Dassault plans Rafale assembly line expansion in India to meet rising demand
Dassault Aviation, the French aerospace giant, is strategically eyeing the Indian market by considering the establishment of a Rafale assembly line in India. This move aims to cater to the growing demand for Rafale fighter aircraft from both the Indian Navy and the Indian Air Force.
Sources closely associated with this development suggest that India could potentially become the first country to produce a 4.5-generation fighter aircraft without being the Original Equipment Manufacturer (OEM). This underscores India’s increasing prominence in the global defence manufacturing landscape.
Backlog and expanding production capacity
Dassault currently has a backlog of nearly 200 Rafale fighter aircraft, including outstanding deliveries for various countries. These orders encompass 80 aircraft for the United Arab Emirates (UAE), 42 for Indonesia, 12 for Croatia, 54 for Egypt, 24 for Greece, and 36 for Qatar. Notably, there is potential for an additional 26 aircraft for the Indian Navy. To meet the growing demand and overcome its current production capacity limitation of 24 aircraft per year, Dassault is considering establishing an additional production line. This line would be located at its joint venture, DRAL (Dassault Reliance Aerospace Limited), in India.
India’s defence market presents a significant opportunity, with the Indian Air Force planning to purchase 114 fighter aircraft. The Request for Proposal (RFP) for this acquisition is expected to be issued in the coming six months, making it one of the largest fighter aircraft orders worldwide. Additionally, the Indian Navy is finalizing an order for 26 Rafale aircraft, with deliveries set to commence in 2027. This decision will further boost the demand for Rafale aircraft in India.
Rafale manufacturing line expansion in India
Sources have disclosed that the Rafale manufacturing line at DRAL in MIHAN SEZ Nagpur will witness a substantial expansion. This expansion will encompass an additional half a million square feet of infrastructure spread across four hangars, with production slated to begin in 2028.
The planned annual production capacity at this facility is 24 aircraft per year, equivalent to two aircraft per month. At an estimated price of Rs 1,000 crore per aircraft in 2028, this translates to Rs 24,000 crore in annual sales. The expansion will necessitate an additional investment of approximately Rs 3,000 crore.
Beyond its strategic implications, the expansion of the Rafale assembly line in India will significantly contribute to employment generation. DRAL is expected to employ more than 600 personnel to support the final assembly line for the Falcon 2000 aircraft. With the addition of the Rafale production, the workforce at DRAL could exceed the 1,200 mark, bolstering the Indian aerospace industry and creating substantial job opportunities.
