model is displayed during the International Bali Airshow in Kuta, Bali, Indonesia, in September 2024. Photo: Reuters

For the Indian Air Force, this era began in the 1980s but bore fruit only in the last decade when the locally produced Tejas fighter jet was introduced to replace Soviet-era MiG-21s. Hindustan Aeronautics (HAL) has nearly 180 of the advanced Mk-1A variants of the Tejas on order domestically, but has yet to begin deliveries due to engine supply chain issues at GE Aerospace.

The defence ministry said the Defence Acquisition Council had given the initial nod for more Rafale fighter jets and missiles for the air force, anti-tank missiles for the army and P-8I reconnaissance aircraft for the navy.

The total value of all these proposals stands at Rs3.6tr, the statement said. 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.

In April, India signed a deal for 26 Rafale-Marine twin- and single-seat jets to be deployed on its two aircraft carriers: INS Vikrant and INS Vikramaditya.

Separately, the defence ministry also signed a deal with HAL to buy eight Dornier 228 aircraft for the coastguard.

The proposals pave the way for commercial and technical details to be finalised soon.

Earlier in the day, local media reported that the Defence Acquisition Council had approved the purchase of 114 Rafale fighter jets from Dassault for Rs3.6tr rupees.

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