DTN News - INDIA DEFENSE NEWS: Ripple Effect From India's Biggest Defense Deal
(NSI News Source Info) TORONTO, Canada - March 6, 2012: First it was the United States that got annoyed, and now it is Britain's turn to ask some tough questions about its India policy. Ever since the French Rafale fighter was declared the lowest bidder in the multibillion dollar contract to provide a new generation fighter for the Indian Air Force, a debate has been raging in the United Kingdom as to what went wrong with Prime Minister David Cameron's charm offensive in wooing India.
His visit to India in 2010 was widely viewed as a highly successful. He made all the right noises in India about Pakistan and terrorism, and there was a sense that U.K.-India ties had finally turned a corner. The Cameron government has also decided to give India £1.4 billion between now and 2015, amounting to almost 1 percent of Britain's own £159 billion debt.
But when it came to the much sought-after Medium Multi-Role Combat Aircraft (MMRCA) contract, France was the winner and the Eurofighter, produced by a consortium of four nations, including Britain's BAE systems, lost. Apparently, saying the right things and giving aid doesn't get you any influence in New Delhi!
From the very beginning, this saga has been rather interesting. Last year in April, India rejected bids by Lockheed Martin and Boeing (along with Russian and Swedish bids) for the $10 billion-plus contract for the 126 combat aircraft, despite extensive lobbying by the U.S. military-industrial complex, supported by President Barack Obama himself.
Nothing works better in New Delhi than a putdown to the U.S. — and that was quite a snub indeed! Instead, New Delhi short-listed Dassault Aviation's Rafale and the Eurofighter Consortium's Typhoon. There were extensive field trials, and technical considerations ostensibly drove the final decision. But the dismay in Washington was widespread and, to some extent, understandable given the investment that the U.S. has made in cultivating India in recent years.
The focus then shifted to the French vs. British, Rafale vs. Eurofighter rivalry in which the French came out on top. Dassault Aviation, Rafale's French manufacturer, will be entering into commercial negotiations with India over the next few months before final deals are signed. As this is a company that has been struggling to get foreign buyers, it would be keen on signing the contract more or less on Indian terms.
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