Reliance Infra shares surge 4% as Dassault plans fighter jet manufacturing in India

Reliance Infrastructure shares jumped 4% after Dassault Aviation CEO Éric Trappier revealed plans to establish a final assembly line (FAL) for Rafale fighter jets in India. This move aligns with India’s anticipated large orders and strengthens the French aerospace giant’s partnership with Dassault Reliance Aerospace Limited (DRAL) in Nagpur.

Dassault is facing a surge in global demand for the Rafale, a 4.5-generation multirole fighter. India has already received 36 Rafales under a $9.4 billion deal, and the Indian Air Force (IAF) is now eyeing additional jets to address a 200-aircraft shortfall. Meanwhile, the Indian Navy is finalizing a deal for 26 Rafale Marine variants for INS Vikrant. Given these demands, Dassault is exploring local assembly to enhance production capacity beyond its Mérignac plant in France.

Establishing a Rafale FAL in India would streamline production, reduce costs due to lower labor rates, and enhance supply chain efficiency. It would also support India’s “Make in India” initiative by generating jobs and fostering technology transfer. DRAL already produces Rafale components in Nagpur, and this expansion could see full aircraft assembly, similar to Lockheed Martin’s F-16 lines in Turkey.

For Dassault, an Indian FAL is a strategic advantage, ensuring competitiveness in the IAF’s Multi-Role Fighter Aircraft (MRFA) tender for 114 jets. The facility, expected to cost $500-700 million and take 3-5 years to set up, could make India a major aerospace hub.

With potential orders exceeding 100 Rafales and ongoing supply chain disruptions in Europe, Dassault’s India push marks a crucial shift. The move strengthens Reliance Infra’s position, fueling investor optimism as India emerges as a key player in global defense manufacturing.

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