From Rafale To HAMMER: India-France Defence Ties Deepen With IOL-Safran Deal, ‘Make In India’ At Heart Of Pact
The two systems being manufactured SIGMA 30N and CM3-MR play vital roles in modern combat. Image courtesy: AI-generated picture via Sora
India’s expanding strategic defence partnership with France has received another boost, reinforcing momentum built after the induction of the Rafale fighter jets and a recent MoU by leading PSU Bharat Electronics (BEL) with Safran for the local production of HAMMER air-to-surface missiles.
In the latest development, India Optel Limited (IOL), a Mini Navratna Defence PSU, has signed a collaboration agreement with French defence major Safran Electronics & Defence for the transfer of production of two high-precision, battle-tested systems to India, marking a significant step forward for the government’s Make in India initiative.
The agreement was signed on Monday (December 22, 2025) in New Delhi by IOL Chairman-cum-Managing Director Tushar Tripathi and Alexandre Ziegler, Head of Safran Electronics & Defence’s Defence Global Business Unit.
IOL-Safran deal: What systems will be manufactured in India?
Under the agreement, two advanced Safran systems will now be produced domestically:
SIGMA 30N Digital Ring Laser Gyro Inertial Navigation System – a critical technology used across artillery guns, air defence systems, missiles and radars.
CM3-MR Direct Firing Sight – designed for artillery guns and emerging anti-drone applications.
These systems are already combat-proven and widely deployed by advanced militaries, making their localisation strategically significant for India. Officials said the pact builds on an MoU signed in January 2024 and formally confirms the commitment of both partners to manufacture, support and sustain these advanced systems within India.
Who will manufacture what?
As part of the partnership, miniratna defence PSU IOL will handle manufacturing, final assembly, testing and quality control. The company will also provide full life-cycle support, ensuring operational readiness for the Indian Army and other users.
By blending IOL’s domestic industrial base with Safran’s expertise in inertial navigation and fire-control technologies, the collaboration is expected to strengthen India’s defence manufacturing ecosystem and enhance the combat effectiveness of its land forces.
India-France defence ties: Rafale synergy to HAMMER missiles
The Optel–Safran agreement comes close on the heels of a major milestone achieved last month, when Safran entered into a joint venture with BEL for the co-production of the HAMMER (Highly Agile Modular Munition Extended Range) smart air-launched weapon in India.
The HAMMER system, which equips the Indian Air Force’s Rafale fighters, has reportedly been employed in precision strike roles during Operation Sindoor, underlining the operational depth of Indo-French defence cooperation.
Combat-proven, precision-guided weapon system known for its high accuracy and modular design, makes HAMMER adaptable for multiple platforms, including the Rafale and Light Combat Aircraft Tejas. It fills a crucial gap for the Rafale fleet, which lacked a short-range precision strike option of around 70 km.
Beyond weapons: Engines, avionics and future fighters
Safran’s footprint in India spans far beyond missiles and sensors. It is working in collaboration with DRDO’s Gas Turbine Research Establishment (GTRE) for a new-thrust engine for India’s fifth-generation Advanced Medium Combat Aircraft (AMCA). Safran is also engaged in joint work with Hindustan Aeronautics Limited (HAL) on helicopter engines.
Through the SAFHAL (Safran-HAL) joint venture, co-development of the Shakti/Ardiden engines powering Indian helicopters, and the ongoing design of the Aravalli engine for future heavy-lift platforms.
Safran also supplies inertial navigation systems for Indian fighters such as the Tejas, MiG-29 and Jaguar, and has set up maintenance, repair and overhaul (MRO) facilities in India—including a dedicated facility for the Rafale’s M88 engine.
Taken together, the Optel manufacturing pact, the HAMMER missile JV and Rafale-linked industrial investments signal a deepening India–France defence relationship, one that is increasingly focused on co-development, local production and technology sovereignty rather than simple buyer-seller dynamics.
