Wednesday, 27 March 2013

Study of an arms deal: why India favours the Rafale




With the recent news that the negotiations on the adoption of the Rafale as India's MMF (Medium Multi-role Fighter) are moving ahead again, it’s worth asking what considerations might have influenced India's decision-making. Especially considering that the MMF tender is also the largest arms deal of the largest democracy in the world.

Ultimately governments make purchase decisions about multi-million dollar military hardware pretty much the same way that you or I might choose a mobile phone provider or car insurance. Essentially it all boils down to 4 things: performance, cost, customer service and trust.


1. Performance

Q: Does the product meet (or exceed) your requirements?

Let’s start by comparing the two finalists in the Indian MMF tender: the Dassault Rafale (France) and the EADS Eurofighter Typhoon (UK, Germany, Spain and Italy). (I’ll get to the eliminated offerings from the US later on.)

Both the Typhoon and Rafale are delta winged, multi-roled, fourth generation fighters (France was originally part of the Eurofighter programme) designed in the late 70's. To a layman, both aircraft are very similar, but the devil is in the detail.

The Eurofighter arguably has the edge in BVR and WVR (Beyond Visual Range and Within Visual Range) air-to-air engagement capabilities. However this does not play in its favour in terms of the Indian tender as the Indians already have a superb air-to-air machine in the form of the Russian Su-30 MIK (reportedly more advanced than the Su-35 Flanker-E in operation in the Russian air force).  


Where the Rafale has the upper hand is that it is considered to be an Omni-role fighter rather than the Multi-role Typhoon. It means that the aircraft was designed to perform various missions at the same time. Multi-role aircraft can be outfitted for various missions but often can only conduct one or two at a time. During the Libyan bombing campaign, the French operated Rafales in pairs, switching from observation to strike to aerial area denial at a moment’s notice. Whereas UK Royal Air Force often deployed 2 types of aircraft simultaneously, the Rafale means that you can perform the same missions with half the number of aircraft. 

Other advantages include a navalised version of the Rafale already in operation in the French navy (important to the Indians, who want to develop their own aircraft carriers), the ability to carry AM 39 Exocet anti-ship missiles as well as nuclear cruise missiles and finally the fact that the Rafale is compatible with French-made munitions already in use in the Indian Air Force on their Mirages (the predecessor of the Rafale), greatly simplifying logistics.

2. Cost

Q: Does the product offer good value for money?

It’s been suggested that the Rafale is being offered 5 to 6 million dollars per unit cheaper than the Typhoon. Were that the case, it’s rumoured that Dassault would effectively be foregoing any profit on the deal. If so, the price would be unbeatable.


3. Customer service

Q: How good is the after-sales service?


Germany (one of the 4 partner countries developing the Eurofighter) has been a more important aviation partner for India, helping to develop a native helicopter programme in recent years. Germany's standing is also helped by the fact that many members of India’s ruling class have been educated there and the German political model is often drawn for inspiration in India. However recent German flakiness in terms of technology transfers - and the ever-looming constraint that German law requires them to cease the supply of weapons and spares to their partners if they were to engage in a war - make Germany too unreliable a defence partner in the eyes of the Indians. 


Conversely France and Russia (India’s premier defence partner) have the advantage of not being subject to national or international arms embargoes when dealing with other states, so the supply chain would almost always be guaranteed. 

4. Trust

Q: Do you trust the product (or rather the people who make it)?  


As with consumer goods, trust is largely earned by getting (1) to (3) right. But trust also comes down to more intangible factors – in particular strength of relationship and political will.    

In this context, the Eurofighter is a thorny proposition for the Indians. It is built by a conglomerate of four nations, each with their own separate foreign policies and arms trade laws. Italy and Spain have never sold anything major to India, military-wise. Britain recently sold a batch of training aircraft to India, but the last combat aircraft sold to India was the Jaguar in the 70s. And that was developed 50/50 with France, so Britain and France share the credit for that. 

Here again the Rafale has the edge. The Indian air force has been using French aircraft since the 1950s and since then it has been involved in four major conflicts. The Indians have found the French to be particularly accommodating in terms of logistics and technology transfers – especially when they asked them to help modify their Mirages for use with Russian- and Israeli-made munitions in 1999.

It is this solid trust (or lack thereof) that eliminated the US offerings very quickly. Other than the fact that the American F16s and F/A 18s were not as advanced as their European rivals, the US has been supplying Pakistan (India's perennial enemy). It is also a well known fact that the US sold "incomplete" F16s to Pakistan (they lacked advanced radar), both of these  factors making the US an unreliable partner in the eyes of India. 

In the end, it’s probably trust that will have tipped the balance in France’s favour. A neat reminder that, like consumers, arms buyers want to have warm and cuddly feelings too.

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