Jade
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Depends on what you mean with lethal. As far as I'm concerned, the Gripen 39E would be every bit as lethal as the Rafale if not more. From the available sources, it has a smaller frontal RCS, it can use the Meteor to its full extent where's the Rafale's Meteor is only fitted with a one-way link, the Gripens AESA is in the same league as the Rafales RBE2, but it arguably has a better connection with the IRST system and a wider coverage. In BVR combat, I believe the Gripen is definitely a force to be reckoned with.
Saab has declared many times that they need an important strategic partner to survive in the future where fighter jet orders become smaller due to the price of the planes. Also one of the reasons as to why Saab has offered so rich industrial off-sets.
SAAB has many times indicated that is going to go beyond the industrial off-sets and ToT with regard to MMRCA. Alas, India could not latch the opportunity.