Big Jolt For France As Rafale Loses Rs 29,000-Crore Fighter Jet Deal To Sweden's Gripen

Last Updated:January 19, 2026, 12:38 IST

Dassault Aviation was expected to win a contract from Colombia to supply Rafale jets for the replacement of the country's ageing Israeli-origin Kfir fighters

Rafale continues to attract buyers beyond Europe, with India emerging as its most significant customer. (PTI file photo)

France’s Dassault Aviation has suffered a setback in the global fighter jet market, losing out on a deal worth nearly Rs 29,000 crore, even as India moves swiftly towards what could become one of the largest military aviation contracts in the world.

India is in advanced discussions to procure 114 Rafale fighter jets from France at an estimated cost of Rs 3.25 lakh crore. The proposed agreement has drawn international attention, with analysts closely comparing the Rafale’s capabilities with those of the US-made F-35. Amid this global spotlight, however, Dassault has failed to secure a crucial overseas order.

The French aerospace major was widely expected to win a contract from Colombia to supply Rafale jets for the replacement of the country’s ageing Israeli-origin Kfir fighters. Colombian military officials had spoken favourably about the Rafale, and negotiations for a deal valued at around £2.96 billion (approximately Rs 27,000 crore) were reportedly close to completion. On paper, the agreement appeared all but final.

In a late turn of events, the Colombian government awarded the contract to Sweden’s Gripen fighter instead. No official explanation has been issued for bypassing the Rafale.

According to a report by bishopstrow.com, the Swedish offer stood out for reasons beyond the aircraft itself. Saab, the manufacturer of Gripen, is said to have proposed long-term industrial cooperation, technology transfer, and the possibility of local assembly in Colombia, along with significantly lower operational and maintenance costs.

Gripen has positioned itself as a cost-effective and adaptable fighter for mid-sized air forces. Lighter and more flexible than rivals such as the Rafale or the Eurofighter Typhoon, it is also cheaper to operate over its lifecycle. Colombian decision-makers reportedly saw the aircraft as an opportunity to develop a domestic aerospace manufacturing ecosystem, underlining a growing trend in defence procurement where sustainment costs and industrial benefits weigh as heavily as upfront price.

The Colombian decision has reignited debate over whether the Rafale is losing its competitive edge. France had earlier faced a major blow in 2021, when it lost a high-profile submarine contract with Australia to the US and the UK under the AUKUS pact. Yet industry observers caution against reading too much into a single loss.

Rafale continues to attract buyers beyond Europe, with India emerging as its most significant customer. Around 300 Rafale jets have been built so far, forming the backbone of the French Air Force, which operates 234 of them. Dassault’s current order book stands at roughly 273 aircraft, with major customers including India, Qatar, Greece, Croatia and the United Arab Emirates (UAE).

India has already inducted 36 Rafale jets into the Indian Air Force (IAF) and signed a separate deal for 26 Rafale-Marine aircraft for the Navy. The proposed order for 114 additional fighters, if finalised, would make IAF  the largest Rafale operator in the world after France.

News world Big Jolt For France As Rafale Loses Rs 29,000-Crore Fighter Jet Deal To Sweden's Gripen

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