A major transformation is underway in the global aerospace sector as up to 60 per cent of the manufacturing value of the Rafale fighter jet may shift to India, following a landmark partnership between France’s Dassault Aviation and India’s TATA Advanced Systems Limited (TASL), reported Economic Times.
This move is anchored by the establishment of a state-of-the-art production facility in Hyderabad, where, for the first time outside France, complete Rafale fuselages—including the central fuselage, rear section, lateral rear shells, and front section—will be manufactured.
The facility is expected to begin delivering up to two complete fuselages per month starting in the financial year 2028, supplying both Indian and international markets.
The collaboration is formalised through four production transfer agreements, reflecting a significant commitment to India’s ‘Make in India’ and Atmanirbhar Bharat (self-reliant India) initiatives.
The Hyderabad plant will not only support the latest Indian Navy order for 26 Rafale-M fighters but is also positioned to serve global demand, marking a decisive step in expanding India’s role in the global aerospace supply chain. In addition to fuselage production, plans are underway for an engine manufacturing unit and a maintenance, repair, and overhaul (MRO) hub, further deepening the local ecosystem.
Already, several Rafale components—such as canopies, radars, fuel tanks, and pylons—are produced in India, but this new phase will see a substantial increase in the indigenous value addition, potentially bringing 60 per cent of the aircraft’s manufacturing value to Indian soil.
The partnership is also expected to boost India’s aerospace manufacturing capabilities, create high-skilled jobs, and enhance the country’s position as a defence exporter, with defence exports having risen by 12 per cent in the last fiscal year to $2.76 billion.
This strategic shift comes at a time when the Indian Air Force is seeking to acquire 114 multi-role fighter aircraft, and Dassault’s expanded local production capabilities are likely to strengthen its bid for this major contract.
The move is widely seen as a testament to the growing trust in Indian manufacturing and the country’s emergence as a key player in global defence supply chains.
