Dassault Aviation will produce the Rafale fuselage in Hyderabad with Tata, marking a key industrial milestone for the naval contract signed with India.

A strategic turning point in Rafale production

On June 5, 2025, Dassault Aviation formalized an industrial partnership with Tata Advanced Systems Limited (TASL) to produce the fuselages for the Dassault Rafale in India. This announcement, which went unnoticed in some Western circles, nevertheless represents a major development in the industrial architecture of the Rafale program. For the first time since its launch, a critical structural part of this fighter jet will be manufactured outside the French site in Mérignac. The assembly line will be installed in Hyderabad, in the state of Telangana.

This decision is neither insignificant nor purely economic. It is part of a contract worth 638.87 billion rupees, or approximately $7.08 billion, for 26 Rafale-M aircraft for the Indian Navy. The contract was signed following the selection of the Rafale to equip the aircraft carriers INS Vikrant and INS Vikramaditya. It includes an industrial localization clause, with fuselage production being the most sensitive element.

Beyond the naval contract, this initiative strengthens Dassault’s bid for the MRFA tender for 114 combat aircraft. Local production enables the French manufacturer to differentiate itself from Boeing, Lockheed Martin and Saab, at a time when the “Make in India” strategy has become central to New Delhi’s procurement policy.

Manufacturing subcontracted but controlled by Dassault Aviation

Controlled transfer of expertise and production in accordance with French standards

The core of the partnership between Dassault Aviation and Tata Advanced Systems Limited is based on a clear principle: outsourcing production without relinquishing control of the quality chain. The fuselage of the Dassault Rafale, made of lightweight alloys, titanium and composite materials, includes parts that are critical in terms of structural strength, mechanical stress tolerance and avionics interface.

The Hyderabad plant will handle machining, mechanical assembly and preparation for avionics integration of the fuselages, which will then be shipped to France for final assembly. The specifications remain those of Mérignac, with full batch traceability, digital monitoring and double validation inspections by Dassault and TASL. Initial training for the Indian teams will be provided by a team seconded from Bordeaux and Istres.

The project plans for an initial production capacity of eight fuselages per year, which can be increased to 15 depending on the industrial workload. This rate corresponds to an annual delivery of 10 to 12 aircraft, in line with the provisional schedule for the naval contract.

The main difficulty lies not in production, but in maintaining tolerances of less than 0.2 mm on parts measuring more than 5 meters. The Hyderabad assembly line will be equipped with laser-controlled positioning benches and a partially temperature- and humidity-controlled environment, which is essential to guarantee the quality of the composites.

Dassault will also retain control over the production of sensitive sections (radome, AESA radar attachment point, cockpit, engine mount) which will be integrated in France. No weapon systems, sensors or software will be transferred to India.

An industrial strategy directly linked to the MRFA competition

Positioning Dassault as a player in the Indian industrial base

The decision to set up a production line for Dassault Rafale fuselages in India goes beyond the naval sector. It aims to increase the credibility of the French bid for the 114 multi-role aircraft (MRFA) currently out to tender. This competition, which has been going on for more than ten years, should finally be decided in 2026. Direct competitors include Lockheed Martin’s F-21, Saab’s Gripen E, Boeing’s Super Hornet and Dassault’s Rafale F4.

The industrial argument is becoming increasingly important. The Indian government now requires a minimum of 50% local manufacturing on all contracts for more than 50 units. By placing part of the Rafale industrial chain in India today, Dassault is taking a step ahead. To date, no competitor has begun local manufacturing of complete structures.

This move also strengthens political ties. The Dassault-Tata partnership has received explicit support from the Indian Ministry of Defense and the Department of Industrial Promotion. In return, France obtains guarantees of preferential access to the Indian market, particularly in terms of MRO (maintenance, repair, and overhaul) and the supply of spare parts.

The Hyderabad facility could therefore become the regional manufacturing and maintenance center for Rafale aircraft in South Asia. This would give Dassault leverage to respond to potential orders from Sri Lanka, Bangladesh, or the United Arab Emirates if components were common to the Rafale-M version.

A lever for Indian technological development

Towards a gradual increase in local industry expertise

The decision to produce such a strategic component as the fuselage of a fighter jet in India is not only of commercial significance. It is part of India’s desire to build an autonomous aerospace capability that will eventually enable it to design and produce its own fighter jets.

Today, India’s share in the Rafale is limited to machining and assembly. But the ecosystem around Tata Advanced Systems Limited benefits from its proximity to the research centers of DRDO, HAL, and the Indian Institute of Technology. In the medium term, this industrial core could become a supplier of critical parts, including for Indian programs such as the HAL AMCA and Tejas Mk2.

The Indian government also requires that local suppliers be integrated into the value chains. Dassault has committed to selecting 30 to 40 Indian SMEs for the subcontracting of non-critical parts. This includes items such as access hatches, secondary panels, hydraulic lines, and avionics supports.

Finally, this operation enables India to position itself as a potential supplier for future derivatives of the Rafale, notably the Rafale F5, currently under development for 2030. If Indian manufacturing proves reliable, Dassault could transfer part of its export production there, in particular to reduce lead times or circumvent certain customs constraints.

If managed well, the entire process will strengthen both India’s strategic autonomy and Dassault’s industrial competitiveness on a global scale.

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