MMRCA Cancellation and Rafale Acquisition A Costly "Blunder", Hindered ToT and Defence Industrial Growth, Says Former Air Marshal

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A former Indian Air Marshal has sharply criticized the decision to scrap the 126-aircraft Medium Multi-Role Combat Aircraft (MMRCA) deal and opt for a smaller purchase of 36 Rafale jets in flyaway condition.

Air Marshal M. Matheswaran (retired), who oversaw the MMRCA tendering process, argues that this move was a costly mistake that hindered technology transfer and industrial growth in India.

The MMRCA saga began in 2007 and spanned nearly 15 years of evaluations, negotiations, and shortlisting. Six contenders were rigorously tested in diverse Indian terrains and climates before the Rafale was identified as the lowest bidder.

However, Dassault Aviation, the manufacturer of the Rafale, expressed reluctance to adhere to the original tender's technology transfer and offsets clauses, particularly regarding the involvement of Hindustan Aeronautics Limited (HAL) in manufacturing 108 of the aircraft. This ultimately led to the scrapping of the deal in 2016 and the subsequent purchase of 36 Rafales in flyaway condition.

Air Marshal Matheswaran believes that cancelling the MMRCA deal was a "blunder" that deprived India of significant benefits. He argues that the deal would have brought world-class manufacturing facilities and skill development to India. He criticizes Dassault's reluctance to transfer technology and suggests that India should have dealt with it more firmly.

The acquisition of 36 Rafales, while addressing an immediate operational need for the IAF, did not provide the long-term industrial and technological benefits that the MMRCA deal promised. Air Marshal Matheswaran contends that this smaller purchase was not only expensive but also failed to boost the Indian defence industry.

He advocates for high-value defence contracts to be conducted on a government-to-government basis, keeping national interests paramount. He suggests that India should negotiate with multiple countries simultaneously to maximize leverage and prioritize those willing to transfer technology and manufacture in India.

Despite acquiring 36 Rafales, the IAF continues to face a shortage of fighter squadrons. The ongoing Medium Role Fighter Aircraft (MRFA) competition aims to address this shortfall, but it has faced delays.
 

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