India has depended on Russia for weapons since the Cold War. That dependence peaked at 76% of arms imports in 2009-2013 but has now fallen to 36%—while France has surged to become India's second-largest supplier, accounting for 33% of defense purchases. On February 17, 2026, the two countries signed an agreement to manufacture HAMMER precision-guided missiles in India, marking a shift from France selling finished weapons to both nations building them together.
The HAMMER deal coincides with negotiations over a potential $28-40 billion purchase of 114 Rafale fighter jets—India's largest-ever arms procurement. If finalized, 90 of those jets would be manufactured domestically. For India, the stakes are existential: its Air Force operates just 29 combat squadrons against a sanctioned strength of 42, a shortfall of roughly 200 fighters. For France, India represents both a massive export market and a strategic partner in the Indo-Pacific, where both nations are pushing back against Chinese expansion.