India signs €7.8b deal for 36 Rafale fighter jets from France

New Delhi: India signed a deal to buy 36 Rafale fighter jets from France on Friday for close to €7.8 billion ($8.7 billion) on Friday, the country's first major acquisition of fighter planes for two decades.

France's Defence Minister Jean-Yves Le Drian inked the agreement with his Indian counterpart Manohar Parrikar in New Delhi, ending almost 18 months of wrangling over financial terms between New Delhi and Dassault Aviation, the jet's manufacturer.

India's defense ministry said it would confirm the exact price later on Friday, but officials said it would be close to €7.8 billion.

Industry observers say the Indian Air Force favoured the Rafael as the IAF is a long-time and satisfied user of French fighters going back to the Dassault Ouragan in the 1950s.

The India Air Force is also appreciative of the performance of French Mirages during the 1999 Kargil campaign against Pakistan, and of the support it then obtained from France.

In that campaign, India reportedly obtained French clearance – and possibly more — to urgently adapt third-party-supplied laser-guided bombs to the Mirages, which were thus able to successfully engage high-altitude targets that Indian MiG-23s and MiG-27s had been unable to reach. 

Experts said the Rafale was preferred because of lower costs, and the IAF's familiarity with French warplanes.