Dassault Aviation to Set Up Major Rafale Fighter Jet Manufacturing Hub in Nagpur, Marking Biggest Foreign OEM Defence Programme in India

In a major boost to India’s aerospace and defence manufacturing ambitions, French aerospace giant Dassault Aviation is preparing to set up a large-scale production facility in Nagpur, Maharashtra.

The upcoming assembly line is expected to roll out as many as 24 Rafale fighter aircraft annually, making it the company’s second-largest manufacturing centre worldwide after its flagship facility in Merignac, France.

The project is being described as the largest-ever fighter aircraft manufacturing programme by a foreign Original Equipment Manufacturer (OEM) to be undertaken in India.

The Nagpur plant is expected to anchor a broad domestic industrial ecosystem, bringing dozens of Indian aerospace firms into Dassault’s global Rafale supply chain.

A Strategic Shift from Assembly to Full-Scale Production
According to industry sources, the Nagpur facility is being planned as a fully integrated production hub rather than a limited final-assembly operation.

The plant will have capabilities across the full manufacturing lifecycle, including systems integration, flight testing and final aircraft delivery.

The expansion is a key element of Dassault’s plan to address rising global demand for the Rafale platform and to support India’s potential acquisition of 114 Multi-Role Fighter Aircraft (MRFA).

At present, Dassault operates a single production line in France. The addition of the Indian facility is expected to nearly double its output, while creating a geographically diversified and resilient manufacturing base.

The move highlights Dassault Aviation’s long-term strategic commitment to India as a critical hub for its flagship combat aircraft programme.

Integrating Indian Industry into the Global Supply Chain
The production model represents a clear departure from earlier defence contracts that were largely centred on offset-driven sourcing.

Instead, the focus is on building a durable industrial partnership that embeds Indian suppliers directly into Dassault’s global manufacturing network.

Leading Indian groups such as Tata, Mahindra, Dynamatic Technologies and Larsen & Toubro (L&T), along with several specialised Tier-2 and Tier-3 firms, are expected to play central roles.

The supply ecosystem will span key domains including aerostructures, avionics, composite materials, precision machining and landing gear assemblies.

Tata Advanced Systems: As a principal partner, Tata has already been selected to produce critical sections of the Rafale fuselage. This marks the first time such core aerostructures will be manufactured outside France, underscoring confidence in Indian manufacturing standards.
Dynamatic Technologies: With strong expertise in precision engineering, Dynamatic has emerged as a key supplier for complex metallic components.

Mahindra Aerospace: The group is expected to contribute through advanced sub-assemblies and high-precision machining work.
In addition, a wide network of Micro, Small and Medium Enterprises (MSMEs) is being integrated to supply composites, brackets, actuators and systems integration support.

Boosting India’s Defence Capabilities and Economy
If implemented as envisioned, the Nagpur facility could significantly reshape India’s fighter aircraft manufacturing landscape. It would mark the first instance of a foreign OEM operating a production line in India with output levels comparable to top global programmes.

The initiative is projected to create thousands of highly skilled jobs and catalyse substantial investment in aerospace tooling, automation and advanced manufacturing processes.

Moreover, the expertise developed within a stringent “zero-defect” production environment is expected to spill over into indigenous platforms such as the Tejas Mk2 and the Advanced Medium Combat Aircraft (AMCA).

For Dassault Aviation, the Nagpur hub offers a scalable and cost-efficient manufacturing base with direct access to India’s rapidly evolving aerospace supply chain, reinforcing the Rafale’s position in the competitive global fighter jet market.