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India’s Rafale-M and Scorpene Submarine Deals Await Final Approval
India’s maritime defence capabilities are set for a significant boost as two major defence deals with France – i.e., the acquisition of 26 Dassault Rafale-M fighter jets and three additional Naval Group Scorpene-class submarines – now await final clearance from India’s Cabinet Committee on Security (CCS).
India’s Rafale M Deal
The Indian Navy’s pursuit of a capable carrier-based fighter has culminated in the selection of Dassault Aviation’s Rafale-M (Marine) variant.
The deal, estimated to be worth approximately ₹50,000 crore (US$6 billion), includes the procurement of 26 Rafale-M F4 variant aircraft comprising of 22 single-seat and four dual-seat aircraft and an extensive weapons package.
Price negotiations for the Rafale-M deal concluded in early February 2025, with the contract now awaiting clearance from the CCS. The deal is expected to be inked during the upcoming visit of French Defence Minister Sébastien Lecornu to India, scheduled for March or April 2025.
According to the negotiated terms, the first Rafale-M will be delivered within 37 months after the contract signing, with Dassault required to deliver all 26 fighters by 2030 or 2031.
The timeline of negotiations has been extensive. The Indian government’s Defence Acquisition Council (DAC) granted Acceptance of Necessity (AoN) for the Rafale M and follow-on Scorpenes on July 13, 2023.
Price negotiations for the Rafale-M began in mid-2024, with the base price decided to be the same as that of the Indian Air Force’s land-based Rafales. By September 2024, Dassault had submitted its final price offer for the 26 aircraft, which was reportedly significantly lower than previous estimates.
However, unlike the Indian Air Force (IAF) Rafale program, the IN Rafale M deal does not include an offset clause, following an earlier decision in 2020 from the Indian Ministry of Defence (MoD) to eliminate offset clauses across certain procurement scenarios.
This was due to a Comptroller and Auditor general (CAG) report highlighting that the offset policy was not adequately leading to a transfer-of-technology (ToT) to India’s state-owned and private sector defence enterprises.
Follow-On Scorpene Submarines
Running parallel to the Rafale-M acquisition is the deal for three additional Scorpene-class submarines, to be built at Mazagon Dock Shipbuilders Limited (MDL) in Mumbai. This follows the successful completion of six Kalvari-class (Scorpene) diesel-electric attack submarines built by MDL with technology transfer from the French firm Naval Group under Project 75.
The additional submarines will contain approximately 60% in indigenously sourced components, a major leap from preceding six submarines, which contain about 30-40% of indigenous inputs. This reflects India’s broader push toward self-reliance in defence manufacturing. The contract, valued at around ₹33,500 crore (US$3.8 billion), is also awaiting final approval from the CCS.
France’s Growing Defence Industry Presence in India
To support India’s growing Rafale fleet, Dassault Aviation is also advancing its plans to establish a maintenance, repair, and overhaul (MRO) facility in Noida. This MRO facility will also service the IAF’s older Mirage 2000H.
The MRO facility – called Dassault Aviation MRO India (DAMROI) – will be a unit of Dassault Aviation. Interestingly, DAMROI also signifies the opening of India’s defence industry to private sector contractors, including foreign ones, towards supporting the Indian military’s post-procurement needs. It appears that DAMRIO may also be part of Dassault Aviation’s offset commitment via the IAF Rafale contract signed in 2016.
However, with its goal to win the IAF”s Multi-Role Fighter Aircraft (MRFA) bid for 110 aircraft, Dassault Aviation is willing to invest further. Dassault CEO Eric Trappier suggested that discussions for a final assembly site in India could be on the table if the IAF opts for the Rafale F5 for its MRFA requirement.
