Falcon 2000 business jets will now be made in India: Anil Ambani’s partnership with French company, will be made outside France for the first time

Anil Ambani’s company Reliance Aerostructure Limited has signed a deal with French company Dassault Aviation to make Falcon 2000 business jets in India. This will be the first time that Dassault will make its Falcon jets outside France. This deal has been announced at the Paris Airshow.

Reliance Aerostructure is a subsidiary of Reliance Infrastructure. Dassault Reliance Aerospace Limited was started in 2017 as a joint venture between Reliance and Dassault. In this new partnership, the major production process of Falcon 2000 will be transferred to DRAL.

Falcon 9 jet will be produced in Maharashtra

The jet will be produced at Reliance’s Dassault Reliance Aerospace Limited (DRAL) plant in Nagpur, Maharashtra. This is the same facility which has been making some parts of Falcon 2000 since 2019. Now the entire jet will be made here. This is a big step for India’s Make in India mission. The first jet will be delivered in 2028.

The deal will have 3 major benefits:

• Jobs and growth: This project will create thousands of jobs, especially in Maharashtra. Also, Indian suppliers and SMEs (small-medium businesses) will also get a boost.
• Make in India: This deal supports the Make in India and Atmanirbhar Bharat missions of the Government of India. Reliance claims that the jets will have more than 50% Indian components.
• Technology transfer: Dassault will share its technology and knowledge in India, which will benefit Indian engineers and technicians.

Reliance’s hold in the aerospace sector will be strengthened

This is the fourth major global partnership of Reliance Infrastructure. Earlier:

• Worked with Dassault Aviation for Rafale fighter jets.
• Made defense equipment with France’s Thales Group and Germany’s Rheinmetall.
• Recently, a deal of ₹10,000 crore was signed with Deal Defense (Germany), in which Vulcano 155mm precision munitions will be made in Ratnagiri.
• This new deal will further strengthen Reliance’s hold in the defense and aerospace sector. After the news came, the share of Reliance Infrastructure has risen 5% to ₹386.05.

Dassault CEO said – our supply chain will be strengthened

Dassault Chairman and CEO Eric Trappier said, “Manufacturing Falcon 2000 in India is a big step to strengthen our supply chain. It supports Make in India and will make India a global aerospace hub.” India is a big market for Dassault Aviation. The company is already supplying Rafale fighter jets in India, and now the production of Falcon 2000 is a strategic move for them.

Three big challenges for Reliance

• Timeline: Starting production and ensuring delivery by 2028 is a big challenge. A lot of work will have to be done on supply chain, skilled workforce, and quality control.
• Competition: In the global market, Falcon 2000 will compete with brands like Gulfstream and Bombardier. Manufacturing in India will reduce the cost, but it is important to maintain the quality.
• Political risk: There was controversy earlier regarding the Rafale deal between Reliance and Dassault. Some people may raise questions on this deal as well.