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5bn euros in arrears, 36 Rafale deliveries, India starts 'dirty tricks': - www.deekpay.com

　　India purchased 36 Rafale F3 fighter jets from France in 2016 for €7,878 million, an order that attracted widespread attention for its high price tag. According to the article, here is an analysis of the event:

　　1. **Price controversy**: India initially won the Rafale fighter jet tender at a low price, which was later rejected by the Government of India. A few years later, India re-procured them at a higher price, and despite the Government of India's explanation of the price allocation, the scepticism has never disappeared.

　　2. **Payment issues**: India has begun to delay payment for the goods after having paid some 2.7 billion euros and has made a request to pay for the goods in Indian rupees. This indicates that India may intend to renege on its debt, but it is still unknown whether France will accept this condition.

　　3. **Delivery schedule**: The agreement between France and India called for France to deliver the first Rafale within 36 months of signing the contract and to complete the entire order within 66 months. India paid 151 TP3T on delivery of the first fighters, with subsequent payments made in accordance with the pace of delivery.

　　4. **India's strategy**: India will attempt to offset the cost of the purchase of the aircraft in kind from 2021 onwards, and will further delay payment or require payment in rupees after the delivery of all 36 Rafales.

　　5. **Technical support**: Modern fighter aircraft are highly complex and require continuous technical support and maintenance. India's limited aerospace industry is not capable of doing this on its own, so it may ultimately have to rely on French technical support.

　　6. **India's dilemma**: India appears to have received 36 Rafales, but in reality it does not have much of a leg to stand on. Failure by India to pay the remaining balance could jeopardise the delivery of additional orders from France, such as the naval version of the Rafale-M.

　　7. **Historical case**: The United States Government has frozen exports of F-16s to Pakistan and addressed the issue of payments already made, demonstrating that there are some debts that cannot be repudiated.

　　8. **Price analysis**: The normal price of 36 Rafales is roughly 5 billion euros, and the overpayment by India is divided into three main parts: the cost of adapting the environment in which they will be used in India, India's special needs, and the issue of fraud and bribery in India's military acquisitions.

　　Overall, India's delayed payment strategy in the Rafale procurement is likely to be more costly, while France is likely to be able to use the funds already paid and India's dependence to manoeuvre against India.