Context

• India and France formally concluded an Inter-Governmental Agreement (IGA), valued at nearly ?64,000 crore, to procure 26 Rafale-M fighter jets for the Indian Navy. 
  • G2G is a mode of defence procurement involving direct negotiation between the government of the importer country with that of the exporter country.

Major Highlights of the Agreement

• Deliveries are set to begin from mid-2028 and likely to be completed by 2030.
• It includes 26 Rafale-M aircraft, it  also covers training of crew members in both France and India. 
  • The package includes extra equipment for the existing Rafale fleet of the Indian Air Force.
• Transfer of Technology: The ToT provisions for the integration of indigenous weapons such as the Astra Beyond Visual Range (BVR) air-to-air missile on the Rafale aircraft. 
  • It also includes the establishment of a production facility for the Rafale fuselage in India, as well as Maintenance, Repair, and Overhaul (MRO) facilities for aircraft engines, sensors, and weapons. 
• Significance: This initiative is expected to generate thousands of jobs and create significant revenue for numerous Micro, Small, and Medium Enterprises (MSMEs) in India.

Modernising Indian Navy’s Requirements

• The Indian Navy currently operates two aircraft carriers: INS Vikramaditya, which was acquired from Russia, and INS Vikrant, which was indigenously developed and commissioned in 2022.
  • These carriers currently operate the MiG-29K fighter jets, 45 of which were procured from Russia. 
• Due to their low availability rates and the approaching end of their service life, the Navy sought to acquire a new fleet of carrier-based fighter jets. 
  • Although the original plan was to acquire 54 jets, the number was reduced to 26 following the DRDO’s proposal to develop the indigenous Twin Engine Deck-Based Fighter (TEDBF).
• The Indian armed forces will also receive 31 MQ-9B armed High Altitude Long Endurance (HALE) Remotely Piloted Aircraft Systems (RPAS) under a deal with the U.S.
  • Of the 31 RPAS, also known as Sea Guardians, 15 are meant for the Navy and eight each for the Army and IAF. 
  • Deliveries are scheduled between January 2029 and September 2030.

Source: TH