India and France signed a Rs 63,000 crore deal for 26 Rafale Marine jets for the Indian Navy, boosting defence stocks. The agreement includes training, weapons, technology transfer, and setting up MRO facilities in India, strengthening ‘Aatmanirbhar Bharat’ and enhancing India’s maritime air power by 2030.
The Governments of India and France have signed an Inter-Governmental Agreement (IGA) for the procurement of 26 Rafale Marine aircraft for the Indian Navy. The agreement was signed on April 28, 2025, by India’s Raksha Mantri Shri Rajnath Singh and France’s Minister of Armed Forces Mr. Sebastien Lecornu at Nausena Bhawan, New Delhi.
The procurement includes 22 single-seater and four twin-seater Rafale Marine fighter jets, along with training, simulators, associated equipment, weapons, and performance-based logistics. Additionally, the deal covers equipment upgrades for the existing Rafale fleet operated by the Indian Air Force (IAF).
In line with the ‘Aatmanirbhar Bharat’ (Self-Reliant India) initiative, the agreement encompasses the transfer of technology for integrating indigenous weapons, the establishment of a production facility for Rafale fuselages, and maintenance, repair, and overhaul (MRO) units for engines, sensors, and weaponry in India. This is expected to generate thousands of jobs and drive revenue growth for numerous MSMEs involved in the setup and operation of these facilities.
The Rafale-Marine, manufactured by Dassault Aviation, is a carrier-borne, combat-ready aircraft with proven capabilities in maritime environments. Delivery of the jets is scheduled between 37 to 65 months, ensuring the Indian Navy will have the full fleet operational by 2030-31. Crew training will be conducted both in France and India to ensure smooth induction.
Notably, Rafale-Marine shares considerable commonality with the Rafales currently operated by the IAF, which will streamline training, logistics, and joint operations between the services. The new additions are expected to serve aboard the INS Vikrant and INS Vikramaditya, significantly enhancing India’s air power at sea and its ability to secure the Indian Ocean region.
Following the announcement, Indian defence stocks rallied sharply. The Nifty Defence index rose by 4.5%, its largest intra-day gain since mid-April. Seventeen of the eighteen constituents traded positively, with Paras Defence leading the surge with a 9.27% rise. Other major gainers included Garden Reach Shipbuilders (+8.11%), Hindustan Aeronautics Limited (HAL) (+5.5%), Mazagon Dock Shipbuilders (+4.77%), and Cochin Shipyard (+6.1%). Bharat Electronics Limited (BEL) also saw a 3.28% increase.
This landmark deal is expected to not only enhance India’s maritime defence but also catalyze growth across the domestic defence manufacturing ecosystem, setting a new benchmark for Indo-French strategic cooperation.
