India is believed to have run into difficulties in its negotiations with France over the cost price of 36 Dassault Rafale fighter aircraft, which it agreed to procure after a bilateral summit in Paris on 10 April, industry sources said.
The sources said differences had emerged in recent weeks over India seeking to impose offsets of 50% on the estimated contract price of USD6-7 billion.
Indian defence minister Manohar Parrikar had said in several TV interviews in New Delhi in late May that the Rafale contract included a 50% mandatory offset obligation.
Industry sources told IHS Jane's that during negotiations, French officials had reportedly told their Indian counterparts that their "insistence" on offsets would render the Rafale deal more expensive than the price tentatively agreed upon in Paris in April.
Indian Rafale talks hit offset snag - IHS Jane's 360
The sources said differences had emerged in recent weeks over India seeking to impose offsets of 50% on the estimated contract price of USD6-7 billion.
Indian defence minister Manohar Parrikar had said in several TV interviews in New Delhi in late May that the Rafale contract included a 50% mandatory offset obligation.
Industry sources told IHS Jane's that during negotiations, French officials had reportedly told their Indian counterparts that their "insistence" on offsets would render the Rafale deal more expensive than the price tentatively agreed upon in Paris in April.
Indian Rafale talks hit offset snag - IHS Jane's 360
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