India, France holding hard negotiations on multi-billion Euro Rafale Marine jet deal

A French team is negotiating the multi-billion Euro Rafale marine jet deal with the Indian authorities for the last two days, and the two sides are discussing pricing and other important issues.

The negotiations were supposed to be held by the end of May but were shifted to June 12 onwards due to the 2024 Lok Sabha election.

“The negotiations are going on between the Indian and the French side for which they are in India. The deal is going to be worth over Rs 50,000 crore with the entire package,” sources in the defence sector told India Today.

The Indian side includes defence ministry’s acquisition wing officials and Indian Navy officials, they said.

The Indian side is keen to wrap up the negotiations and complete the contract by the end of this fiscal year.

This project is important for the Indian Navy's fighter aircraft fleet, complementing the existing Russian-origin MiG-29K fighters.

If the deal goes through, the Rafale Marine jets from Dassault Aviation will replace the currently deployed MiG-29s, marking India's second major purchase of fighter jets from French defence manufacturer in recent years.

The procurement includes 22 single-seated Rafale Marine aircraft and four twin-seater trainer versions.

The acquisition talks comes at a time when the Indian Navy has been facing a shortage of aircraft and submarines, emphasising the urgency of meeting its requirements.

The Defence Acquisition Council (DAC) already gave its approval for the purchase paving the way for a significant boost to India's naval arsenal.

India and France have been in talks for enhancing Make in India elements in the present order as India wants to develop its aircraft manufacturing industry.