India is procuring the jets from French defence major Dassault Aviation for deployment on board aircraft carrier INS Vikrant.
Defence Minister Rajnath Singh was present at the signing ceremony.
The sealing of the mega deal came three weeks after the Cabinet Committee on Security (CCS) headed by Prime Minister Narendra Modi cleared the procurement.
Under the terms of reference, the delivery of the jets will have to start around five years after signing of the contract.
In July 2023, the defence ministry accorded the initial approval for the mega acquisition following a series of deliberations and evaluation tests of the platform.
Under the deal, the Indian Navy will also get associated ancillary equipment, including weapon systems and spares from Dassault Aviation, the manufacturer of Rafale (Marine) jets. PTI MPB DV DV