Dassault Aviation partners with Reliance Infra's unit to manufacture Falcon 2000 jets in India, RInfra shares rise 5%

Mumbai, June 18, 2025 — In a significant boost to India’s aerospace and defense manufacturing sector, France’s Dassault Aviation has announced a partnership with Reliance Infrastructure Limited’s (RInfra) subsidiary, Reliance Aerospace, to manufacture Falcon 2000 business jets in India. The move comes as part of Dassault's broader “Make in India” strategy and is seen as a milestone in the country’s ambition to become a global hub for aircraft manufacturing. Following the announcement, shares of Reliance Infrastructure rose 5% intraday on the Bombay Stock Exchange, reflecting strong investor confidence.

Strategic Partnership to Boost India's Aviation Manufacturing

The joint venture between Dassault Aviation and Reliance Aerospace will focus on assembling Falcon 2000 aircraft at the Dassault Reliance Aerospace Limited (DRAL) facility in Nagpur, Maharashtra. DRAL was originally set up in 2017 and had played a pivotal role in the offset obligations related to the Rafale fighter jet deal.

“India is poised to become a major manufacturing destination, and we are proud to deepen our partnership with Reliance to support Prime Minister Narendra Modi’s vision of self-reliant India,” said Eric Trappier, Chairman and CEO of Dassault Aviation.

He added, “The Falcon 2000 platform, known for its range and versatility, is the ideal aircraft to commence large-scale civil aircraft manufacturing in India. This partnership is not only about technology transfer but also about creating jobs, building skills, and developing an aerospace ecosystem.”

Business Impact and Market Reaction

Reliance Infrastructure's stock jumped 5% in intraday trading, closing at ₹295.40, amid high volumes and bullish sentiment. Analysts attribute the surge to the long-term revenue visibility and strategic value the deal brings to Reliance Infra’s diversified portfolio.

“The Falcon 2000 deal with Dassault will drive value creation for Reliance Infrastructure. It adds a high-tech vertical to their business and reinforces their role in India’s civil aviation and defense ecosystem,” said Rachit Mehra, aviation analyst at Ambit Capital.

Shares of RInfra have already gained nearly 20% in the past month, fueled by expectations of increased defense and aviation contracts under the government’s production-linked incentive (PLI) schemes.

Falcon 2000: A Proven Business Jet

The Falcon 2000 is a twin-engine business jet known for its spacious cabin, fuel efficiency, and operational flexibility. With a range of over 3,000 nautical miles, it is ideal for regional and intercontinental missions. Over 600 Falcon 2000 aircraft are currently in operation worldwide, making it one of Dassault’s most successful models.

Under the agreement, the final assembly, interior fitment, and testing of Falcon 2000 jets will be conducted at the DRAL plant. Dassault plans to manufacture around 30 aircraft over the next five years, depending on market demand and regulatory clearances.

Strategic Importance for India’s Aviation Ambitions

The deal marks a new chapter for India’s ambition to not only assemble but also design and export advanced civil aircraft. The move is expected to generate over 1,000 high-skill jobs and contribute to technology transfers and vendor development in the country.

“The collaboration is a perfect example of how foreign OEMs can leverage Indian talent and infrastructure to deliver world-class platforms,” said Group Captain (Retd.) Rajeev Arora, a defense and aviation consultant. “This is a stepping stone toward indigenous aircraft manufacturing capabilities.”

Government officials also welcomed the announcement, highlighting it as a demonstration of global confidence in India’s manufacturing ecosystem. The Ministry of Civil Aviation and Ministry of Defence are expected to facilitate approvals and logistics to ensure the success of the joint venture.

Investor Outlook and Industry Implications

Industry experts believe the Dassault-Reliance partnership could unlock additional opportunities, including potential exports to Asia-Pacific and Middle Eastern markets, where demand for midsize business jets is rising. India’s strategic location and cost-effective workforce further enhance the venture’s competitiveness.

For Reliance Infrastructure, which has been navigating a turnaround strategy, the announcement provides a fresh growth lever and boosts its image as a key player in defense and aerospace manufacturing.

“This deal could become a long-term growth engine,” noted Shweta Desai, Head of Equities at Lotus Capital. “Investors should watch for execution timelines and order flow announcements, which could further re-rate the stock.”

Dassault Aviation’s decision to manufacture Falcon 2000 jets in India through a partnership with Reliance Infra’s unit marks a pivotal moment for Indian aerospace. It underscores global confidence in India’s industrial capabilities and is set to generate employment, boost exports, and enhance technological self-reliance.

With growing support for indigenization and a clear government push for advanced manufacturing, India’s dream of becoming a global aviation powerhouse is slowly taking flight — and investors are taking note.