Deal to directly purchase Rafale makes sense
It is not clear how the earlier agreement with Dassault Aviation and the Union Ministry of Defence for the purchase/manufacture of Rafale fighter aircraft will proceed. But it is evident that Prime Minister Narendra Modi has recognised the urgency of equipping the Indian Air Force's depleting squadron strength. The realisation has led him to suggest an out-of-the-box solution: The direct purchase of Dassault's 36 medium multi-range combat aircraft via a Government-to-Government deal. If things go well, the fighter planes should be delivered in the three years or less. Mr Modi's initiative must be seen in the context of the fact that, as against the stipulated 42 squadrons, the Indian Air Force presently has 34 operational ones, and even they have aircraft that need to be phased out in the coming years.
Such has been the shrinking of squadrons that, according to some estimates, the Indian Air Force will near the level Pakistan has — what to speak of India matching China's air power! But, given that the 36 planes will only serve to strengthen two squadrons, more fighter jets will be needed. It is here that the in-principle deal the previous Congress-led UPA Government had reached with Dassault for the supply/manufacture of 126 Rafale planes will be closely watched. There is confusion as of now on whether the agreement, which stipulated off-the-shelf supply by Dassault of 18 planes and the rest to be manufactured at Hindustan Aeronautics limited, will be abrogated or modified. Had the Government continued on the beaten track, it could have taken months or even a year and more for the creases to be ironed out regarding issues of pricing and accountability over quality. Moreover, the tortuous negotiation does not guarantee an agreement.
In other words, months or even a year from now, the Indian Air Force would have been back to square one. With the supply of 36 Rafale planes soon, the Defence Ministry can either proceed with the Dassault deal in a modified form or look elsewhere for its needs. There is criticism that the new solution compromises on the Prime Minister's Make in India programme, since the planes will now be directly supplied by Dassault via the French Government and not manufactured in the country. But this presumes that the earlier agreement will be entirely scrapped. Also, it is not as if the Make in India project hinges on the Dassault deal. French firm Areva will be partnering Indian companies in the Jaitapur nuclear power project in Maharashtra. Mr Hollande has announced his country's collaboration with India in the railways and other infrastructure sectors — all of which will boost the Make in India dream.
The Rafale breakthrough must also be viewed from a political-strategic perspective. France has been a trusted friend and has openly backed India's entry in the UN Security Council as a permanent member. It was among the first countries to re-establish technology ties with India after the US-led sanctions were imposed on New Delhi following the 1998 nuclear tests. The India-France bilateral presently punches far below its weight, and there is enormous scope for it to grow in multiple areas, including trade, defence, tourism and technology. The new Rafale deal can prove to be an apt appetiser.