Finally
French Rafale jet beats Eurofighter in $10bn India deal
Dassault Aviation will now enter final negotiations before any deal is signed for supplying India with 126 Rafale aircraft.
Correspondents say this is one of the world's biggest defence deals and is a major setback for rival bidder, the Eurofighter Typhoon.
Eurofighter lost out in December on an $8bn deal to supply jets to Japan.
Officials at the British High Commission in Delhi said they were disappointed with the decision and would now study the details.
A statement read: "It was expressly said this was about the cost of the contract, not a reflection on the health of bilateral relations between India and the countries."
The officials said they "genuinely believed the [Eurofighter] Typhoon offered the best capability now and in the future".
They also said it was "not beyond imagination" that India might decide the Rafale was not the right option as it continued the process.
Four other bidders had dropped out in the lengthy selection process