"The delivery of these aircraft would be completed by 2030, with the crew undergoing training in France and India," the ministry said, adding that the deal is expected to generate thousands of jobs and revenue for a large number of businesses.
The purchase
was approved earlier this month by India's security cabinet, chaired by Prime Minister Narendra Modi, Reuters reported.
The Indian Air Force currently operates 36 Rafale fighters, while the navy's aircraft fleet mainly comprises Russian MiG-29 jets.
India is seeking to modernise its military, reduce dependence on Russian-origin equipment, and boost domestic weapons production to supply forces deployed along two contentious borders with Pakistan and China.
The Indian navy has flagged China's growing presence in the Indian Ocean over the past decade, with Beijing operating dual-purpose vessels in the region and maintaining a military base in Djibouti since 2017.
It also marks another step in India's long-standing reliance on French military hardware, including Mirage 2000 jets bought in the 1980s and Scorpene-class submarines ordered in 2005.
($1 = 84.9950 Indian rupees)