Rafale Deal between India and France stuck again due to Price Issue

Rafale Deal between India and France: Negotiations on the purchase of 36 French Rafale combat aircraft by India always stumble over the price and could last several months, said the Indian Defense Minister. “The price is the problem yet to be solved, because as long as I do not get the right price, I can not sign, but we resolved the other issues in terms of safeguards, procurement and modalities manufacturing, “said Manohar Parrikar on channel India Today.

Rafale Deal between India and France

France and India have reached the end of January an interim agreement on the acquisition of 36 Rafale on the occasion of the visit of François Hollande in India, but without agreement on the financial arrangements. The CEO of Dassault Aviation, Eric Trappier, had then said he hoped to sign a contract within four weeks.

“I can not hurry on the price as I am not satisfied,” said the Indian minister. “We need the people concerned gather, exercise continues, I would say, for a few months,” said Manohar Parrikar before specifying “do not want to set a deadline for the negotiations on the price.” “I am optimistic about the success” of the negotiations, he said. He also assured that the two parties agreed on the fact that 50% of the contract amount will be invested on Indian soil. The amount of the contract is estimated at several billion euros.

The negotiations on the sale of French fighter aircraft to India for years are the red thread of relations between the two countries. Exclusive talks between Dassault and India over a wider control 126 devices had been opened in January 2012 without success. Indian Prime Minister Narendra Modi had then resided the contract by announcing in April that India wanted to buy 36 Rafale.