India is set to finalize the Rafale-M deal for the Navy’s carrier fleet. The agreement, worth Rs 60,000-70,000 crore, includes 26 Rafale Marine jets. The deal is expected to be signed in April when the French Defence Minister visits India. While the headlines highlight the Navy’s acquisition, the real question remains: Why is this the costliest deal ever, and why is India not receiving any technology transfer?

The High Price of Rafale-M

The deal is in its final approval stage with the Cabinet Committee on Security. The cost per jet, including the weapons package, is estimated between Rs 2,300 crore and Rs 2,600 crore. This makes it the most expensive fighter jet in India’s inventory. While Rafale is a capable platform, its technology is no longer cutting-edge. Its radar system needs upgrades to match current-generation AESA radars. GaN-based AESA radars provide better performance and lighter weight than the GaAs-based radars in Rafale.

No Technology Transfer, No Offsets with Rafale-M

India will not receive any technology transfer under this deal. Additionally, the offset clauses have been relaxed, meaning there will be no reinvestment benefits. This makes the Rafale-M acquisition purely transactional, with no strategic gains. Unlike previous deals where technology-sharing was a priority, this agreement leaves India dependent on France for maintenance and upgrades.

Rafale’s Buddy Refueling Capability: A Limited Gain

Under this agreement, the Navy will receive 22 single-seater and four twin-seater Rafale-M jets. A key feature of the deal is the ability of about 10 Indian Air Force (IAF) Rafales to conduct buddy-buddy refueling. This will extend their operational range. However, the IAF’s Sukhoi fleet already has this capability. The fact that India must approach France for even minor software changes raises concerns about long-term dependency.

Delays in Weapon Integration

The previous Rafale deal for the IAF included the integration of the Spice 2000 bomb. This was the weapon of choice during the Balakot airstrike. However, due to technical complexities and delays, India had to purchase HAMMER missiles instead. This highlights India’s limited ability to modify and upgrade Rafale jets without French involvement.

The Lack of Flexibility in Upgrades

The Navy’s Rafale-M deal offers minimal scope for technology transfer, even for software modifications. By contrast, India’s Su-30MKI jets, built in collaboration with Russia, allow for weapon integration at HAL or within the IAF’s own capabilities. This underscores the strategic limitations of the Rafale-M acquisition.

A Costly Transaction with No Long-Term Gains

The Rafale-M deal is one of the most expensive defense acquisitions in India’s history. However, it offers little in terms of strategic or technological advantages. With no technology transfer and relaxed offset obligations, India is essentially paying a premium for a short-term solution. The lack of flexibility in weapon integration and software upgrades further limits India’s operational autonomy. In the long run, India must rethink its defense procurement strategy to prioritize long-term technological independence over costly imports.

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