This is incorrect. You are mixing two separate (but related) things. Under the terms of the original Rafale deal[1], HAL was supposed to manufacture/assemble R

This is incorrect. You are mixing two separate (but related) things. Under the terms of the original Rafale deal[1], HAL was supposed to manufacture/assemble Rafale aircraft in India. This deal never materialized. A new deal was made under whose terms, Dassault and others were to supply 36 Rafale aircraft in fly-away condition in return to which, they were to invest 50% of the cost of the deal (or about €3.9 billion) back in India, under an offset clause. Of this €3.9 billion, €100 million was awarded [2] to Dassault Reliance Aviation limited as an offset contract to manufacture components for a passenger aircraft (Dassault Falcon 2000). This was a decision by Dassault, not the Government of India. There were about 30 offset partners among which Reliance was one. This contract was worth about 3% of the entire investment under the offset clause. So Reliance was not "chosen over" HAL. [1] https://en.wikipedia.org/wiki/Indian_MRCA_competition https://en.wikipedia.org/wiki/Indian_MRCA_competition [2] https://en.wikipedia.org/wiki/Rafale_deal_controversy https://en.wikipedia.org/wiki/Rafale_deal_controversy