27 September 2016

News Story: French fighter jet deal - an Indian saga

By Alexandre MARCHAND

The less-than-supersonic sale of French Rafale fighter jets to India has highlighted the obstacles facing foreign arms firms seeking to do business with the world's biggest weapons importer.

India has signed a series of key defence deals under Prime Minister Narendra Modi as part of a $100 billion upgrade of its Soviet-era military hardware, making it an attractive proposition for arms exporters.

But a series of corruption scandals have made India a challenging environment, with huge delays and a tough negotiation process.

After nearly a decade of discussions and setbacks India signed a deal Friday to acquire 36 Rafale fighter jets for 7.9 billion euros ($8.8 billion) as it seeks to bolster its military against an increasingly assertive China.

Defence experts say the aircraft, manufactured by France's Dassault, will provide a much needed boost to India's air force.

But the final windfall was much less than had been hoped for by the French.

"The Indians always conduct very tough negotiations. They are known for it," said Isabelle Saint-Mezard, a specialist in South Asian strategic issues at the University of Paris.

"They have all the major weapons suppliers knocking at their door, so they are well positioned to do so."

Eric Trappier, CEO of Dassault Aviation, has gained experience of India's bargaining tactics in recent years.

"India is a school of patience," he said.

The country ranks 130 out of 189 on the World Bank's Ease of Doing Business index -- the worst of all G20 countries -- and regulations vary capriciously across its 29 states, where even the same law can be interpreted in bafflingly different ways.

Read the full story at SpaceDaily