India has signed a deal to buy 36 Rafale fighter jets from France for
around $8.7bn, the country’s first major acquisition of combat planes
in two decades and a boost for Prime Minister Narendra Modi’s plan to
rebuild an ageing fleet.
The first ready-to-fly Rafales are expected to arrive by 2019 and India is set to have all 36 within six years.
French
Defence Minister Jean-Yves Le Drian signed the agreement with his
Indian counterpart, Manohar Parrikar, in New Delhi, on Friday, ending
almost 18 months of wrangling over terms between New Delhi and
manufacturer Dassault Aviation.
Parrikar said the deal would “significantly improve India’s strike and defence capabilities”.
Air
force officials have warned for years of a major capability gap opening
up with China and Pakistan without new state-of-the-art planes, as
India’s outdated and largely Russian-made fleet retires and production
of a locally made plane was delayed.
India had originally awarded
Dassault with an order for 126 Rafales in 2012 after the twin-engine
fourth-generation fighter beat rivals in a decade-long selection
process, but subsequent talks collapsed.
Modi, who has vowed to
modernise India’s armed forces with a $150bn spending spree, personally
intervened in April 2015 to agree on the smaller order of 36 and give
the air force a near-term boost as he weighed options for a more
fundamental overhaul.
But an industry expert says the deal does not stand to benefit India.
“I
don’t think it’s a good deal,” Bharat Karnad, a research professor in
national security studies at the Centre for Policy Reseach, told Al
Jazeera.
“The original deal was for 126 aircrafts for a sum of
$12-15bn. If you look at 36 being bought for $9bn without any transfer
of technology, it ends up being a solution to ensure the health of the
aviation sector in France.
“The aircrafts are far too few to have a great operation significance in war.”
Al
Jazeera’s Natacha Butler, reporting from Paris, said there was a lot of
lobbying that took place behind the scenes to make this deal happen.
“It’s a big deal indeed for France and is expected to create up to 5,000 jobs here,” she said.
“The
36 planes will be built here before being sent to India ready for
service. At many stages, it looked as if it wasn’t going to be signed
but the French government and President Francois Hollande have been very
instrumental and lobbied hard over the years.”
‘Mark of recognition’
Friday’s
agreement is a major vote of confidence in the Rafale, which had long
struggled to find buyers overseas, despite heavy lobbying efforts by the
administration of President Hollande.
Hollande hailed the deal as recognition of France’s aviation industry.
“The
agreement … is a mark of the recognition by a major military power of
the operational performance, the technical quality and the
competitiveness of the French aviation industry,” Hollande said in a
statement.
India says its locally made Tejas fighter, which took
to the skies in July 33 years after it was cleared for development, will
form a major part of its future fleet, but Parrikar has also said that
India needed 100 new light combat aircraft by 2020 to replace Russian
MiG-21s.
India is the world’s biggest arms importer, and despite
Modi’s pledge to build a local manufacturing base, foreign defence firms
view India as one of the most lucrative markets as Western states trim
defence budgets.
Tensions have flared up between Pakistan and
India following the Uri attack last week that killed 17 soldiers in
Indian-administered Kashmir.
Pakistan Prime Minister Nawaz Sharif,
at his UN General Assembly address on Wednesday, said he did not want
an “arms race with India”. But Eenam Gambhir, India’s UN diplomat called
the neighbours “a terrorist state”, blaming the neighbouring country of
planning the attack in Uri.