India and France have intensified negotiations over a Rafale fighter jet deal for the Indian Air Force (IAF) ahead of French President Emmanuel Macron’s visit to India in February.

The IAF submitted a proposal to the Indian Ministry of Defence (MoD) in September seeking approval to procure 114 Rafale fighters at an estimated cost of around 200 billion Indian rupee ($22 billion) under the Multirole Fighter Aircraft requirement.

However, the MoD sought greater clarity on industrial participation, particularly local manufacturing arrangements and the level of indigenous content in the aircraft.

It remains unclear whether a revised proposal has since been submitted. The Economic Times reported that the proposal is likely to gain traction ahead of Macron’s visit.

Once approved by the Defence Acquisition Council, the deal’s price would be negotiated, followed by final clearance from the Cabinet Committee on Security.

The proposed government-to-government acquisition would significantly expand the IAF’s Rafale fleet beyond the 36 aircraft ordered in 2016, which are currently operated by the Ambala- and Hasimara-based squadrons, seen as critical to addressing the service’s declining fighter squadron strength.

The IAF’s fighter inventory has been depleted by recent MiG-21 retirements and delays in the induction of the indigenous Tejas Mark 1A fighter.

Greater Indigenous Content Sought

Citing sources, Times Now reported that the ministry has pushed to raise indigenous content in the aircraft to at least 75 percent, up from the originally proposed 60 percent, in line with India’s “Make in India” defense indigenization objectives.

The MoD is also expected to insist on the establishment of a domestic production line, with the aircraft to be manufactured in India through a partnership between Dassault Aviation and an Indian defense firm.

Last year, Tata Advanced Systems signed an agreement with Dassault Aviation to manufacture Rafale fuselage sections in India.

In addition, plans are underway to establish an engine manufacturing facility as well as a maintenance, repair, and overhaul center for the aircraft in the country.

The MoD has also reportedly sought clarity on liability for potential production delays if the fighters are manufactured in India, an issue that previously stalled discussions between the IAF and Dassault Aviation.