defence contract
In September 2016, India and France signed a €7.87 billion Intergovernmental Agreement (IGA) for 36 Rafale multi-role fighter jets in fly-away condition. India chose Dassault over its traditional partner Russia’s MiG. The deal has a 50% offset clause to be executed by Dassault Aviation and its partners in partnership with Indian companies. The basic cost of the aircraft is about ₹680 crore. This deal is India’s biggest-ever procurement. Besides the missile systems, the Rafale jets will come with various India-specific modifications, including Israeli helmet-mounted displays, radar warning receivers, low band jammers, 10-hour flight data recording, infra-red search and tracking systems among others. Defence Minister Rajnath Singh received the first Rafale jet at an air base in France on October 8. The first batch of four Rafale aircraft will arrive in India by May 2020.
