NEW DELHI/PARIS--The French-built Rafale emerged on Tuesday as preferred bidder in a $15 billion contest to supply India with 126 warplanes, lifting hopes for a sale that would boost France's national pride and restore the lustre of its aviation sector.
India's decision to enter exclusive talks with supplier Dassault Aviation also provides a welcome boost for President Nicolas Sarkozy, whose chances of being re-elected this year hinge partly on his credibility as a champion of French industry.
Developed over decades at huge expense, the Rafale is a powerful symbol of French technological prowess. Its sale to India over strong European rivals would be received as a victory for national prestige, as well as a commercial boon.
But Sarkozy, currently projected to lose an April-May presidential election, cannot claim credit too soon. Previous attempts to sell the Rafale have failed to produce firm deals. India has cancelled defence procurement decisions in the past.
"We've been waiting for this day for thirty years," Sarkozy told a news conference, referring to the launch of Rafale's development programme. Having "126 Rafales in the final phase (of talks) in India concerns more than aviation. It's a signal of confidence in the entire French economy."
While exclusive talks are not a guarantee of sale, they deal a probable knockout blow to Rafale's chief rival in India, the Eurofighter Typhoon, a fighter plane developed by a consortium of four European aviation companies--the German and Spanish branches of EADS, Britain's BAE Systems and Italy's Finmeccanica.
James Hardy, Asia Pacific specialist at IHS Jane's Defence Weekly said Dassault's poll position in India was a big blow for Eurofighter. "The Typhoon was widely tipped to be the favourite and had major political support from the big beasts of the Eurofighter nations," he said. "Both Germany and the U.K. invested a lot of time in pushing the Typhoon so this will hurt."
India rejected American, Russian and Swedish bids in April. India, which owns more than 50 French Mirage jets, has become the world's largest importer of weapons as it seeks to upgrade its largely Soviet-era navy and air force to counter the rising might of China and threats from Pakistan.
"The Rafale gives a huge combat edge to our air force given the situation in our region," said former Indian air force chief Fali Homi Major. "We cannot say what kind of conflict situation there would be in the region 20 years hence."
