Indo-French defence deal.

India has selected the French Rafale over 5 other contenders, including Boeing, Lockheed Martin, Cassadian (formerly EADS), Eurofighter, Russian MiG 35 and SAAB.

• The $10.2 billion (Rs. 54,000 Crore) defense deal includes acquiring 126 aircrafts which are commonly known as Medium Multi-Role Combat Aircraft (MMRCA),
• 18 of them in fly-away condition and the rest to be made in India at the HAL facility under transfer of technology.

In the same financial year, GOI has also cleared the $2.4 billion upgrade of 51 Mirage-2000 aircrafts and the $970 million for the supply of MICA fire-and-forget missile for the same aircraft. With these deals France has entered a new era of relationship with India encompassing intelligence shearing, nuclear enrichment & reprocessing and even joint production of sub-theatre range missile.

Had the deal not gone through Dassault Aviation, which has been experiencing significant financial difficulties, would have been obliged to stop the Rafale program altogether.

Background

For over a decade, since the controversial days of India’s second series of nuclear tests in 1998 and Kargil war of 1999, South Block has recognized the steadfastness (firm in purpose or loyalty) of France in standing by India. It was perhaps the only country that did not cancel its maritime exercises after the Pokhran tests. A year later, France stood solidly behind India, along with Russia and Israel, when the conflict over the Kargil height erupted.

Unknowing to the public at large, India and France joined hands in the civil nuclear field 2 years after the independence. The agreement to extract Thorium from Monazite sand didn’t work out but France opened its doors to the Indian civil nuclear establishment leading to continue despite the 1974 nuclear test that led to Trans-Atlantic cartel to put the squeeze on India lasting for over 3 decades. It is also known that the 1998 visit of Jacques Chirac led to talks on French company Areva opening talks for setting up 6 nuclear power plants, the second country after Russia to do so, while Europe and the US were plotting to weaken the Indian nuclear industry by placing technology transfer restrictions and blacklisting Indian companies.