Dassault contracts JVs with Tatas for Rafale fuselage and Ambanis for Falcon jet to be made in India

On June 5, 2025, Dassault Aviation and Tata Advanced Systems Limited signed four Production Transfer Agreements to manufacture the Rafale fighter aircraft fuselage in India.

Under the scope of the partnership, Tata Advanced Systems will set up a cutting-edge production facility at Hyderabad for manufacturing key structural sections of the Rafale, including the lateral shells of the rear fuselage, the complete rear section, the central fuselage, and the front section. Expected to roll off the assembly line in 2028, the facility is expected to deliver up to two fuselages per month.

During an official visit to France in April 2015, Prime Minister Narendra Modi announced that India would acquire 36 fully built Rafales citing "critical operational necessity". In July 2015, then Defence Minister Manohar Parrikar informed the Rajya Sabha that a tender for 126 aircraft had been withdrawn and negotiations for 36 aircraft had begun. In January 2016, India and France signed a memorandum of understanding (MoU) for acquisition of 36 aircraft without finalising the financial terms of the acquisition. In May 2016, the two sides arrived at a figure of €7.87 billion (₹58,891 crore) for the agreement, compared to €11.8 billion quoted in April 2015 and €8.6 billion quoted in January 2016. 

This development comes two weeks after Indian Defence Minister Rajnath Singh’s push towards enhancing India’s indigenous defence capabilities and fostering a robust domestic aerospace industrial ecosystem, by approving the setting up of the Aeronautical Development Agency (ADA) for executing the programme of the Advanced Medium Combat Aircraft (AMCA) through Industry partnership.

The timing of this announcement is also welcome as it comes after years of persistent criticism of the India-France government to government deal to purchase the Rafale by India’s opposition and three weeks after it was used by the Indian Air Force in Operation Sindoor with lethal effect against many of Pakistan’s terrorist hideouts and military airfields.

Chief Executive Officer and Managing Director, Tata Advanced SystemsLimited, Sukaran Singh said, “This partnership marks a significant step in India’s aerospace journey. The production of the complete Rafale fuselage in India underscores the deepening trust in Tata Advanced Systems’ capabilities and the strength of our collaboration with Dassault Aviation. It also reflects the remarkable progress India has made in establishing a modern, robust aerospace manufacturing ecosystem that can support global platforms.”

Chairman and CEO of Dassault Aviation, Eric Trappier was quoted saying "For the first time, Rafale fuselages will be produced outside France. This is a decisive step in strengthening our supply chain in India. Thanks to the expansion of our local partners, including TASL, one of the major players in the Indian aerospace industry, this supply chain will contribute to the successful ramp-up of the Rafale and, with our support, will meet our quality and competitiveness requirements." 

On 31 January 2012, the Defence Ministry had announced that Dassault Rafale had won the Medium Multi-Role Combat Aircraft,  competition to supply the Indian Air Force with 126 aircraft, along with an option for 63 additional aircraft. The first 18 aircraft were to be supplied by Dassault Aviation fully built and the remaining 108 aircraft were to be manufactured under license by Hindustan Aeronautics Limited (HAL) with a transfer of technology from Dassault. Rafale was chosen as the lowest bidder based on life-cycle cost, which is a  combination of cost of acquisition, operating cost over a duration of 40 years and cost of transfer of technology. The negotiations with Dassault dragged on due to disagreements on warranty for aircraft produced by HAL. India wanted Dassault to ensure the quality of aircraft produced by HAL, but Dassault refused to do so. In January 2014, it was reported that the cost of the deal had escalated to $30 billion (₹1,86,000 crore), with each aircraft costing $120 million (₹746 crore). In February 2014, defence minister A. K. Antony said that the procedure of calculation of life-cycle cost was being re-examined and the contract could not be signed in the fiscal year 2013-14 due to budgetary constraints. In March 2014, HAL and Dassault signed a work share agreement to manage licensed manufacture.^[12] After the Indian general election in April–May 2014, the National Democratic Alliance led by BJP took control of the government from the United Progressive Alliance led by the Indian National Congress.

As disagreements over cost and warranty for aircraft produced by HAL continued, then Defence Minister Manohar Parrikar said that the Sukhoi Su-30MKI could be acquired as an alternative to Rafale. Then Air Chief Marshal Arup Raha disagreed, saying that the Su-30MKI and Rafale had different capabilities, they were not interchangeable. In February 2015, it was reported that the Rafale purchase was headed for cancellation as it had been misjudged to be the lowest bidder due to deficiencies in Dassault's bid. On 25 March 2015, Dassault's CEO Éric Trappier said that although the deal was taking time, it was "95 percent completed".

This facility has the potential to be a major investment in India’s aerospace infrastructure and is expected to serve as a critical hub for high-precision manufacturing.

Barely two weeks after Dassault announced its JV with Tata Advanced Systems, another big push for the aerospace manufacturing ecosystem in India came again from Dassault Aviation which will manufacture its best-selling business executive jet—the Falcon 2000—at Nagpur in partnership with the Anil Ambani-led Reliance Group company Reliance Aerostructure Ltd (RAL). The two companies announced a strategic partnership for this purpose at the Paris Air Show on 18 June 2025 declaring that the first made-in-India Falcon 2000 jet should be ready by 2028.

Dassault has had a long-standing relationship with India, most notably through its fighter jets Mirage 2000 and Rafale that are part of the Indian Air Force’s fleet of fighters.

In a joint release the two partners said, “Dassault Aviation will manufacture Falcon 2000 jets outside of France for the first time in its storied history. This pioneering initiative will see India emerge as a strategic centre for high-end business jet manufacturing. It marks a historic moment for Indian aerospace and manufacturing industry, as the landmark agreement paves way for India’s entry into the elite club of countries producing next-generation business jets, alongside the United States, France, Canada, and Brazil,” adding that the made-in-India jets will cater to rising business jet demand in India and international markets.

These two JVs mark a very significant addition to the Make in India aim strengthening the country’s aerospace manufacturing capabilities and supporting global supply chains and enhancing its economic self-reliance.

The author a strategic affairs analyst and former spokesperson, Defence Ministry and Indian Army, can be contacted at wordsword02@gmail.com, https://www.linkedin.com/in/anil-bhat-70b94766/ and @ColAnilBhat8252