Rafale Deal to Strengthen India – France Strategic Partnership in Defence
The India-France Rafale deal will be a major breakthrough into the defence sector of India. India on Friday, 23rd September 2016, inked and inter-governmental agreement with France on acquiring 36 Rafale fighter aircraft, equipped with latest missiles and weapon system. The deal is one of the biggest deal India has ever signed worth 7.8 billion dollars.
A Major advancement is foreseeable in the defence sector with french agreeing to the 50% offset clause. The clause emphasises on the french agreement to call for investing 50% of the deal value in the “Make in India” projects for Defence, Aerospace and security sectors. As per the deal, the manufacturers of Rafale are committed to investing 4.5 billion euros in the industry. In return, the government of India has committed to further liberalise certain stringent defence policies concerning the manufacturers.
Like all other defence deal, this deal also has a 50% optional clause under which the Indian government can procure 18 more Rafale aircraft at the same price. But however, the Indian government has fairly stated that it would not order beyond 36. Deliveries are expected within 36 months after the signing of the contract and completed in 30 months from then.
With deal come to closure, the Indian government is spying for opportunities to build another fighter aircraft in India under transfer of the state of the art technology from the foreign investments.
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