India signs Rs 63,000-crore deal to purchase 26 Rafale fighter jets for Indian Navy: 10 key takeaways

The Narendra Modi 3.0 government on Monday said it has signed an inter-governmental deal with France to procure 26 Rafale-Marine fighter jets—a carrier-borne combat-ready aircraft—for the Indian Navy. The deal—involving 22 single-seater and four two-seater aircraft—was estimated to be worth Rs 63,000 crore. The order is set to give more teeth to the Indian Navy amid growing concerns over China’s maritime presence in the Indo-Pacific region.

Raksha Mantri Rajnath Singh and Minister of Armed Forces of France Sebastien Lecornu signed the agreement in the national capital, the signed copies of which were exchanged by officials from both sides in the presence of Defence Secretary Rajesh Kumar Singh.

The news sent a number of defence stocks soaring on Monday.

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Here are 10 important things to know about this development:

• The government-to-government pact includes key aspects such as weapons, crew training, simulators, spares, associated ancillary equipment, and performance-based logistics support from the French government, according to an official release.
• The deal includes the transfer of technology for the integration of indigenous weapons in the country, is in line with the Modi government’s ‘Aatmanirbhar Bharat’ (Self-reliant India) push. 
• Deliveries under the deal are expected to be completed by 2031.
• The agreement covers procurement ensuring direct deliveries, with no intermediaries.
• The development follows a key approval by the Prime Minister Narendra Modi-led Cabinet Committee on Security on April 9.
• The 26 aircraft, with the said configuration, will be manufactured by Dassault Aviation, a French aerospace company.
• The jets will be deployed on aircraft carriers INS Vikrant and INS Vikramaditya.
• The deal is set to create thousands of employment opportunities and revenue for a large number of micro, small and medium enterprises (MSMEs) in the setting up, production and running of related facilities.
• The deal also covers ensure logistics support and spares for the 36 Rafale jets inducted into the Indian Air Force (IAF) in 2016. That deal was worth Rs 59,000 crore.
• The procurement of the aircraft is set to substantially enhance the joint operational capability of the Indian Navy and the Indian Air Force. “The induction would lead to the addition of a potent force multiplier to the Indian Navy’s aircraft carriers, substantially boosting the nation’s air power at sea,” noted the statement.