Eric Trappier, the Chairman and CEO of Dassault Aviation, the manufacturer of the French Rafale fighter aircraft, is scheduled to visit India for critical negotiations. Trappier, accompanied by Richard Lavaud, Head of Military Aircraft Sales, will engage in high-level meetings in Delhi.
During this visit, they are expected to meet with senior officials from the Prime Minister’s Office, Ministry of Defence, External Affairs Minister Jaishankar, National Security Advisor Ajit Doval, Defence Secretary Giridhar Aramane, Admiral R. Hari Kumar, and Chief of Navy and Air Force Chief Marshal V.R. Chaudhari.
This visit assumes considerable significance following Prime Minister Modi’s visit to France in July, where he was the chief guest for the Bastille Day Parade. During the visit, discussions were held between PM Modi and French President Macron regarding the sale of 26 Rafale aircraft to the Indian Navy.
It’s worth noting that the Indian Air Force had previously purchased 36 Rafale aircraft as part of a government-to-government (G to G) agreement, with a total cost of Rs 60,000 crore, resulting in a per aircraft cost of Rs 1600 crore. However, the base cost of the aircraft was closer to Rs 800 crore, with the remaining amount accounting for India-specific enhancements, training, simulators, and spares.
India’s expectation is that the 26 Naval aircraft should not exceed a cost of Rs 20,000 crore or Euro 2.2 billion. In contrast, the French projected cost exceeds 3 billion or Rs 30,000 crore, representing a significant premium of 50 percent. This cost discrepancy is being closely examined given the high degree of commonality between the air and naval versions of the Rafale aircraft.
This negotiation will be pivotal in determining the outcome of the Indian Navy’s acquisition of the Rafale fighters, further shaping India’s defense capabilities.
