In a first, Rafale fuselage to be made in India under Tata-Dassault tie-up

"The agreements between Dassault and TASL also come amid a growing focus on boosting private sector participation in the production of indigenous combat aircraft."

Rafale, Aircraft
Stating that Rafale fuselages would, for the first time, be produced outside France under this agreement, Dassault Aviation Chairman and Chief Executive Officer (CEO) Eric Trappier said, “This is a decisive step in strengthening our supply chain in I
Bhaswar Kumar Delhi
4 min read Last Updated : Jun 06 2025 | 12:03 AM IST
In a first, the fuselage of the Rafale combat aircraft will be manufactured in India — for both domestic and global markets — after France’s Dassault Aviation and Indian private sector defence major Tata Advanced Systems Limited (TASL) announced on Thursday the signing of four Production Transfer Agreements for the manufacture of key structural sections of the Rafale at a production facility TASL will set up in Hyderabad, Telangana.
 
Describing the agreements as a significant step forward in strengthening India’s aerospace manufacturing capabilities and supporting global supply chains, an official release by the two companies said, “Under the scope of the partnership, TASL will set up a cutting-edge production facility in Hyderabad for the manufacture of key structural sections of the Rafale, including the lateral shells of the rear fuselage, the complete rear section, the central fuselage, and the front section.”
 
The companies stated that the first fuselage sections are expected to roll off the Hyderabad assembly line in FY28, adding that the facility is expected to deliver up to two complete fuselages per month. 
 
Stating that Rafale fuselages would, for the first time, be produced outside France under this agreement, Dassault Aviation Chairman and Chief Executive Officer (CEO) Eric Trappier said, “This is a decisive step in strengthening our supply chain in India.”
 
Highlighting the expansion of Dassault’s local partners, including TASL, Trappier added, “This supply chain will contribute to the successful ramp-up of the Rafale and, with our support, will meet our quality and competitiveness requirements.”
 
Terming the production of the complete Rafale fuselage in India a strong sign of deepening trust in TASL’s capabilities and the strength of its collaboration with Dassault, TASL CEO and Managing Director Sukaran Singh added, “It also reflects the remarkable progress India has made in establishing a modern, robust aerospace manufacturing ecosystem that can support global platforms.”
 
In April, in the country’s largest-ever fighter jet acquisition, India signed an inter-governmental agreement (IGA) worth around Rs 64,000 crore with France to procure 26 Rafale-Marine combat aircraft to bolster the Indian Navy’s firepower. The agreement includes transfer of technology for integrating indigenous weapons onto the Rafale-Marine jets in India. It also provides for setting up a production facility for their fuselage, along with maintenance, repair, and overhaul facilities for aircraft engines, sensors, and weapons in India.
 
The Indian Air Force (IAF) had earlier acquired 36 Rafale jets under a Rs 60,000 crore IGA with France signed in September 2016.
 
One industry insider, who did not wish to be named, underscored that this marked the continuation of a decade-long and accelerating trend of Indian private companies being integrated into the supply chains of global defence majors. “Indian private companies already manufacture aerostructures for the latest variant of the Boeing F-15 and wings for the Lockheed Martin F-16. They also produce various components, including the rear fuselage and wings, of the indigenous Tejas combat aircraft family. But this latest development marks a more comprehensive integration into the supply chain of a cutting-edge foreign fighter,” said the source, adding, “It will reinforce India’s position as a trusted player in the global aerospace supply chain amid geopolitical turbulence and could open doors to larger contracts—both in complexity and value—from global firms.”
 
Another industry insider agreed that it could bolster the fortunes of Indian defence and aerospace companies. “You can build on this success, just as TASL did after setting up India’s first private sector military aircraft assembly line. Other European countries have expressed interest in partnering with India’s defence manufacturing ecosystem to secure their supply chains, and they will see this as another strong signal that India can be trusted for such a role,” said the second source.
 
India’s first private-sector military aircraft manufacturing facility was inaugurated in Vadodara, Gujarat, in October. The final assembly line, set up by TASL in collaboration with Airbus Spain, is producing the C295 tactical transport aircraft for the IAF. The first 16 are being delivered in fly-away condition by Airbus, while the remaining 40 are being manufactured and assembled by TASL under an industrial partnership.
 
The agreements between Dassault and TASL also come amid a growing focus on boosting private sector participation in the production of indigenous combat aircraft, with the recently approved execution model for developing the prototype of the fifth-generation Advanced Medium Combat Aircraft (Amca) offering equal opportunity to domestic public and private defence firms to compete in building the stealth jet — a move that could end Hindustan Aeronautics Limited’s (HAL’s) monopoly in fighter jet production.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Rafale Rafale deal Tata groupDassault Aviation

First Published: Jun 05 2025 | 6:59 PM IST

Next Story