In the wake of the Indian Rafale contract, French companies are forging links with Indian partners in order to meet offset commitments associated with the contract — 50% of the contract value of around $8bn must be placed with Indian companies. Such arrangements also serve to bolster the Make in India initiative of Prime Minister Narendra Modi.

Dassault Aviation has already identified Reliance Defence as a key partner for the Rafale offset programme, and the two companies are currently finalising the creation of a joint venture company.

At the Paris Air Show, Thales and Reliance Defence announced their intent to form an Indian joint venture with the proposed shareholding of 49% and 51%, respectively.

According to Thales, the JV will develop Indian capabilities to integrate and maintain radar and electronic warfare sensors. It will develop skills and activity in the Special Economic Zone of Mihan-Nagpur together with an Indian supply chain for the manufacturing of microwave technologies and high-performance airborne electronics.

Separately, Reliance Defence has signed an MoU with Daher Aerospace covering a strategic partnership in the design and development of aerospace components.

The two companies have agreed to jointly explore opportunities in design and manufacture of composite parts; design and build welded ducts, metal conduits, etc.