India Grants $40B Military Upgrade with Rafale Fighters and Boeing P-8I

India has given initial approval for a massive $40 billion boost to its armed forces, with a significant portion earmarked for the acquisition of more advanced fighter jets and reconnaissance aircraft. The defense ministry announcement covers the purchase of 114 French Rafale fighter jets by the Indian Air Force, bolstering an existing order that includes several dozen planes.

The move is part of India’s broader strategy to modernize its military in response to heightened tensions with neighboring countries, particularly Pakistan. These tensions culminated last year when Pakistani forces shot down six Indian aircraft during a conflict centered around civilian sites and missile attacks from both sides.

This comes on the heels of another incident where an Indian air force commander admitted that seven jets had been shot down by Pakistani forces in June 2025. The agreement to increase Rafale fighter jet purchases was secured following President Donald Trump’s mediation efforts, which successfully brokered a ceasefire amidst the conflict’s nuclear threat.

The defense ministry statement did not specify the number of aircraft under the proposed deal but emphasized that “the majority” would be manufactured in India, potentially including work from Dassault Aviation. Media reports indicate that this could encompass up to 90 Rafale jets, with at least some assembly taking place within Indian territory. Despite these purchases, the air force’s fighter squadron strength has shrunk significantly over recent months, now numbering only 29 aircraft instead of the previous 42.

The gradual shift away from Russian military gear in favor of imports from the U.S., France, and Israel continues to impact India’s defense strategy. The Indian Air Force is increasingly turning to domestically manufactured solutions like the Tejas fighter jet, which has been gradually replacing older Soviet-era models such as the MiG-21.

This latest round of acquisitions includes 80 anti-tank missiles for the army and P-8I reconnaissance aircraft for the navy, with a total value estimated at Rs3.6 trillion. The procurement is expected to be finalized in conjunction with President Macron’s planned visit to India. Additionally, the defense ministry has signed an agreement with HAL to purchase eight Dornier 228 aircraft for the coastguard.

This move underscores India’s ambitious plans to modernize its military arsenal and strengthen ties through international partnerships. The ongoing negotiations will focus on refining commercial and technical details of these proposals before full implementation.