France’s Dassault has been awarded frontrunner status in the hotly contested $20bn race to supply 126 fighter jets to India, providing a much-needed boost for French economic and industrial prestige.

The Indian government said the French Rafale fighter jet had beaten the four-nation Eurofighter Typhoon to become preferred bidder to equip India with the multi-role fighter jets in one of the world’s largest military contracts. Dassault now enters exclusive talks with the Indian government.

The contract, estimated to be worth $15bn-$20bn, will help shape India’s air power for the next three decades and serve as the bedrock of a strategic partnership. It also has the potential to reinvigorate the French defence industry at a time when military budgets are being slashed across Europe.