Dassault Aviation and Tata Advanced Systems join hands to manufacture Rafale jet fuselages in Hyderabad
French aerospace giant Dassault Aviation and India’s Tata Advanced Systems Limited (TASL) revealed a strategic partnership to manufacture Rafale fighter jet fuselages in India. The production will take place at a new facility being set up in Hyderabad, Telangana.
This development holds deep significance for India’s defence industry, as it marks the first time Rafale fuselages will be produced outside France. The move is not only symbolic but also a practical step in furthering India’s goals under the Make in India and Atmanirbhar Bharat (self-reliant India) initiatives.
Why This Deal Matters
The fuselage is the central body of an aircraft where critical systems like the cockpit, fuel storage, and weapon systems are integrated. Manufacturing such a key part of a fighter jet requires precision engineering, strict quality control, and advanced manufacturing infrastructure. Dassault’s decision to shift this responsibility to Tata shows a high level of trust in Indian industrial capabilities.
The project is expected to begin production by the financial year 2028, and once operational, the Hyderabad facility is projected to deliver two fuselages per month. These fuselages will not only be used for Indian orders but also exported to other countries, positioning India as a critical player in the global aerospace supply chain.
A Boost for Indian Defence and Manufacturing
1. Strengthening Indigenous Capabilities
This partnership is a direct push toward India’s ambition to build its own defence manufacturing base. Until now, India has been one of the largest importers of military hardware. With this deal, critical parts of high-end aircraft like the Rafale will be produced domestically, reducing dependency on foreign sources.
2. Creating Jobs and Skills
The Hyderabad facility is expected to create thousands of jobs, especially for engineers, technicians, and support staff. In addition, the project will upskill the local workforce, enabling them to work with global standards in aerospace manufacturing. This will have long-term benefits for the Indian economy by developing human capital and expertise in high-technology fields.
3. Technology Transfer
Dassault will provide technical know-how and training to Tata’s Indian workforce. This technology transfer is a crucial part of the deal, as it lays the foundation for India to potentially build and maintain other aircraft types in the future. Learning to manufacture complex components like fuselages opens doors to more advanced defence manufacturing tasks.
4. Export Potential
Once the facility is operational, India will be in a position to export fuselage assemblies to other countries that purchase Rafale jets. This contributes to India’s increasing role in global defence exports. In the financial year 2024–25, India’s defence exports reached a record of US$2.76 billion, and this number is expected to grow as more international orders are fulfilled from Indian soil.
Recent Rafale Orders and Future Demand
India already operates 36 Rafale jets delivered by Dassault Aviation. In April 2025, the Indian government signed a deal worth approximately US$7.4 billion to purchase 26 Rafale-M (naval variant) fighter jets for the Indian Navy. These jets are expected to be fully delivered by the year 2030. Dassault is ramping up production, planning to deliver 25 Rafale aircraft in 2025, compared to 21 in 2024.
The Indian Air Force is also evaluating the possibility of additional orders to expand its Rafale fleet, further strengthening India’s airpower in the region. These growing orders underline the long-term relevance of the new Tata–Dassault production facility.
Broader Industrial and Economic Impact
1. Emergence of Hyderabad as an Aerospace Hub
Hyderabad is steadily becoming one of India’s top aerospace and defence hubs. With this new Rafale fuselage plant, the region will attract more investment, suppliers, and technology-based companies. This follows earlier efforts to make Hyderabad a centre for defence electronics, drones, and aerospace engineering.
2. Empowering the Private Sector
Tata Advanced Systems is one of India’s leading private defence manufacturers. It already works on projects involving armoured vehicles, UAVs (unmanned aerial vehicles), and other systems. By taking on the responsibility of manufacturing Rafale fuselages, Tata is setting a precedent for more private sector involvement in a field traditionally dominated by public sector undertakings.
3. Building Supply Chains
This project will require a robust ecosystem of suppliers and service providers. From metal fabrication and composite materials to precision tools, logistics, and quality control services, many small and medium enterprises (SMEs) will benefit from this project. It could lead to the creation of a comprehensive aerospace supply chain in India.
Strategic and Defence Implications
1. Self-Reliance in a Volatile Region
India’s geographical location demands a strong and independent defence setup. Tensions with neighbouring countries like China and Pakistan continue to rise. Indigenous production of critical defence components allows India to respond quickly to strategic needs without waiting for foreign suppliers.
Rafale jets have already proven useful in recent defence operations, including border monitoring and quick strike capability. Having the capacity to produce and maintain key components domestically will improve both readiness and long-term sustainability.
2. Strengthening Naval Aviation
The recent order for naval Rafale jets is part of a broader effort to strengthen India’s maritime capabilities. With the increasing presence of Chinese vessels in the Indian Ocean, India is boosting its aircraft carrier and naval fighter capabilities. Indigenous production will support faster maintenance and upgrades for these aircraft.
3. Complementing Indian Fighter Projects
India is also working on several indigenous aircraft programs like the HAL Tejas Mk2 and the Advanced Medium Combat Aircraft (AMCA). These projects are part of India’s long-term strategy to become self-reliant in fighter aircraft production. The Tata–Dassault venture will complement these efforts by offering world-class production facilities, a trained workforce, and technology benchmarks.
Challenges and the Road Ahead
Despite the positive outlook, the project comes with several challenges:
Infrastructure Development: Setting up a facility that meets Dassault’s high standards will require time and capital.
Workforce Readiness: Training and retaining a high-skilled workforce will be critical.
Global Certification: Since these fuselages will be used internationally, they must meet strict international standards.
Geopolitical Factors: Defence deals often come under scrutiny due to shifting political alliances and tensions.
However, given the scale, planning, and government support behind this initiative, these challenges are expected to be overcome with careful execution.
The collaboration between Dassault Aviation and Tata Advanced Systems marks a historic shift in India’s defence manufacturing capability. By producing Rafale fighter jet fuselages in Hyderabad, India is not only advancing its strategic autonomy but also placing itself on the global aerospace manufacturing map.
This joint venture will create high-quality jobs, promote technology transfer, boost exports, and support India’s long-term military readiness. More than a defence deal, this is a step toward transforming India into a major industrial and technological power in aerospace and defence.
The Dassault–Tata partnership is a clear reflection of India’s ambitions to become not just a defence buyer, but a defence builder and exporter for the world.
