He mocked the BJP-led government, claiming that although the Rafale jets were imported from abroad, they remain parked in hangars, adorned with chilies and lemons.
The deal had been worth about $500 million and illustrated strengthening ties between Israel and India.
The company, which manufactures defence products in a joint venture with Israeli defence firm Rafael Advanced Defense Systems, will showcase jet engines at the upcoming Aero India 2017, said Chairman Baba Kalyani.
A survey by Transparency International UK says Indian companies, especially those that have been in the field for quite a few years need to do much more.
India has decided to buy 36 Rafale fighter jets in flyaway condition from France after Modi and French President Francois Hollande on Friday agreed to conclude an Inter-Governmental Agreement bypassing the protracted negotiations for purchase of 126 such jets.