India has moved a step closer to finalising its massive deal with France for 114 Rafale fighter jets, as the government has prepared the Letter of Request (LoR) for the acquisition of the 4.5-generation multirole aircraft for the Indian Air Force (IAF).

According to defence sources, the LoR is expected to be sent to France within the next few weeks. The document formally initiates major government-to-government defence negotiations. The estimated value of the proposed agreement is around ₹3.25 lakh crore.

Under the plan, nearly 90 of the 114 Rafale jets are expected to be manufactured in India through a partnership between Dassault Aviation and an Indian company as part of the Make-in-India initiative. The remaining 24 aircraft are likely to be delivered directly from France in fly-away condition. The project is expected to have nearly 50% indigenous content.

IAF chief Air Chief Marshal A P Singh is scheduled to visit France in early June ahead of Prime Minister Narendra Modi’s visit for the G7 Summit from June 15 to 17. His trip is expected to provide momentum to the negotiations. The final contract is likely to be signed by the end of the year after price negotiations and approval from the Cabinet Committee on Security (CCS).

Separately, the Indian Navy is procuring 26 Rafale Marine aircraft from Dassault for carrier operations. India already operates 36 Rafale jets acquired under the 2016 intergovernmental agreement with France.

The 114-aircraft procurement falls under the IAF’s Multi-Role Fighter Aircraft (MRFA) programme, aimed at addressing the force’s shrinking fighter squadron strength, which has fallen to 29 squadrons against the sanctioned requirement of 42.5 to effectively handle simultaneous threats from Pakistan and China.

As Pakistan moves ahead with plans to acquire 40 J-35 fifth-generation fighter jets, India is also pushing Hindustan Aeronautics Ltd (HAL) to speed up deliveries of Tejas aircraft under existing contracts. Defence Secretary Rajesh Kumar Singh recently expressed confidence that HAL would deliver 10 Tejas Mk-1A fighters within the current financial year.

With the indigenous Advanced Medium Combat Aircraft (AMCA) programme expected to enter service only around 2035, India’s immediate requirement for a stealth fighter platform has also renewed attention on Russia’s Su-57 fighter jet.

For the AMCA programme, the government has shortlisted three domestic private-sector contenders for prototype development and manufacturing: Tata Advanced Systems Limited (TASL), a consortium led by Larsen & Toubro (L&T), and another consortium led by Bharat Forge.