India is intensifying negotiations with France to maximize indigenous manufacturing in a massive new order for Rafale fighter jets, aiming to bolster its defense self-reliance amid rising regional tensions. Defense Minister Rajnath Singh raised the demand during the sixth India-France Annual Defence Dialogue in Bengaluru, pushing for 50-60% local content in the 114-jet procurement recently greenlit by India's defense acquisition council. Under the proposed structure, only 18 jets would be delivered fully assembled from France, while the remaining 96 would be produced domestically, incorporating Indian weapons systems and tailored modifications.

This aggressive localization drive marks a shift from earlier Rafale purchases—like the 36-aircraft deal in 2016 and the Navy's 26 jets signed in 2025—which relied heavily on imports. By advocating for in-country engine overhauls and component co-production, Indian officials seek to reduce long-term costs, foster a robust supply chain, and generate high-skill jobs through the "Make in India" framework.

The Rafale's combat-proven capabilities, including precision strikes with Hammer missiles during last year's India-Pakistan border clashes, make it a cornerstone of India's air power upgrade. Local production could integrate homegrown avionics and sensors, enhancing interoperability with indigenous platforms like the Tejas fighter.

Beyond the jets, the dialogue yielded a renewed 10-year defense roadmap, a joint missile production agreement, and expanded military officer exchanges. Prime Minister Narendra Modi and French President Emmanuel Macron also inaugurated an H-125 helicopter assembly line in Karnataka, signaling broader industrial collaboration in drones, AI, and cybersecurity.

With the deal potentially valued at over $40 billion, France has strong incentives to accommodate India's terms as tenders and pricing talks advance. Analysts see this as a blueprint for India to emerge as a regional defense manufacturing hub, supplying not just its forces but potentially export markets too. Negotiations continue, with expectations of a formal framework agreement soon. This partnership could reshape Indo-French strategic alignment for years to come.