Indian Govt Suggested Reliance as Partner in Rafale Deal, Hollande Tells French Website
New Delhi: The Indian government is the one that suggested Anil Ambani’s Reliance Defence as a service provider for the Rafale deal, former French president Francois Hollande has said in remarks made to Mediapart, a Paris-based investigative news website.
If Hollande’s statements are correct, it would sharply contradict the line taken by the Modi government over the 36-aircraft contract.
Senior government officials have maintained that the process of choosing Reliance Defence as an offset partner for the Rafale deal was a purely commercial decision that was driven by Dassault Aviation.
In a statement put out on Friday evening, the defence ministry said that the Mediarpart report was “being verified” and that “it is reiterated that neither GoI nor French Govt had any say in the commercial decision”.
Mediapart, which published its story on Friday on the Rafale controversy, asks Hollande about the arrangement between Dassault Aviation and Reliance.
Hollande was the French president when the intergovernmental agreement between France and India for 36 aircraft was announced by Modi in April 2015. While the story is behind a paywall in French, The Wire accessed, translated and is publishing the relevant parts below.
The interviewer asks Hollande: “How and by whom was the latter [Reliance] selected? (Comment et par qui ce dernier a-t-il été sélectionné?)”
The former president replies: “We didn’t have a word to say about that subject. The Indian government suggested this service provider and Dassault negotiated with Ambani. We didn’t have a choice, we picked the interlocutor (/contact person) which was selected for us. This is why, moreover, this group had no interest in granting me any special privileges (or thanks)”. [Emphasis added by The Wire].
The French version is:
Nous n’avions pas notre mot à dire à ce sujet. C’est le gouvernement indien qui a proposé ce groupe de service, et Dassault qui a négocié avec Ambani. Nous n’avons pas eu le choix, nous avons pris l’interlocuteur qui nous a été donné. C’est pourquoi, par ailleurs, ce groupe n’avait pas à me faire quelque grâce de quoi que ce soit. Je ne pouvais même pas imaginer qu’il y avait un quelconque lien avec un film de Julie Gayet .
One persistent strain of criticism in the Rafale controversy, over the last few months, has been the inclusion of Reliance Defence — which at the time of its selection as an offset partner was a fledgling company, having been incorporated just a little before the defence contract was announced by Prime Minister Narendra Modi in April 2015. Opposition parties like the Congress in particular have used this point to raise allegations of crony capitalism.
The decision to go with a smaller purchase and the selection of Anil Ambani’s Reliance, presumably by Dassault Aviation, has also sparked criticism because its inclusion came with the dropping of Hindustan Aeronautics Ltd (HAL) as a co-production partner for a larger 126-jet deal.
The Modi government has staunchly maintained that it had nothing to do with Dassault Aviation choosing Reliance. A month ago, finance minister Arun Jaitley specifically laid this out, noting that under the offset policy, any original equipment manufacturer can “select any number of Indian partners”.
“This has nothing to do with the Government of India and, therefore, any private industry having benefitted from the Government of India is a complete lie. Can Shri Gandhi and his Party deny this?” Jaitley said.
For her part, defence minister Nirmala Sitharaman has maintained that she doesn’t officially know who Dassault Aviation’s offset partner is. “I have not got to know who is Dassault’s offset partner… It is a commercial decision. There are laid down procedure to check the process of fulfilment of offset obligations. Neither I can accept, nor I can suggest, nor I can reject anybody from going with anybody,” she said last week.
Hollande’s new remarks, therefore, cast a shadow of doubt on this defence.
The Wire has asked Reliance Defence, Dassault Aviation and the French embassy in New Delhi for their comments and this story will be updated if and when a response is received.
Courtesy: thewire.in
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
RBI keeps policy rate unchanged amid inflationary pressure
Mumbai (PTI): The Reserve Bank on Wednesday expectedly kept interest rates unchanged amid hopes of a global recovery on the back of ceasefire in the six-week-long US/Israel-Iran conflict.
The policy decision comes as a month and a-half-long West Asia conflict has disrupted energy supplies, shot up crude oil prices and created fiscal and inflationary pressures for import-dependent nations like India.
This is the first monetary policy review after the government announced a fresh inflation target for the RBI last month. The government has asked the RBI to maintain retail inflation at 4 per cent with a margin of 2 per cent on either side for another five years ending March 2031.
Announcing the first bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has unanimously decided to retain short-term lending rate or repo rate at 5.25 per cent with a neutral stance.
The rate cut pause comes on the back of the consumer price index (CPI) based headline retail inflation that moved closer to the RBI's medium-term target of 4 per cent at 3.21 per cent in February.
Additionally, the rupee has depreciated by over 4 per cent since the war, which has consequences for pushing up import inflation.
However, the rupee has appreciated by 50 paise to 92.56 against US dollar following announcement of the ceasefire by the US and Iran.
Based on the recommendation of the MPC, the RBI reduced the repo rate by 25 bps each in February, April, and December 2025 and 50 basis points in June amidst easing retail inflation.
India's retail inflation dropped to a historic low of 0.25 per cent in October 2025, marking the lowest level since the Consumer Price Index (CPI) series was introduced.
However, the rupee declined to historic low and crossed 95 against a dollar last month making imports costlier, raising fears of rise in inflation. Rupee touched a record low of 95.21 on March 30, 2026.
