India has given initial approval for a 3.6-trillion-rupee ($40 billion) military modernization package that includes additional Rafale fighter jets and Boeing P-8I reconnaissance aircraft. The Defence Acquisition Council's clearance comes as India faces heightened regional tensions and seeks to rebuild its fighter squadron strength, which has fallen to 29 from an earlier target of 42.

The package addresses critical gaps in India's aging fleet, including the retirement of MiG-21s in September and the planned decommissioning of MiG-29s, Jaguars, and Mirage 2000s. While India has pushed for domestic manufacturing under Prime Minister Modi's leadership, with HAL producing Tejas fighters domestically, engine supply chain issues have delayed deliveries of the locally-made aircraft.

This massive procurement follows India's April agreement for 26 Rafale-Marine jets for its aircraft carriers and precedes French President Emmanuel Macron's upcoming visit to India. The approvals pave the way for finalizing commercial and technical details, with earlier reports suggesting the Rafale component alone could be worth 3.25 trillion rupees. The deal represents one of India's largest defense acquisitions as it modernizes its military capabilities amid regional security challenges.