Dassault could not progress in the negotiations with HAL because if the aircraft were to be produced in India, a guarantee for the product to be produced was to be given. It is a big ticket item, and the IAF would want the guarantee for the jets. HAL was in no position to give the guarantee.

I am saying this with a certain sense of confidence and not arrogance. The defence ministry is being run without any middleman and in a transparent way. We have proved that defence procurement can happen without middlemen.

Even during negotiation with HAL, Dassault felt that the cost with which the HAL will produce will be far higher than the aircraft produced in France. That was the reality.

Nirmala Sitharaman Quotes