India, France ink deal for 36 Rafale fighter jets

New Delhi, Sept 23: India and France today signed the Euro 7.87-billion (Rs 59,000 crore approx) deal for Rafale fighter jets, equipped with latest missiles and weapon system besides multiple India-specific modifications that will give the IAF cutting edge capability over arch rival Pakistan.

The deal was signed by Defence Minister Manohar Parrikar and his visiting French counterpart Jean Yves Le Drian sixteen months after Prime Minister Narendra Modi announced India's plans to buy 36 Rafale fighter aircraft in fly away condition during his trip to France.

The deal comes with a saving of nearly 750 million Euros, gained through hard negotiations by the Indian side, over the one struck during the previous UPA government, which was scrapped by the Narendra Modi government, besides a 50 per cent offset clause.

The 50 per cent offset clause means that Indian businesses, both big and small, will gain work to the tune of over three billion Euros.