Defense Business and Industry

Dassault's 60% Indigenous Content for Rafale Falls Short for India

Recent discussions about Dassault Aviation’s 60% indigenous content (IC) offer for the Rafale fighter jets under India’s MRFA program indicate that this level is insufficient for India’s long-term defense objectives. Analysts argue that a minimum of 80% IC is essential to ensure operational sovereignty, long-term cost efficiency, and robust technology transfer crucial for developing India’s aerospace ecosystem. Furthermore, Dassault’s track record of incomplete offset obligations raises concerns about their commitment to indigenization. To align with national security needs and the Make in India initiative, India should prioritize negotiating for higher IC and ensuring stringent compliance with previous commitments before proceeding.

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