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India clears $40 billion defense package including major Rafale jet order ahead of French president's visit

New Delhi has approved a sweeping 3.6 trillion rupee defense modernization plan, including a reported 114 Dassault Rafale jets, days before French President Emmanuel Macron arrives for high-level talks with Prime Minister Narendra Modi.

India $40 billion defense deal

French President Emmanuel Macron (R) shakes hands with Indian Prime Minister Narendra Modi after a departure ceremony at Marseille Provence airport in Marignane as part of a visit in Marseille, France, February 12, 2025.

India has approved a sweeping 3.6 trillion rupee ($39.7 billion) defense procurement package that includes a major order for Rafale fighter aircraft from France, in a move that underscores deepening strategic ties between New Delhi and Paris ahead of French President Emmanuel Macron’s state visit.

While India’s Defence Ministry did not officially confirm the number of jets to be acquired, domestic media reports indicate that the deal covers 114 Rafale aircraft. Of these, 18 are expected to be delivered directly by French manufacturer Dassault Aviation, with the remaining 96 slated for domestic production in India under technology-transfer and local manufacturing arrangements.


The fighter acquisition forms a central part of a broader modernization push across India’s armed forces. The package also includes the purchase of additional Boeing P-8 Poseidon surveillance aircraft for the navy, anti-tank mines for ground forces, and upgrades to aging Soviet-origin armored platforms such as the T-72 tanks and BMP-2 vehicles.

The new fighter jets are expected to address a significant capability gap within the Indian Air Force, which currently operates 29 squadrons—well below its sanctioned strength of 42 squadrons. A 2024 parliamentary report highlighted mounting concerns over fleet depletion, particularly as older aircraft are phased out. In September 2025, the air force retired two squadrons of legacy MiG-21 fighters, with additional retirements anticipated in the coming years.

India has already expanded its Rafale fleet in recent years. In April 2026, New Delhi approved the acquisition of 26 carrier-capable Dassault Rafale M jets for the navy, making India the first operator of the naval variant outside France.

Rafale aircraft were deployed by India during its 2025 conflict with Pakistan, where at least one jet was reportedly lost in combat against Pakistan’s Chinese-origin Chengdu J-10 fighters.

President Macron is scheduled to visit India from February 17 to 19, during which he will hold talks with Prime Minister Narendra Modi. The two leaders are expected to discuss expanding cooperation in defense, technology, and the Indo-Pacific region. They will also jointly launch the India-France Year of Innovation and attend the AI Impact Summit in New Delhi, signaling a broader push to strengthen bilateral ties beyond defense collaboration.