“Make in India” Initiative with Local Production
Despite the political changes in France, the Emmanuel Macron government and Dassault Aviation have committed to manufacturing Rafale fighters in India under the “Make in India” initiative. This includes using locally sourced components to meet the IAF’s demand. Additionally, engine maker Safran SA is planning an MRO facility for Rafale engines in Hyderabad, expected to be operational by 2025. Safran has also indicated readiness to manufacture M-88 engines in India if there is a substantial order from the IAF.
Strategic Needs and Benefits for India
With HAL‘s LCA Mark II, which will replace the Mirage 2000, not expected to be ready until the middle of the next decade, Rafale fighters will address India’s immediate needs and potentially allow for exports. Dassault has started sourcing titanium parts from Indian companies and plans to expand its local supply chain. This manufacturing move is seen as a win-win for both nations, given Dassault’s backlog of approximately 300 fighter orders from countries like Croatia, Greece, Serbia, Egypt, Qatar, UAE, and Indonesia.
Government’s New Procurement Policy
The Indian government has shifted its defense procurement policy to acquire 114 Multi-Role Fighter Aircraft (MRFA) only from vendors willing to establish manufacturing units in India, including technology transfer and full production in collaboration with local partners. This policy shift, while expected to delay the MRFA acquisition, is aimed at strengthening India’s defense manufacturing capabilities.
Global Competition for Indian Defense Contracts
The MRFA deal, valued at approximately $20 billion, is one of the world’s largest defense contracts. Competitors include Dassault’s Rafale, Boeing’s Super Hornet F/A-18, SAAB’s Gripen, Lockheed Martin’s F-21, Russian MiG-35, and the Eurofighter Typhoon.
Existing Infrastructure and Future Plans
India’s Air Force currently operates 36 Rafale fighters equipped with Hammer and SCALP missiles, and the Navy is negotiating the price for 26 Maritime Strike Rafales for the INS Vikrant aircraft carrier. India already has maintenance depots, repair facilities, and training simulators for Rafales at the Ambala air base.The Modi government values France’s stable licensing policy, which reassures long-term commitments similar to Russia’s historical aircraft supplies to India since 1953. Safran is also prepared to enter a joint venture with an Indian company to manufacture engines for Indian Multi-Role Helicopters (IMRH), reducing dependency on third countries.With increasing aggression from China, equipped with its fifth-generation J-20 fighters and expanding force levels, India needs to bolster its Air Force. “India can ill afford to further delay the acquisition of advanced multi-role fighters as the Chinese challenge will increase by the day,” said a national security planner in the HT report.
Boost from GE Aerospace Collaboration
The Indian government has been encouraged by its success in getting US company GE Aerospace Defence and Systems to produce fighter jet engines in India in collaboration with state-owned Hindustan Aeronautics Ltd (HAL). According to a deal signed during Prime Minister Narendra Modi’s recent visit to the US, GE will transfer 80% of the technology for its F414 jet engines, which will power the Mk2 version of India’s indigenously developed Light Combat Aircraft (LCA).
Increased FDI in Defense Sector
To further boost its defense manufacturing capabilities, the Indian government has increased the Foreign Direct Investment (FDI) sectoral limit in defense to 74%. This move aims to attract more foreign investments and make India a hub for defense manufacturing.
India’s strategic decision to bolster its defense capabilities through local manufacturing of Rafale fighters aligns with its “Make in India” initiative. This move not only meets the IAF’s long-term needs but also positions India as a potential exporter of advanced fighters, enhancing its strategic and economic standing globally.
