I'm french and, honestly, sometimes i don't understand our own logic. I remember when the contract for 126 aircraft was announced, they labeled it, "le contrat du siècle" ( the contract of the century). We were in 2012 and Rafale had won the MRCA in India. Dassault had so much trouble saling its aircraft and this first contract was just amazing so everyone considered it a flawless victory. It reminds me the aborted sale in Brazil where we were supposed to have a firm order. Ultimately, Brazil ordered Gripens...
In indian case, it seems that there were problems in negociations between french and indians manufacturers. Most of the 126 aircraft were supposed to be built in India. It seems that Dassault faced difficulties to build a working production line for the aircraft in India.