NEW DELHI: The proposed acquisition of 114 additional Rafale fighter aircraft is likely to come up for discussion at the Defence Acquisition Council (DAC) meet next week.
The proposal is expected to receive approval ahead of French President Emmanuel Macron’s visit to India this month.
Meanwhile, recent acquisitions in Europe have introduced a new regulatory dimension to the programme.
Dassault Aviation’s Rafale could potentially come under the ambit of the United States’ International Traffic in Arms Regulations (ITAR) following the acquisition of key French aerospace supplier LMB Aerospace by US-based Loar Group.
The development has triggered a massive political debate in France and raised questions about possible downstream implications for existing and future Rafale operators.
The concern stems from the fact that one of France’s principal selling points in exporting the Rafale has been its relative insulation from US export controls, enabling greater operational flexibility to buyers.
ITAR regulations govern the export, transfer and use of defence-related technologies, originating in the United States.
If specific subsystems are to fall under ITAR jurisdiction, then future exports, upgrades or third-party transfers involving those components could potentially require U.S. regulatory approvals.
Sources within the defence and security establishment said the acquisition of LMB by a US firm does not automatically compromise Rafale’s export independence, but caution against dismissing concerns entirely.
“The extent of ITAR applicability will depend on whether US-origin technologies or regulatory controls are introduced into the supply chain post-acquisition. A change in ownership does not alter export status, but the US track record of flexible ITAR interpretation, the strategic value of supply-chain leverage and the legal ambiguity inherent in export controls highlight that the issue cannot be ignored,” a source explained.
New York-based Loar Group completed the acquisition of LMB Fans & Motors in December last year for USD 433 million.
The French government approved the transaction last week despite strong opposition in the French National Assembly, where lawmakers across party lines raised concerns over the transfer of a strategically sensitive aerospace supplier to an American entity.
The former French company specialises in the design and manufacture of high-performance fans and brushless motors used across aerospace and defence platforms.
Its components are integrated into several systems, including Rafale and French nuclear submarines.
While the acquisition does not immediately change the regulatory status of existing platforms, it raises the possibility that certain components could, over time, fall under U.S. export control oversight depending on future technology classification and supply-chain decisions.
The Indian Air Force (IAF) is pushing forward plans for a larger acquisition of 114 jets under a proposal estimated at around Rs 3.25 lakh crore.
The proposal for 88 single-seater and 26 twin-seater variants is likely to include 18 aircraft being delivered in fly-away condition, with the remaining being manufactured in India, incorporating up to 60 per cent indigenous content.
The contract is also expected to include provisions for upgrading Indian Rafales to the future F5 standard once available, while existing aircraft would be upgraded to the F4 configuration.
Separately, India last year also signed a government-to-government agreement worth Rs 63,000 crore for the acquisition of 26 Rafale Marine fighters for the Indian Navy.
Deliveries are expected to begin in 2028, with the aircraft to be deployed aboard the indigenous aircraft carrier INS Vikrant.