Mark Collins – Turbulence Again for France/India Rafale Fighter Deal?

Holy cow, dealing with Indians sure is difficult–at Foreign Policy’s “South Asia Daily”:

Sources say India’s purchase of Rafale fighter jets in jeopardy

According to sources involved in the negotiations, India’s order of 36 French made Rafale fighter jets has run into trouble with government officials struggling to agree on sales terms, four months after Prime Minister Narendra Modi intervened to remove deadlocks in prior negotiations (Reuters). Two senior Indian defense officials told Reuters that both sides could not agree on the unit price of the aircraft and a condition that planemaker Dassault Aviation has to invest a substantial percentage of the value of the multi-billion dollar contract within India.

Modi and French President Francois Hollande announced the deal which was followed by three years of commercial negotiations with the manufacturer Dassault but were stalled due to disagreements over assembling most of the aircraft in India. On May 16, Indian Defence Minister Manohar Parrikar told local media that negotiations over pricing would be finished in a “month or two,” a prediction which seems unlikely to come true now…

Lots more here on this sorry saga at Defense Industry Daily, and on Rafale exports here.

Mark Collins, a prolific Ottawa blogger, is a Fellow at the Canadian Global Affairs Institute; he tweets @Mark3Ds


3 thoughts on “Mark Collins – Turbulence Again for France/India Rafale Fighter Deal?”

  1. Latest on Rafale at DID (further links at original):

    “August 17/15: One sticking point in the ongoing government-to-government negotiations between India and France over the procurement of 36 Rafales has reportedly external link external link been identified. The Indian Air Force wants to modify the fighters to carry the indigenous Astra air-to-air missile, with the French refusing to do so; citing the associated cost increases with the required recertification such a move would entail. These contract negotiations have been playing out since the Indian Prime Minister announced the acquisition in April. The French government has lowered the per-unit cost of the deal, dropping this by 25% in May. They are offering French missiles instead of the Astra, likely manufactured by European missile house MBDA. The Indian Air Force also wants to integrate external link external link an Israeli-manufactured helmet display system, something which the French are unlikely to allow…”

    Mark Collins

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