India’s $40 billion Rafale fighter jet order will greatly help local aircraft makers. Around 80% of the fleet will be assembled in India using parts increasingly made in the country. India already has 36 Rafales, with the last C variants delivered in December 2024, and has ordered 26 M naval variants. Retired IAF Air Marshal Ravi Gopal Krishana Kapoor said the Indian Air Force (IAF) needs more jets to overcome its shortage amid a complex security environment. He added the Rafale performed “very well” in Operation Sindoor last May during clashes with Pakistan. Rafales used SCALP missiles, long-range weapons that can hit targets over 250km away. Kapoor explained that new Rafales can integrate easily with existing systems. He noted India’s Hindustan Aeronautics Limited (HAL) cannot meet jet production needs fast enough alone. Of the new Rafales, 18 will be delivered fully built, while the rest will be assembled in India. Over time, up to 60% of parts could be made domestically. The Defence Acquisition Council also approved buying anti-tank missiles and P-8 Poseidon navy aircraft recently. India’s Defence Ministry greenlit a prototype of the Advanced Medium Combat Aircraft (AMCA) in May 2023. Kapoor said learning from Rafale production helps Indian industry prepare for the fifth-generation AMCA jets, improving technology and manufacturing skills. HAL currently holds nearly 180 orders for locally produced Tejas Mk-1A fighters but delivery delays continue due to engine supply issues. India’s private aerospace firms mostly assemble jets now but the Rafale contract could push them to make aircraft components too. Kapoor said, “This will create competition and spur innovation” beyond HAL’s decades-long monopoly. Analyst Srinivaasan Balakrishnan pointed out that Rafale manufacturing could add advanced aerospace jobs to India’s economy, with local parts rising to 80% value in coming years. Tata Advanced Systems in Hyderabad already produces Rafale fuselages and aims for 24 units annually by 2028. The deal also strengthens India-France strategic ties, timed with President Macron’s visit in February 2024. Overall, India’s Rafale order supports local defense manufacturing, addresses IAF’s fighter shortages, and deepens international partnerships.