SOURCE: RAUNAK KUNDE / NEWS BEAT / IDRW.ORG
In a significant development for India’s aerospace ambitions, French aerospace giant Dassault Aviation is exploring the establishment of a final assembly line (FAL) for its Rafale fighter jet in India, as reported by L’Usine Nouvelle on March 5, 2025. CEO Éric Trappier signaled the move as a strategic response to anticipated large orders from India, stating, “India is preparing major orders, and we could certainly open a final assembly line in that country to be able to absorb this new workload.”
Dassault is already grappling with heightened global demand for the Rafale, a 4.5-generation multirole fighter renowned for its versatility and advanced avionics. The company delivered 36 Rafales to India under a €7.87 billion (approximately $9.4 billion) contract signed in 2016, with all aircraft handed over by 2022.
Now, the Indian Air Force (IAF) is mulling additional purchases to address its shortfall of nearly 200 jets, while the Indian Navy is finalizing a deal for 26 Rafale Marine variants for its aircraft carrier INS Vikrant. These looming orders, combined with export contracts from nations like Egypt, Qatar, and the UAE, are pushing Dassault to scale up production beyond its current capacity of 1-2 jets per month at its Mérignac facility in France.
Trappier’s announcement reflects a pragmatic solution to this crunch. Establishing an FAL in India would not only boost production but also align with New Delhi’s push for domestic manufacturing under “Make in India.” Since the mid-2010s, Dassault has deepened its industrial footprint in India via the Dassault Reliance Aerospace Limited (DRAL) joint venture in Nagpur, which produces Rafale components like fuselage sections and wings. An FAL would elevate this partnership, potentially assembling complete aircraft from kits shipped from France, mirroring models like Lockheed Martin’s F-16 lines in Turkey or South Korea.
The move makes economic and strategic sense. India’s orders—potentially exceeding 100 additional Rafales if the IAF’s Multi-Role Fighter Aircraft (MRFA) tender for 114 jets favors Dassault—represent a multi-billion-dollar pipeline. Local assembly could reduce costs by leveraging India’s lower labor rates (20-30% of European levels) and circumvent supply chain bottlenecks plaguing Europe, such as shortages of titanium or electronic components. For India, it promises jobs, technology transfer, and a stronger indigenous defence ecosystem, critical as the IAF aims for 450 jets by 2040 amid retiring MiG-21s and Jaguars.
Dassault’s existing infrastructure—maintenance hubs in Ambala and a spares network—would support an FAL, ensuring fleet readiness. The company’s experience with India’s complex procurement process, navigated successfully in 2016, positions it favorably against MRFA rivals like Boeing’s F/A-18 or Russia’s Su-35, especially given the IAF’s familiarity with Rafale operations.
Scaling production isn’t without hurdles. Dassault’s Mérignac plant aims to hit three Rafales monthly by 2026, but supply chain woes—exacerbated by post-COVID disruptions and sanctions on Russia—persist. An Indian FAL, estimated to cost $500-700 million to establish, would take 3-5 years to operationalize, requiring skilled labor training and regulatory approvals.
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