India’s negotiations with France for the purchase of 114 Dassault Rafale fighter jets for the Indian Air Force (IAF) are expected to significantly strengthen the country’s indigenous aerospace industry, according to a report published Thursday.

The proposed deal goes beyond procurement, with India seeking licensed production of key systems and greater domestic manufacturing participation. The move aligns with New Delhi’s push for indigenization and self-reliance in defense production.

A report in Vietnam Times noted that Indian firms are expected to undertake the majority of component manufacturing and assembly work within the country. Dassault Aviation is also reportedly willing to establish a Maintenance, Repair and Overhaul (MRO) facility in India. Such a facility would not only support the new Rafale fleet but could potentially service other international operators as well.

Local production is expected to enhance India’s aerospace capabilities, strengthen domestic supply chains, and potentially generate export opportunities over time. The IAF, which aims to maintain 42 fighter squadrons, currently operates at a significantly lower level—estimated at around 30 squadrons. The induction of indigenously built Rafales is seen as a key step toward restoring operational strength.

However, the report also cautioned about potential risks, including challenges in maintaining production tolerances at scale and possible cost escalations.

Ultimately, analysts suggest the Rafale deal represents more than a defense purchase. It is viewed as a strategic stopgap to ensure squadron strength while advancing India’s long-term goal of achieving greater strategic autonomy in aerospace and defense capabilities.