India invests $288 million per unit for Rafale M, surpassing its stealth competitors

On April 28, 2025, India reached a significant $7.5 billion agreement with France to purchase 26 Rafale Marine (Rafale M) fighter jets for its navy, representing the largest defense contract between the two countries to date.

The contract, signed in New Delhi, aims to enhance India’s maritime air capabilities by equipping its aircraft carriers, INS Vikrant and INS Vikramaditya, with advanced multirole fighters to address increasing regional threats, particularly from China’s growing naval presence in the Indian Ocean.

However, the deal’s substantial cost—approximately $288 million per aircraft—has raised questions about the cost-effectiveness of investing in a fourth-generation platform when fifth-generation options like the U.S.-made F-35C are available at similar or lower prices.

The Rafale M, a naval variant of the Rafale fighter developed by Dassault Aviation in France, is specifically designed for carrier operations. The agreement includes 22 single-seat jets tailored for deployment on India’s aircraft carriers and four twin-seat trainer variants intended for land-based use. Additionally, the package covers weapons, simulators, crew training, and a five-year performance-based logistics support program, along with technology transfers to aid India’s pursuit of defense self-reliance. Deliveries are anticipated to commence in mid-2028, with the complete order expected to be fulfilled by 2030, as stated by India’s Ministry of Defense.

This deal follows a 2016 contract for 36 Rafale jets for the Indian Air Force, which cost nearly $8 billion, highlighting India’s increasing dependence on French military equipment. India’s choice to acquire the Rafale M is driven by the pressing need to upgrade its naval aviation capabilities. The Indian Navy currently operates a fleet of 40 Russian-made MiG-29K jets, which were inducted between 2009 and 2014 at a cost of $2 billion.

The aircraft stationed on INS Vikrant and INS Vikramaditya have faced significant challenges, including low serviceability, technical difficulties, and supply chain issues worsened by the ongoing conflict in Ukraine. Retired Admiral Arun Prakash, former Chief of Naval Staff, noted in an NDTV interview, ‘Currently, we have the MiG-29K, which is nearly 15 years old, and the country of origin is at war, making it difficult to provide operational support.’

The Rafale M, chosen over the U.S.-made F/A-18 Super Hornet after thorough trials in 2022, offers logistical compatibility with the Indian Air Force’s Rafale fleet, facilitating maintenance and spare parts management. This advanced 4.5-generation multirole fighter excels in air superiority, precision strikes, anti-ship operations, and reconnaissance missions. Equipped with two Safran M88-2 engines, each producing 16,860 pounds of thrust, the Rafale M can reach a maximum speed of Mach 1.8 and has a combat range exceeding 1,850 kilometers with external fuel tanks.

Its reinforced landing gear, folding wings, and tailhook allow it to operate from Short Take-Off But Arrested Recovery (STOBAR) carriers like INS Vikrant, which necessitates modifications for the Rafale’s larger wingspan. The aircraft features an active electronically scanned array (AESA) radar for improved detection and tracking, while the Spectra electronic warfare system offers strong protection against missile threats. The Rafale M is armed with advanced munitions, including the Meteor air-to-air missile with a range of 120-150 kilometers, the Exocet AM39 anti-ship missile, and the SCALP cruise missile for precise ground attacks.

Additionally, India has ensured the integration of domestic weapons, such as the Astra Mk1 air-to-air missile and Rudram anti-radiation missile, in line with its ‘Make in India’ initiative. However, the deal’s cost is under intense scrutiny, with the Rafale M priced at $288 million per aircraft, making it one of the most expensive fighter jets ever sold, exceeding the price of many fifth-generation models.

The U.S. Navy’s F-35C, a stealthy carrier-based fighter, has a base price ranging from $120 to $150 million, with fully equipped models potentially costing between $200 and $250 million. In comparison, the Boeing F/A-18 Super Hornet, which competes directly with the Rafale M in India’s selection process, is priced at approximately $70 to $100 million per unit. Meanwhile, Russia’s Su-35, a land-based 4.5-generation fighter, is estimated to cost around $85 million.

The Rafale M’s high price tag, estimated between $100 and $120 million per unit, encompasses not just the aircraft but also a comprehensive package that includes armaments, spare parts, training, and infrastructure. Furthermore, India’s agreement includes technology transfers, such as the establishment of a Rafale fuselage production facility and maintenance, repair, and overhaul centers for engines, sensors, and weapons, which contribute to the overall cost.

India’s strategic considerations are influenced by regional security dynamics, particularly the increasing naval assertiveness of China. China currently operates three aircraft carriers—Liaoning, Shandong, and the advanced Fujian—and has plans for further expansion. Its carrier-based J-15 fighters, while lacking stealth capabilities, number nearly 60, alongside fourth-generation J-11 jets. Additionally, China’s military base in Djibouti and logistical facilities in Pakistan enhance its operational reach in the Indian Ocean, prompting India to bolster its maritime deterrence.

Admiral Prakash remarked to NDTV that the absence of a Chinese task force in Indian waters is due to their lack of air cover, cautioning that the deployment of carriers with integrated air wings could soon pose a challenge to India’s regional supremacy.

The Rafale M, equipped with long-range weapons and advanced avionics, is regarded as a vital asset for projecting power and securing essential sea lanes in the Indo-Pacific. France’s involvement in the deal transcends mere commerce, indicating a broader geopolitical alignment, and builds upon decades of defense collaboration, from India’s acquisition of Mirage 2000 jets in the 1980s to Scorpene-class submarines.

French President Emmanuel Macron’s initiative for European defense independence has established the Rafale as a strategic alternative to U.S.-led platforms such as the F-35, attracting countries cautious about excessive dependence on American or Chinese technology. Dassault Aviation, with limited domestic orders, depends on lucrative export contracts to maintain production levels. In 2024, the company secured agreements with Indonesia for 18 Rafales and Serbia for 12, while the United Arab Emirates finalized a $19 billion contract for 80 aircraft in 2021.

The Indian agreement, signed by Dassault CEO Eric Trappier and Indian Joint Secretary Dinesh Kumar, includes offset provisions mandating that 50% of the contract value—around $3.75 billion—be reinvested in India, enhancing local defense manufacturing. The Rafale program has historically been integral to France’s defense strategy. Launched in 2001, the Rafale was intended to replace aging French aircraft such as the F-8 Crusader and Mirage 2000. The naval variant, Rafale M, first deployed on the Charles de Gaulle carrier, has participated in operations in Afghanistan, Libya, and Syria, demonstrating its adaptability in high-stakes missions.

India’s acquisition of the Rafale commenced with the contentious 2016 agreement for 36 air force jets, which faced corruption allegations but was validated by India’s Supreme Court in 2019. The navy’s choice of the Rafale M in July 2023, after trials at INS Hansa in Goa, represented the first export order for the naval variant, a significant achievement for Dassault. The company aims to increase production to three aircraft per month by 2025, rising to four by 2028, to satisfy the escalating global demand.

Although the Rafale M’s technological features are noteworthy, they do not meet fifth-generation criteria. In contrast to the F-35C, which offers stealth, sensor fusion, and network-centric warfare capabilities, the Rafale M utilizes advanced avionics and electronic warfare systems to offset its absence of low-observable characteristics.

The open software architecture facilitates upgrades, including enhanced radar warning receivers and low-band jammers requested by India; however, the airframe, dating back to the 1990s, restricts its flexibility compared to more modern designs.

Meanwhile, China’s FC-31, a stealth fighter currently in development for potential carrier operations, remains untested but could pose a challenge to the Rafale M’s significance in the region by the 2030s. India’s Twin-Engine Deck-Based Fighter (TEDBF), a 4.5-generation initiative, is still at least ten years away from becoming operational, positioning the Rafale M as a temporary solution.

The financial implications of the deal have led to comparisons with other investment options. For $7.5 billion, India could have opted for a larger fleet of F/A-18 Super Hornets or expedited the development of domestic platforms like the TEDBF or the fifth-generation Advanced Medium Combat Aircraft (AMCA) for the Air Force. Choosing the Rafale M reflects a compromise between immediate operational requirements and long-term strategic objectives.

By 2030, India is set to operate 62 Rafales—36 for the Air Force and 26 for the Navy—improving interoperability through shared logistics and “buddy-buddy” aerial refueling systems. The incorporation of indigenous weapons and local production aligns with Prime Minister Narendra Modi’s “Aatmanirbhar Bharat” initiative, which could generate thousands of jobs and foster collaborations with Indian companies such as Reliance Group, which established a joint venture with Dassault in 2016.

This deal illustrates the intricacies of the global arms market. While the U.S. maintains its leading F-35 program as the standard for advanced fighters, France’s ability to secure lucrative contracts emphasizes the attractiveness of non-American options for countries pursuing strategic independence.

The price of the Rafale M, though high, encompasses not just the aircraft itself but also a thorough support package that guarantees operational readiness. This deal has broader implications, indicating France’s increasing influence in the Indo-Pacific region and posing a challenge to U.S. supremacy in the high-end defense sector.

As India enhances its naval capabilities, it raises the question of whether the Rafale M’s expense is warranted by its strategic significance or if it merely reflects a premium for geopolitical alignment. In a time characterized by drones, artificial intelligence, and the advent of sixth-generation fighters, is India making a sound investment in a future-proof asset or merely a costly step towards its next-generation goals?