India, France ink purchase agreement for 36 Rafale fighters

A joint statement said Prime Minister Modi and President Hollande “welcomed the conclusion of the Inter-Governmental Agreement (IGA) on the acquisition of 36 Rafale fighter aircraft in flyaway condition, except for some financial issues… which they agreed must be resolved as soon as possible”.

“It was wonderful to be here and it felt lovely to see India celebrating her Republic Day and France joining in here as represented by our President”, a visiting French official said.

Modi has said he invited Hollande to India as a show of solidarity after the assault on the French capital, which killed 130 people and evoked memories of the even deadlier 2008 Islamist attacks on Mumbai.

The Indo-French talks focused on ways to enhance cooperation in counter-terrorism, security, civil nuclear energy and sustainable development. The two leaders jointly launched the ISA at the Paris Climate Change summit. Modi further said: “We want to work closely with France”. Hollande is on a three-day visit to India. The French president also indicated that an agreement for France’s Areva to build six nuclear reactors in India should be hastened and concluded within a year.

Thousands gathered in New Delhi amid tight security Tuesday for India’s annual Republic Day parade, a pomp-filled spectacle of military might featuring camels and daredevil stunt riders, with French President Francois Hollande the chief guest. Modi announced India’s intention to buy the Rafale jets, manufactured by Dassault Aviation, during a visit to Paris in April, touching off several rounds of negotiations over the price and details such as servicing.

“France has the resources and capability and we have the need, the market and low-priced manufacturing”.

During French President Francois Hollande’s India visit to attend the Republic day celebrations, he spoke to Prime Minister Narendra Modi about various defence and trade related deals. But persisting differences over price of the aircraft prevented India and France from signing the agreement, although they noted progress in the negotiations in a memorandum of understanding.

The two countries have pitched in to ameliorate the infrastructural facilities in India through new railway projects, rejuvenation of rivers, and the upgrading of locomotives and their stations.

French companies will invest $10 billion in India over the next five years, chiefly in the industrial sector, Finance Minister Michel Sapin said earlier on Monday in New Delhi.