India’s Big Defense Leap: Rafale F5 Jets Could Be Manufactured Locally
- Europe India International Affairs
Shreya Naskar
- March 8, 2025
- 0
- 78
- 5 minutes read

Dassault Aviation’s CEO, Eric Trappier, has revealed that France is considering establishing a final assembly line for Rafale fighter jets in India. This development comes as India is preparing to place significant orders for the Rafale F5 variant, a highly advanced version of the combat aircraft. The move is expected to enhance India’s defence manufacturing capabilities while addressing the global demand for Rafale jets. The upcoming Rafale F5 standard will introduce several improvements over its predecessor, the Rafale F4. Key enhancements include:
- More powerful engines for superior performance.
- Enhanced survivability with advanced countermeasures.
- Improved data links for better battlefield coordination.
- Integration with Unmanned Combat Aerial Vehicles (UCAVs) for expanded combat capabilities.
- Nuclear-armed hypersonic missile capability, making it one of the most formidable fighter jets in the world.
Growing Global Demand for Rafale Jets
Several countries have shown strong interest in Rafale fighter jets, with multiple deals already signed:
- Indonesia has completed an order for 42 Rafale jets amid regional tensions.
- Egypt signed a $4.5 billion deal for Rafale jets, but deliveries remain incomplete.
- Qatar has also faced delays in the full delivery of its Rafale jets.
- UAE has received its first batch of Rafale jets as its F-35 deal with the US remains uncertain.
- Peru has confirmed its purchase of 24 fighter jets, with Rafale F4, Saab Gripen, and F-16V Block 70 in contention.
As of December 2023, Dassault Aviation had a backlog of 220 Rafale aircraft, with 164 units for export and 56 for France, marking an increase from previous figures.
Why India? Strategic and Economic Benefits
India is expected to procure additional Rafale-M carrier-based fighters for the Indian Navy and follow-up orders for the Indian Air Force (IAF). The proposed final assembly line in India offers several advantages:
- Cost Efficiency: India has significantly lower labour costs compared to Europe, reducing overall production expenses. Long-term savings on maintenance and upgrades due to localized production.
- Supply Chain Optimization: An assembly line in India could help overcome European supply chain bottlenecks, ensuring faster and more efficient production.
- Strengthening the Indian Defense Sector: The move aligns with India’s Make in India initiative, promoting indigenous defence manufacturing. Increased job creation and technology transfer will boost India’s aerospace capabilities.
India’s Rafale-Marine Deal: Key Negotiations
India is currently negotiating the purchase of 26 Rafale-Marine jets for the Indian Navy, a deal initially valued at ₹60,000 crore ($7.2 billion). However, after extensive discussions, the price has been brought down to ₹29,000 crore ($3.5 billion). This deal is expected to significantly enhance the IAF’s combat readiness and naval aviation capabilities. The potential establishment of a Rafale F5 production line in India would be a game-changer for both India’s defence sector and Dassault Aviation. While it would lower production costs and enhance supply chain efficiency, it would also strengthen India’s self-reliance in defence manufacturing. With growing global demand and India’s increasing defence needs, this collaboration could mark a new era in Indo-French military cooperation.