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All You Need To Know About The Rafale Deal Controversy

The fiasco that Congress is creating on the Rafale Deal is certainly not fair

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Rafale Deal is very important for both the countries involved i.e. India and France.
Rafale Deal is very important for both the countries involved i.e. India and France.

By Ruchika Verma 

  • Rafale Deal happened between India and France
  • The Rafale Deal is about the Rafale fighter jets
  • The deal is getting into controversies because of the allegations de by the opposition, especially Congress

Prime Minister Narendra Modi in April 2015 made the announcement that India will buy 36 French-manufactured Rafale fighter jets from Dassault, a French aircraft builder and integrator. This came to be known as Rafale Deal.

The Rafale deal of 36 Rafale aircrafts between India and France was called a “win-win partnership” for both the countries.

Prime Minister Narendra Modi finalised the Rafale Deal during his visit to France in 2015. (FILE PHOTO)
Prime Minister Narendra Modi finalised the Rafale Deal during his visit to France in 2015. (FILE PHOTO)

But recently it has come under attack of the Opposition, mainly the Indian National Congress, which has alleged that there have been irregularities in this deal and its proceedings. However, the government has denied and rejected all the charges.

The Rafale Deal is nothing new and was also signed during the time of UPA government. The first time it came to light was during the government of Atal Bihari Vajpayee where the original proposal was to buy 126 fighter jets.

After tests and negotiations in 2012, Rafale was considered L-1 bidder and negotiations started which only came to a conclusion as the Rafale Deal in 2015 under Prime Minister Modi’s government.

NDA government has got a better price on the Rafale Deal than the UPA governement.
NDA government has got a better price on the Rafale Deal than the UPA government.

Now the UPA alleging irregularities on NDA government doesn’t seem fair to many because no deal took place under their government. The transfer of technology was a primary issue of concern between the two sides. Dassault Aviation also tried to deny to take the responsibility of quality control of the production of 108 aircraft in India. The Dassault provided for 3 crore man-hours for production of the Rafale jets in India, HAL’s estimate was approximately 3 times higher which resulted in an escalation of costs in the manifold.

Also Read: Make in India: France to set up production centers for Rafale fighters

Prime Minister Modi’s visit to France in 2015 helped bring this deal to a final conclusion. The government-to-government deal of 36 jets was to completed as soon as possible.

On costs of the Rafale Deal, NDA government has said that it got better terms than those quoted in the original bid under the UPA government. The total savings are reported to be of more than 1600 million Euros. However, the cost breakdown of Rafale Deal in the original bid under UPA government and in the 36 aircraft in the NDA’s government-to-government deal is not available for the public domain.

The Rafale Deal involves no private party from the side of India. www.worldwide-military.com
The Rafale Deal involves no private party from the side of India. www.worldwide-military.com

Under the current agreement, the  Rafale Deals support the ‘Make In India’ initiative of the Indian Government through the IGA’s Article 12. It states that France will facilitate the implementation of ‘Make In India’. These critical design technologies were already discussed between the two governments in previous meetings. The present Rafale Deal is signed between two sovereign governments and there is no private individual, firm or entity involved in the process from the side of India. The procurement process also does not include any private company or firm from India.

Also Read: IAF’s Rafale Deal with France: India confirms order

The fiasco that Congress is creating on the Rafale Deal is certainly not fair as the NDA government has proved that their deal is better than the one which was undertaken during the UPA government.

 

Next Story

Are There Enough Jobs In Prime Minister Narendra Modi’s Led India?

“More young people are entering the labor force, millions want to leave agriculture but can’t find construction work because construction activity has slowed down because the investment rate in the economy has slowed down.”

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VOA
Modi’s Bharatiya Janata Party dismisses concerns about the job data saying it does not capture the real picture because it focuses only on the 15 percent of Indians who work in the formal economy. Pixabay

For people streaming in from rural areas around New Delhi, the first stop is a collection of busy city intersections where contractors select daily wage labor from the crowds of young and old waiting every morning to get work.

Many standing at these intersections say they get work for barely half the month. “I have the ability to work hard. I never turn down any work. But I would prefer to get a cleaner, permanent job,” says 29-year-old Tek Chand. “The problem is one day I have money to buy rations, the next day I don’t.” Like millions of others, he migrated from his village three years ago to seek work and a better life in the city.

FILE - Indian Prime Minister Narendra Modi, center, arrives with his cabinet colleagues on the opening day of the budget session of the Indian Parliament, in New Delhi, Jan. 31, 2019.
Indian Prime Minister Narendra Modi, center, arrives with his cabinet colleagues on the opening day of the budget session of the Indian Parliament, in New Delhi, Jan. 31, 2019. VOA
As India prepares for general elections on April 11, Prime Minister Narendra Modi is being attacked by opposition parties for failing to make good on a promise he made in 2014 to create millions of jobs for India’s huge young population. Modi’s Bharatiya Janata Party rebuts that criticism and says India is generating new opportunities as it becomes one of the world’s fastest growing major economies.

Job creation is a massive challenge for a nation with one of the world’s youngest populations — half the country’s 1.3 billion people are under the age of 25.

Recent data shows that joblessness has soared to record high levels. Opposition parties have made joblessness one of their principal election planks and have accused the prime minister of failing the estimated 8 to 10 million young people who enter the workforce every year.

The independent Mumbai-based Center for Monitoring Indian Economy estimates that unemployment reached 7.2 percent last month and that 11 million jobs were lost in 2018. With a working population of 500 million, that translates into more than 30 million people waiting for jobs. An unpublished official survey that showed unemployment at a 45-year-high has also been widely quoted by Indian media.

India's main opposition Congress party President Rahul Gandhi speaks during a public meeting at Adalaj in Gandhinagar, India, March 12, 2019.
India’s main opposition Congress party President Rahul Gandhi speaks during a public meeting at Adalaj in Gandhinagar, India, March 12, 2019. VOA

On the campaign trail, the head of the main opposition Congress Party, Rahul Gandhi, who is seen as Modi’s principal challenger, talks repeatedly about a “jobs crisis.”

“Our government is refusing to accept that we have a massive crisis and potential disaster in front of us,” Gandhi told a group of university students in New Delhi recently, many who will be first time voters.

Modi’s Bharatiya Janata Party dismisses concerns about the job data saying it does not capture the real picture because it focuses only on the 15 percent of Indians who work in the formal economy. It points to a recent industry report that jobs have been created in the medium and small sectors.

The BJP says millions of people have found work in the transport and infrastructure sectors or as delivery boys in booming online businesses as India becomes one of the world’s fastest growing major economies. They point out that the issue is not jobs but livelihoods, and point to millions of people who are not counted in job data.

They are self-employed people like cab owner Chain Pal Singh. As the app based taxi business boomed, Singh’s friend, who operated a cab, persuaded him to quit his job and take out a loan to buy a car. His decision has paid off — in four years he has earned enough money to invest in two more cabs.

Singh says he is much better off than when he held a job. “I used to earn about $225 dollars a month. Now in some months I can earn almost double that amount. Its beneficial for me.”

Following defeats in key state elections in December, Prime Minister Narendra Modi told parliament last month, “This truth has to be acknowledged. The unorganized sector has 80 to 85 percent of the employment.” He pointed to millions of commercial vehicles sold in recent years and questioned if they had not generated jobs for drivers.

Economists admit India’s large informal sector has made it difficult to calculate employment, but they say joblessness or underemployment remains the country’s biggest challenge. While scarcity of jobs is not a new problem, two disruptive economic steps in the last two years exacerbated the problem.

In 2016 a sweeping currency ban meant to tackle the problem of illegal cash, dried up jobs as it created huge currency shortages, particularly in small businesses and in the countryside. A poorly-implemented tax reform known as the Goods and Services Tax a few months later was another blow to businesses.

Meanwhile, Modi’s “Made in India” campaign, which aimed at making India a manufacturing hub like China, has made a slow start and sluggish labor-intensive sectors cannot cater to growing numbers of job seekers.

“We can’t keep patting ourselves on the back that we are the fastest growing economy specially if all these other indicators are not growing at a rate that will absorb the growing labor force,” says Santosh Mehrotra, a human development economist at the Jawaharlal Nehru University in New Delhi.

“More young people are entering the labor force, millions want to leave agriculture but can’t find construction work because construction activity has slowed down because the investment rate in the economy has slowed down.”

Also Read: The Mental Health ‘Epidemic’: About Six in Ten Teen Say, They Feel A Lot Of Pressure To Get Good Grades

He points out that exports, another sector that created a number of jobs has also not been performing well.

As the campaign heats up, the opposition will try to keep the spotlight on jobs, or lack of them, even as the BJP tries to focus on national security following a recent confrontation with Pakistan. The final verdict on whether to give Prime Minister Modi a second term in office will be delivered by millions of voters when they cast their ballots. (VOA)

One response to “Are There Enough Jobs In Prime Minister Narendra Modi’s Led India?”

  1. If the employment picture is bleak despite the construction of so many more Kilometers of roads, railways, air ports, bridges, toilets and other infrastructures compared to the five or even ten years of UPA government, imagine where we would be if we had UPA III government .