India, on Tuesday, issued a letter to French defence major Dassault informing it that it was the lowest bidder in the tender and would be offered the multi-billion dollar contract for 126 Medium-Multi-Role Combat Aircraft (MMRCA).
"Although this is not yet a contract signature and contract negotiations are still ahead, we are disappointed.
However, we respect the decision of the Indian defence Ministry," EADS Cassidian -- the makers of the Eurofighter Typhoon aircraft said in a release.
The company said that with the Eurofighter Typhoon, it had offered the most modern combat aircraft available to the IAF.
"Based on the Indian Government feedback, we will now carefully analyse and evaluate this situation together with our European partner companies and their respective governments," it said.
Eurofighter Typhoon is manufactured by a four-nation consortium including the UK, Germany, Spain and Italy and all four governments were backing the bid in the Indian tender.