After a three years effort, India’s Defence Minister, Manohar Parrikar, spoke of an impasse in negotiations with his French counterparts. This is a serious blow to the French aviation industry which just last month announced that the deal would be completed in the first half of 2015.
Icing on the cake…The Defence Ministry announced it is now considering buying Russian Sukhoi Su-30 MKI, which according to the Defence Ministry are ‘absolutely suitable for the needs of the Indian Air Force and half the price’ of the French made Rafales.
We are also sure India feels much more comfortable purchasing from a supplier that will not fold to US/NATO pressure on a whim…Red Pill
Re-examining France’s Mistral policy…India may cancel $22 Billion Rafale fighter jet contract and instead purchase Russian Su-30 jets
2 comments:
Is it that much cheaper because the rouble collapsed vs. rupee and rupee stayed about the same vs. Euro?
I'd like to know in what specific currency the deal is being priced in...
As usual in the US press, everything is marked to the domestic currency...
rsp
In the final analysis, India pays in rupees (INR) or in the INR value of resources needed for the exchange since the INR since this the unit of account there.
The French likely want payment in USD or EUR, whereas it's likely that the Russians are willing to take RUB, which increases the value of the RUB by creating demand. India will have to draw on foreign reserves or convert INR to the required currency.
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