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A political agreement in the absence of a contract. Francois Hollande signed Monday, January 25 in New Delhi, a memorandum of understanding for the sale of 36 Rafale combat aircraft to India with the Indian Prime Minister. “We will find solutions to the financial problems as quickly as possible” , said the head of the Indian government, Narendra Modi. François Hollande wanted to believe, meanwhile, that “these financial issues will be resolved in the coming days” .
Discussions “progressing” announced the head of state on Sunday upon his arrival at the military airport of Chandigarh, capital of Punjab, stressing that this political agreement depended on the conclusion of the sale itself: “The contract [...] can only come after the intergovernmental agreement. This is an intergovernmental agreement that will allow the trade agreement. “
The MoU does not guarantee in any way the future sale of the Rafale. A similar agreement was signed between India and Russia in 2007 for the co-production of fighter aircraft … without that never see the day.
” Rafale merchant trading ‘
Indian side, it reveals clearly less diplomatic. “The intergovernmental agreement negotiated simultaneously with the trade agreement. It is not he who hinders negotiations “, says Ajai Shukla. According to this expert on defense issues, the discussions actually stalled over the price. India had abandoned in April 2015, his call for tender for 126 fighter jets, after which Dassault had been detained, to avoid the additional costs of an assembly unit in India, such as creating a chain of manufacture or technician training
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According to the daily information Hindustan Times , India would require a price drop of around 10% to 20%, and Dassault would have made an offer valued at 11.6 billion euros. Not only the French aircraft manufacturer must offer a lower price, but it must also respect the Indian obligation to reinvest half the contract in “offsets”, namely to carry equipment on site. A delicate and complex operation for a contract of this magnitude, while the Indian defense industry is at an embryonic stage.
The finalization of an agreement on the sale by Dassault, 36 fighter, turns to the “Rafale merchant trading ‘, ironically a member of the French delegation accompanying Hollande in his State visit to India. At the point that the French-Indian talks seem seriously skate, and give the impression of having little progress since the announcement by the Indian Prime Minister, during his visit to Paris in April 2015.
“The process is extremely complex and slow”
India is looking to save money to invest in the production of its own fighter planes. “By buying 36 Rafale at a lower price than that set in the call for tenders for 126 devices, I save the price of 90 Rafale. We will use this money to buy Tejas LCA [Indian manufacturing] “, said in May 2015, the Indian Defence Minister, Manohar Parrikar.
Mr. Modi, who launched the “Make in India” program at the beginning of its mandate, is very attached to the indigenization of production Industrial. India imports nearly 70% of its equipment, and became one of the first arms importers in the world. Another sticking point: the level of equipment and sophistication hunters. India hoped that the latter is the highest possible
A senior defense official summary. “With the Indians, negotiations are still extremely complex. The state apparatus is quite fragmented. Obtain the agreement of a branch of government does not mean having the agreement of all the branches. The process is extremely complex and slow. There is no anomaly, but we are faced with a government that consults minister after minister and each réinstruit administration while at the base. “ Hence the conclusion: ” The visit is part thriller. The Prime Minister Modi is the final decision maker. “
Le Drian in VRP of the French armament
India is torn between the imperative to modernize its army of air and the political will of “made in India”. The air force has only 34 squadrons of 18 aircraft each, then he would need at least 41-45 to address a conflict with Pakistan and China. “We need 6 type aircraft Rafale squadrons “, explained in October, the Chief of Staff of the Air Force. The most obsolete equipment, to replace a priority, however, are light aircraft such as Tejas, manufactured locally.
Several analysts point out that the Rafale is not adapted to the needs of the army of air, given the power relations with neighboring countries. “Even with 36 combat aircraft like the Rafale, we will not get to China’s level and with our existing fleet, we are still superior Pakistan military vis-à-vis “ Ajai Shukla observed. The acquisition of an eighth type of combat aircraft like the Rafale finally could complicate the logistics and maintenance squadrons of the Indian Air Force.
A major player in the negotiation and large VRP of the French arms industry, the Minister of Defence, Jean Yves Le Drian, who has visited India several times, of course the trip, the president himself who asked to remain until the end of the trip. As if the suspense could last until the last moment.
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