Home / National / India Clears Defence Proposals Worth ₹3.60 Lakh Crore, Rafale Fighter Deal Revived

India Clears Defence Proposals Worth ₹3.60 Lakh Crore, Rafale Fighter Deal Revived

Rafale Fighter Deal Revived

India has taken a major step to strengthen its military capabilities after the Defence Acquisition Council (DAC) approved key procurement proposals valued at around ₹3.60 lakh crore. The approvals are part of a wider modernisation drive led by the Ministry of Defence (MoD) to address long-standing equipment shortages across the Army, Navy and Air Force.

Among the most significant proposals is the plan to acquire 114 additional Rafale fighter jets for the Indian Air Force (IAF) under the Multi Role Fighter Aircraft (MRFA) programme. Officials say the decision aims to rebuild the Air Force’s declining squadron strength and enhance combat readiness.

Defence analysts note that the Rafale plan effectively revives the long-stalled Medium Multi Role Combat Aircraft (MMRCA) project first launched in 2007 – 08, which originally sought to procure 126 fighters with a large share to be manufactured in India through licensed production and technology transfer. That programme was shelved in 2016, and replaced by an emergency purchase of 36 Rafale jets to meet urgent operational needs.

While the government has projected the latest move as a fresh boost to air power, critics argue that years of delay led to rising costs and missed opportunities for domestic manufacturing. The original MMRCA project was estimated at around $10-12 billion for 126 aircraft, including technology transfer. The current 114-jet proposal is expected to cost between $30-35 billion, excluding weapons packages, infrastructure and training.

Apart from the fighter jet acquisition, the DAC has cleared several other major projects covering all three services. These include procurement of advanced naval platforms, artillery systems, air defence equipment, drones and surveillance assets. A large portion of the approved projects are expected to be executed under the “Buy Indian” and “Buy Indian – Indigenously Designed, Developed and Manufactured” categories to promote domestic defence production.

Officials said the decisions reflect the government’s intent to reduce import dependence while improving operational capability in view of regional security challenges. The MoD is expected to move ahead with technical and commercial negotiations for the approved projects in the coming months.

Defence experts, however, caution that timely execution will be critical. Past procurement delays have already affected force readiness, especially in the Air Force, where squadron strength has fallen well below sanctioned levels. They stress that faster contracting and indigenous production will be essential to ensure that the latest approvals translate into real capability on the ground.

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