Ten days after India and France signed the landmark purchase agreement for 36 Rafale fighters for the Indian Air Force, Dassault Aviation Chairman & CEO Eric Trappier and Reliance Group Chairman Anil Dhirubhai Ambani have announced the creation of a Joint Venture in India.

The new JV, called Dassault Reliance Aerospace, will play a key role in executing offset obligations linked to the Rafale deal. The Rafale purchase agreement includes a 50% offset obligation which is the largest ever offset contract in the history of India.

The JV will also support Prime Minister Modi’s “Make in India” and “Skill India” policies with a view to developing “major Indian programmes with high levels of technology transfer to benefit the entire aerospace sector”.

The proposed strategic partnership between Dassault and Reliance will also focus on promoting Research and development projects under the Indigenously Designed, Developed and Manufactured (IDDM) programme, a new initiative of Indian defence minister Manohar Parrikar.

Reliance is a Mumbai-based conglomerate with interests in telecommunications, power, infrastructure, financial services, and media and entertainment.