India–France relations already appear to be at a historic high and have crossed a new watershed, with French President Emmanuel Macron’s official visit to Mumbai and Delhi in February 2026 marking a deeper strategic alignment with an expanded global scope.
This broader ambition was reflected in Prime Minister (PM) Narendra Modi’s remarks during the Mumbai press briefing, where he noted that “India–France ties have no boundaries and can reach from the deep oceans to the tallest mountains.” Although the crux of the visit focused on advancing much-needed people-to-people exchanges and strengthening joint scientific as well as cultural collaboration — marked by the official launch of the “India–France Year of Innovation” in Mumbai — the underlying emphasis once again appears to rest on defence cooperation, which has historically formed the core of the bilateral relationship. It is therefore not insignificant that President Macron’s delegation included the French Minister of the Armed Forces, Catherine Vautrin, who co-chaired the 6th India–France Annual Defence Dialogue with Rajnath Singh. On 17 February, PM Modi and President Macron virtually inaugurated the H125 helicopter final assembly line in Bengaluru, established by Airbus in partnership with Tata Advanced Systems Limited (TASL). This development underscores the enduring defence cooperation between the two countries, rooted in a shared understanding of strategic autonomy. At the heart of this defence partnership lies a long-standing operational trust. The Indian Air Force has historically relied on French platforms, most notably Dassault aircraft, dating back to the early years of India’s independence, thereby embedding defence cooperation within India’s broader strategic calculus.
From Historical Toofani to Modern Rafale Legacy
In recent years, particularly after Operation Sindoor, the Rafale has acquired heightened public visibility in India, and one could thus be forgiven for thinking that it marks an important shift in the India–France defence partnership. However, each decade since India’s independence has witnessed a new phase of India–France defence cooperation in the aerial domain. The first India–France defence deal was signed in 1953 for the delivery of 113 Dassault Ouragan aircraft, soon nicknamed “Toofani”. These aircraft saw combat during the liberation of Goa in 1961 and were deployed for reconnaissance missions during the 1962 India–China war. A few years later, during the 1965 India–Pakistan war, the Indian Air Force (IAF) fielded the successor to the Toofani, the Mystère IV, which also saw action in the 1971 war. In the late 1970s, the IAF acquired the Franco-British SEPECAT Jaguar, with nearly 180 aircraft delivered over more than two decades, the majority built under licence in India by HAL. Following various rounds of modernisation, they remain in service with the IAF, with their strike capabilities employed in major combat operations ranging from the IPKF in Sri Lanka to the Kargil War and Operation Sindoor. In the 1980s, India again procured aircraft from Dassault, placing an order for more than fifty Mirage‑2000 fighters, which were successfully deployed during the 1999 Kargil War, where their precision-guided munitions (PGMs) proved decisive, and more recently during the 2019 Balakot airstrike. The enduring trust and reliability the IAF places in the Jaguar and the Mirage‑2000 are evident in their continued operational use; both aircraft are believed to be nuclear-capable, forming the air component of India’s nuclear triad. Their likely retirement over the next decade would see this role pass to the Rafale and the fifth-generation Advanced Medium Combat Aircraft (AMCA). From this historical vantage point, it is worth examining the possible future of India–France fighter aircraft cooperation, taking cues from what was deliberately omitted in the recent Modi–Macron joint communiqué and reading between the lines. We first consider the implications for the Rafale before turning to France’s potentially even more consequential stake in the AMCA project.
Rafale MRFA: Strategic Autonomy Meets Make in India
Barely a few days before President Macron’s visit, the Defence Acquisition Council (DAC) approved an Acceptance of Necessity (AoN) for the procurement of 114 Multi-Role Fighter Aircraft (MRFA), i.e., Rafale jets. The sequence of events evokes déjà vu, recalling the now-defunct MMRCA 2007 deal for 126 aircraft, which Dassault had won but was later scrapped in 2015 in favour of a direct purchase of 36 Rafale fighters, finalised in 2016. However, facing an ageing and steadily shrinking fleet, with only around 30 operational aircraft compared with the sanctioned 42—the lowest since the 1960s—the Indian Air Force had to raise the alarm within the corridors of South Block. The MMRCA programme was subsequently repackaged in 2018 as the MRFA, with procurement reduced to 114 aircraft. Under the current project, 18 aircraft are to be delivered in fly-away condition from France, while the remaining 90-plus will be produced in India, with an increasing transfer of technology (ToT) targeting more than 50 percent indigenous content, thereby addressing both the political goals of Aatmanirbhar Bharat and the 2026 Defence Acquisition Procedure (DAP), which emphasises shifting from ‘Make in India’ to ‘Owned by India.’ The next steps are now crucial and decisive. With the Request for Proposal (RfP) expected soon from New Delhi, intense contractual and financial negotiations are set to begin, aiming for Cabinet Committee on Security (CCS) approval before year-end and finalisation through an Intergovernmental Agreement (IGA). For a deal that would become the largest-ever for the Indian Air Force and Dassault—valued at an estimated US$ 35 billion—both parties are keen to secure maximum concessions. The most critical aspects of these negotiations concern technology transfer (ToT), access to source code, and, perhaps most importantly, agreement between Dassault and the Ministry of Defence on a suitable Indian production agency (IPA) to manufacture the aircraft domestically. These lingering issues mirror the challenges of the earlier MMRCA negotiations, which ultimately undermined that deal. More than a decade later, some lessons have been learned. Dassault could potentially persuade the Ministry of Defence (MoD) to select its preferred Indian Partner Agency (IPA), as a precedent exists in the C295 transport aircraft agreement, where Airbus was allowed to partner with TASL to manufacture the aircraft in Gujarat. Dassault could pursue a similar arrangement with TASL to act as the Indian Aircraft Contractor, particularly as the two companies have already agreed to establish a Rafale fuselage plant in Hyderabad, scheduled to become operational in 2028. This option may appear more attractive than entering a potentially uncertain partnership with a Defence Public Sector Undertaking (DPSU) such as HAL. Once this consortium is selected and operational, scaling up production between Dassault and its Indian partner will be relatively straightforward. Dassault is already establishing a Maintenance, Repair, and Overhaul (MRO) facility for Rafale and Mirage‑2000 aircraft in Noida. In addition, the company operates an aircraft production line in Nagpur, currently manufacturing Falcon aircraft, which was previously set up with Reliance under its offset commitments. This will foster genuine co-development synergies, with suppliers such as Safran—already operating anMRO facility in Hyderabad for the M-88 engine—Thales, and MBDA likely to collaborate alongside Indian counterparts, including Bharat Electronics Limited (BEL), Mahindra, Dynamatics, and Bharat Forge. Such co-development will enable the 114 Rafale aircraft to meet the new F4* standard, with later upgrades planned to the F5 standard. This will allow deep integration of indigenous systems and components, such as radar and weapons, on the aircraft—a recurring and crucial demand from the MoD and the Indian Air Force. This unique and integrated Indo-French defence ecosystem will be ideally positioned to support Dassault’s Rafale exports, particularly to regional partners such as Indonesia and the UAE, thereby advancing the ‘Make in India, for the world’ motto. With the first of the initial 114 deliveries expected before the end of the decade, the Indian Air Force’s Rafale inventory would rise to 176 aircraft, up from the existing 36, alongside the 26 Rafale-Marine operated by the Indian Navy. This would help streamline and harmonise the IAF’s fleet with a versatile and battle-tested platform, widely valued by IAF officers, as demonstrated during Operation Sindoor. Its strike capabilities—enabled by SCALP and Meteor missiles—and the SPECTRA electronic warfare suite were recently highlighted by Vice Air Chief Marshal Naresh Kapoor. As the Tejas fleet expands slowly amid ongoing delays and setbacks, the Rafale MRFA is set to become the backbone of IAF fighter squadrons throughout the 2030s, filling a crucial capability gap until the fifth-generation AMCA enters service, likely not before 2040.
Historic Breakthrough in AMCA Engine Co-Development
In retrospect, a little-noticed engine deal between DRDO and Safran signed last November may prove critical and historic in India’s pursuit of an indigenous fighter aircraft. Under the agreement, Safran and the Gas Turbine Research Establishment (GTRE), DRDO’s engine laboratory, will co-develop the 120–140 kN thrust engine for the AMCA. Testing is scheduled to begin in 2028, with production expected by the middle of the next decade, equipping the fifth-generation AMCA Mk2, which is slated to enter operational service well into the 2040s. Unprecedentedly, India will, for the first time, receive a 100 percent transfer of technology for critical engine components, including the highly sensitive crystal turbine blades and hot-section parts. Once approved by the Cabinet Committee on Security (CCS), the deal will grant India intellectual property rights (IPR) for the technology, while manufacturing will be carried out domestically. This positions New Delhi among the select few countries capable of producing state-of-the-art jet engines—a capability currently limited to just five nations, coincidentally the UNSC P5 members. GTRE already has experience in this domain, making it a suitable partner, with its background in developing the now-defunct Kaveri engine. With full IPR and local production, GTRE will be able to adapt and recalibrate the project to meet evolving requirements. Viewed more broadly, this far-reaching agreement could prove a game-changer and serve as a model for co-development in the defence sector. The indigenisation drive extends beyond a fighter engine: the Safran–GTRE engine could ultimately power unmanned combat aerial vehicles (UCAVs) and naval fifth-generation fighters. It is thus a momentous and watershed deal, linking the defence ecosystems of both countries for the long term, with the potential for the first time for a joint combat aircraft to be designed and built by both countries and used by their respective Air Forces. The year 2026 is set to be defining for the India–France defence partnership, with both the Rafale and AMCA projects likely advancing significantly. If these deals are concluded, they could herald a new era of bilateral defence cooperation, marked by co-production, co-development, and co-ownership shared between equal partners.
- About the author: Guillaume Gandelin is a Visiting Fellow with the Strategic Studies Programme, Observer Research Foundation.
- Source: This article was published by the Observer Research Foundation.
