The new Dassault Reliance Aerospace manufacturing facility will be located in Mihan, Nagpur, in the Indian state of Maharashtra.
The facility will produce several components of 36 Rafale fighters that are being purchased from France under a €7.87bn contract signed between the Indian and French governments in September last year.
The twin-jet fighter aircraft can operate from either an aircraft carrier or a shore base to carry out all combat aviation missions.
It can be used for air defence, interception, ground support, in-depth strikes, reconnaissance, anti-ship strikes and nuclear deterrence.
Reliance Group chairman Anil D Ambani said: “The Reliance Dassault partnership will bring high levels of technology transfer. It will make India a major supplier into the global aviation supply chain.
“It will be the endeavour of both Dassault and Reliance to fully support Prime Minister Modi’s “Make in India” and “Skill India ” policies and to accelerate India’s pursuit of self-sufficiency in the aerospace sector.”
The facility will also train thousands of workers in aviation assembly and integration.
Dassault Reliance Aerospace will also be involved in the production of components for the Falcon 2000 series of civil jets manufactured by Dassault Aviation.
The JV also intends to set up final assembly of Rafale and Falcon aircraft.