Latest Indian, French Rafale deal runs into problems - sources

India's order of 36 French-made Rafale fighter jets has run into trouble with government officials struggling to agree sales terms, sources said, four months after Prime Minister Narendra Modi intervened to break a logjam in previous commercial negotiations.

Two senior Indian defence officials told Reuters that both sides were wrangling over the unit price of the aircraft and a condition that planemaker Dassault Aviation invest a big percentage of the value of the multi-billion dollar contract in India.

The problems threaten to further delay the modernisation of India's ageing air force.

Read more