India to Finalize 114 Rafale Jets, 60 MTA Aircraft, and AEW&C Systems by 2026-27

India plans to sign significant defense contracts in FY 2026-27, including 114 Rafale fighter jets, 60 medium transport aircraft (MTA), and airborne early warning and control (AEW&C) systems. The IAF's capital budget has increased by 37.03% compared to 2025-26, with funds allocated for modernization and technology upgrades. The Rafale deal, costing approximately Rs 3.25 lakh crore, will involve local manufacturing in collaboration with Dassault Aviation. The MTA program aims to replace the aging An-32 fleet, with a budget of Rs 1 lakh crore.

Published Mar 25, 2026

India's Ministry of Defense plans to finalize contracts for 114 Rafale fighter jets, 60 medium transport aircraft (MTA), and airborne early warning and control (AEW&C) systems in FY 2026-27. The IAF's capital budget has risen by 37.03% compared to 2025-26.

AI-curated by Theia

The Rafale deal, approved by the Defense Acquisition Council, is expected to cost around Rs 3.25 lakh crore, with manufacturing in India by Dassault Aviation. The MTA program, estimated at Rs 1 lakh crore, aims to replace the An-32 fleet, requiring 12 ready-to-fly aircraft and 48 to be locally produced. The IAF is focusing on modernization and technological upgrades.