
A Rafale Fighter Jet.
India’s Defence Acquisition Council Clears $43 Billion Deal for Rafale Fighters, P-8I Maritime Aircraft: New Delhi: In a major push to bolster India’s air and maritime combat capabilities, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, on February 12, 2026, approved capital acquisition proposals worth approximately ₹3.60 lakh crore (₹360,000 crore) — roughly $43 billion USD at current exchange rates.
The high-value clearances include the procurement of 114 Multi Role Fighter Aircraft (MRFA) — officially acknowledged as Rafale jets — for the Indian Air Force (IAF), and additional P-8I Long Range Maritime Reconnaissance Aircraft for the Indian Navy.
AoN Signals Major Modernisation Push
The Acceptance of Necessity (AoN) granted by the DAC under the Ministry of Defence marks a critical step toward strengthening India’s deterrence posture amid evolving security challenges in the Indo-Pacific and along its contested borders with China and Pakistan.
Rafale MRFA to Boost IAF’s Air Dominance
For the Indian Air Force, the DAC cleared the long-awaited MRFA programme, widely associated with the acquisition of additional Rafale jets from Dassault Aviation.
The move is aimed at significantly enhancing the IAF’s ability to conduct air dominance missions across the full spectrum of conflict, from conventional engagements to high-intensity warfare scenarios.
READ: Self-Reliant India in Defence: MoD Signs $278 Million Deal with HAL for Eight Dornier 228 Aircraft

P8I Aircraft.
Long-Range Strike and Advanced Capabilities
The MRFA procurement is expected to strengthen India’s long-range offensive strike capability and provide a decisive operational edge. Equipped with advanced avionics, precision-guided munitions, and beyond-visual-range missile systems, Rafale fighters will play a pivotal role in ensuring air superiority and deep strike capability as India simultaneously pursues its own fighter jet development programmes such AMCA – Advanced Medium Combat Aircraft, a stealth 5th generation fighter aircraft and locally developed and produced advanced variants of Lightweight Combat Aircraft Tejas.
Importantly, the majority of the MRFA aircraft are slated to be manufactured in India, aligning with the government’s Atmanirbhar Bharat (self-reliance) initiative in defence production.
READ: Airbus Projects Asia-Pacific Aviation Services Market to Hit US$138.7 Billion by 2044

India DRDO’s Gandiv Missile.
Indigenous Manufacturing and Technology Transfer
Local manufacturing and technology transfer are expected to significantly boost India’s aerospace ecosystem, generate high-skilled employment, and reduce long-term dependence on foreign suppliers.
Alongside the MRFA programme, the DAC also cleared combat missiles to enhance stand-off ground attack capability with high precision and deep strike power. Additionally, approval for Air-Ship Based High Altitude Pseudo Satellite (AS-HAPS) systems will enable persistent Intelligence, Surveillance and Reconnaissance (ISR), electronic intelligence gathering, and secure military communications.
READ: India Allocates Record $85.67 Billion for Defence in FY 2026-27

Indian Navy’s P-8I Maritime Patrol Aircraft.
P-8I Aircraft to Strengthen Maritime Surveillance
For the Indian Navy, the DAC approved the acquisition of additional P-8I Long Range Maritime Reconnaissance Aircraft — a critical component of India’s anti-submarine warfare (ASW) and maritime domain awareness architecture.
The P-8I aircraft, based on the American Boeing P-8 platform and customised for Indian requirements by Boeing, has already proven instrumental in tracking submarine movements across the Indian Ocean Region (IOR).
Countering Expanding Submarine Presence
The new procurement will significantly enhance the Navy’s long-range maritime surveillance, maritime strike, and anti-submarine warfare capabilities.
With increasing Chinese naval deployments and expanding submarine activity in the Indian Ocean, the P-8I fleet plays a vital role in safeguarding Sea Lines of Communication (SLOCs) and monitoring strategic chokepoints.
Equipped with advanced radar systems, sonobuoys, electronic intelligence suites, and anti-ship and anti-submarine weapons, the aircraft is regarded as one of the most potent maritime patrol platforms in the region.
The Navy also received AoN for a 4 MW Marine Gas Turbine-based Electric Power Generator under the Make-I category of the Defence Acquisition Procedure (DAP) 2020, a step aimed at reducing dependency on foreign manufacturers and strengthening indigenous naval power generation capability.

Indian Army’s T-72 MBT.
Army and Coast Guard Upgrades
The Indian Army received AoN for Anti-Tank Mines (Vibhav) to enhance defensive capabilities against mechanised forces. It also cleared overhaul programmes for Armoured Recovery Vehicles (ARVs), T-72 tanks, and BMP-II Infantry Combat Vehicles to extend service life and ensure sustained operational readiness.
Meanwhile, the Indian Coast Guard will procure advanced Electro-Optical/Infra-Red systems for its Dornier aircraft, strengthening maritime surveillance and coastal security operations.
Securing Continental and Maritime Frontiers
Indian military planners’ focus on Rafale MRFA fighters for air dominance and P-8I aircraft for maritime surveillance underscores India’s strategic focus on securing both continental borders and maritime frontiers.
By combining high-end combat platforms with indigenisation under the Make-in-India framework, India aims to build credible deterrence while strengthening its domestic defence industrial base.
READ: Indian Navy Signs Contract for Three Bottom Opening Non-Propelled Barges