It's been more than a month since the 'mother of all deals' has been officialy cancelled and more than a month that the negotiations has been going on for only squadron two squadrons of rafales from projected seven.
New reports are saying that for those 36 rafales negotiations would keep on going if not till next month then maybe till the end of the year. According to various sources and reports India is asking for price which is much lower than what Egypt and Qatar are paying and the prospects of Egypt buying more aircrafts is very much viable. While the French authorities are offering the Rafale at a price which the french airforce acquire's the aircraft. But ever since the negotiations began the french have been raising the price of the aircraft and recently the cost of those 36 aircrafts asked by france is reported to be $8 billion , the French side is insisting that it cannot sell at a price below what has been sold to Egypt and Qatar. France is in the running for other sales of the Rafale, notably with the UAE and Malaysia and wishes to maintain its price of the aircraft this shows that India lost it's ability to pressure games with the french negotiators.
“Had India closed the deal for 126 fighters, it would have got a very good price,” said a French source on condition of anonymity. In three years, the price of the Rafale has gone up for all customers including the French Air Force and the Indian order is cut by three fourths.
The Egypt and Qatar orders are together worth more than the Indian order and potential new orders could further push the Indian deal lower in priority. Naturally India would have to pay more, he added.
An Indian news agency report said today that the negotiations could take a month more and that the two sides are working at a hectic pace with every effort being made to wrap up the talks fast as stated by Defenseworld.net
“Had India closed the deal for 126 fighters, it would have got a very good price,” said a French source on condition of anonymity. In three years, the price of the Rafale has gone up for all customers including the French Air Force and the Indian order is cut by three fourths.
The Egypt and Qatar orders are together worth more than the Indian order and potential new orders could further push the Indian deal lower in priority. Naturally India would have to pay more, he added.
An Indian news agency report said today that the negotiations could take a month more and that the two sides are working at a hectic pace with every effort being made to wrap up the talks fast as stated by Defenseworld.net