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Year of the Rafale

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Year of the Rafale

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Old 1st Jun 2015, 22:31
  #81 (permalink)  
 
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The Indians still have a Jaguar production line. Perhaps with a bigger wing and an engine with more thrust?

On a more relevant note, the latest events don't surprise me. The Indian's biggest problem isn't the rampant bureaucracy, its the lack of hard currency. Unless Dassault could come up with a way of turning Rupees into hard currency or reducing the need for it, there were always going to be problems. Even their own internal design efforts have stumbled on this issue. Their technological ability might not be top drawer in some areas but its quite a bit better than some european countries we could mention. Inevitably some aspects have to be bought in.

EAP
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Old 1st Jun 2015, 23:20
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But I thought India's growth was still up around 7%, 7th largest in the world. A member of the G20 and part of the BRIC economies - although that seems to have gone horribly wrong. But, anyway, the economy may not be what it was staring to do some years back, bi put it is still huge. A labour force of some half a billion and a GDP of 2.5 trillion dollars.

The issue, of course, is about money. Isn't it for everyone and always? But India wants to be a big force in the world and protect themselves and they will need to buy into some modern fighters to do that. (And a lot of other things, obviously).

The thing that makes me wonder is that they are going ahead with a buy of 36, whilst threatening to cancel (or not sign up to) the rest. What use could just 36 jets be to an entire sub-continent? If they really decided they couldn't afford it, they'd have ducked out of the whole deal.
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Old 1st Jun 2015, 23:40
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Courtney Mil,

I'm a simple soul, but perhaps one reason may be that they're not "the whole subcontinent". Their "Clear and Present Danger" is always Pakistan, with whom they have fought four wars since Independence.

The 36 might come in handy, with that in mind.

Danny.
 
Old 2nd Jun 2015, 02:21
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Schiller, thank you. Under 70 and laughing hard.
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Old 2nd Jun 2015, 07:55
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Economic health is one thing, access to currencies in which Dassault is prepared to be paid is quite another. The rupee has an official exchange rate but that is set by the government, not a market. Dassault would be lucky to trade rupees at 10 to 20% of the official rate which is some discount. India has lots of calls on its supplies of hard currencies for commodities such as oil and other goods their own resources can't supply and the IAF has to take their turn in the queue.

EAP
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Old 2nd Jun 2015, 08:11
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Of course, in the bad old days of the Raj, when they were so cruelly exploited by the imperialist, they had a stable exchange rate (fully convertible) of just Rs14/£.

They can only dream of that now.

D.
 
Old 2nd Jun 2015, 08:12
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Danny, of course you are right. It's a big reduction from the 126 they seemed to think they needed, but EAP's answer about currency clearly explains that. Thank you, both.
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Old 2nd Jun 2015, 08:13
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How did they pay their recent purchases of C17 / P8 / C130 / PC7 / 145 AEWCS etc ...
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Old 2nd Jun 2015, 20:45
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HH damn good question however I've no idea about the details in any of those cases. I would expect the reality to be a series of tailored deals combining a mix of bank credit, government export credit guarantees, offset agreements, overseas 'aid', a little creative accounting plus a bit of real cash. Even FMS deals can be eased if the US wants to extend their influence or just prop up home industry. The Indians (and others) are past masters at these sorts of arrangements and I wouldn't expect a full exposition of the terms in the near future.

Its said that BAES took 15 years to get the Indians to sign up to Hawk and for all that time technical support on various matters was used to keep the Indians interested. Profit on the sale of the platform was probably more a number on a page rather than anything substantial. The Indians will have got their money's worth.

Before anyone mentions it, while it may be commonly suspected, bribes hardly get a look in with these deals as the complexity prevents individuals having any sort of real decision making power.

EAP
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Old 5th Apr 2016, 15:14
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Kuwait order

As the Rafale deal in India continues to drag its feet, with open comments from the French that it may never happen, it appears Finmeccanica have managed to get over the line with the sale of 28 Eurofighter aircraft to Kuwait.

http://wap.business-standard.com/art...1700447_1.html
The Aviationist » Finmeccanica signs contract to supply 28 Eurofighter Typhoons to Kuwait

Last edited by Speedywheels; 5th Apr 2016 at 15:17. Reason: Added Rafale link
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Old 17th Apr 2016, 19:01
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Thumbs up

http://http://timesofindia.indiatime...w/51846326.cms

Finally, it looks like the Indians are going to put pen to paper
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