DAC Approves ₹3.60 Lakh Crore Procurement of 114 Rafales

The Defence Ministry of India has approved the purchase of 114 Rafale fighter jets in an enormous contract worth about Rs 3.25-3.60 lakh crore as a significant enhancement of the capabilities of the Indian Air Force. This Defence Acquisition Council (DAC) approval, under the chairmanship of Defence Minister Rajnath Singh is at a time when there is a shortage in squadrons and heightened border tensions.

When was the Deal Approved?

On February 12, 2026, the DAC gave Acceptance of Necessity (AoN) to the 114 Rafale jets in a government-to-government (G2G) contract with France's Dassault Aviation. 

The Defence Acquisition Council, chaired by Raksha Mantri Shri @rajnathsingh, today accorded Acceptance of Necessity (AoN) worth Rs. 3.60 lakh crore, for key capability enhancements across the Defence Forces. For the IAF, approvals include MRFA (Rafale), Combat Missiles and…

— Ministry of Defence, Government of India (@SpokespersonMoD) February 12, 2026

This is after the Defence Procurement Board gave a green light to the negotiations last month. Overall combat preparedness was boosted with the total acquisitions that were approved that day amounting to 3.60 lakh crore.

Rafale Background

India already had a deal of 36 Rafale jets in 2016 at a cost of Rs 59,000 crore which were commissioned to service in 2020. 

The new plan rekindles the dormant MMRCA tender of 126 planes in 2007 where Rafale was the successful proposal but talks broke down due to cost and offsets. These 114 jets are a way of resolving the IAF deficit of 29 squadrons against a stipulated 42 squadrons.

Strategic Significance

The transaction enhances Indo-French defence relationships, ahead of the visit of French president Emmanuel Macron to India. 

It strengthens IAF against the risks of China and Pakistan, with the multi-role air superiority, ground attacks and reconnaissance features of Rafale. 

Local manufacturing participation may boost the aerospace industry of India through offsets.

Rafale Specifications

Rafale is a 4.5-generation twin-engine fighter that has superior avionics, stealth capability and Mach 1.8 (approximately 2,124 km/h) top speed.

The decision to acquire 114 Rafale jets is an indication that India is determined to modernize its air force as the security issues in the region continue to increase. 

Such a historic deal of Rs 3.25-3.60 lakh crore not only refills the stocks of the squadron but also strengthens the strategic alliances with France by supporting the manufacture of defence indigenously through offset. 

Finally, it strengthens the aerial deterrence of India providing strong defence posture in an active geopolitical situation.