The Rafale negotiations with Dassault of France appear to have reached a deadlock that is as much as anyone can tell. When the deal is made the terms will probably surprise everybody. To briefly summarise, India agreed in principle to acquire 126 combat Rafale aircraft from Dassault of France, with the first 18 manufactured in France and the rest manufactured by HAL. The sticking points are price which started at $10 Billion and is now about double that, and guarantee of aircraft quality which was in the original tender. India insists that Dassault guarantee all 126 work correctly, whereas Dassault is unwilling to guarantee more than those manufactured in France. It does not even matter at this point who is right or wrong, because the stakes are high for both parties. India is sorely deficient in IAF squadrons, and Dassault is sorely deficient in international orders for the Rafale (it has none presently, and none in sight). If both parties walk away from the deal, there will be a perception that the IAF is not adequately provisioned and for Dassault it could mean the end of the Rafale.
