India nears deal to buy 36 Rafale fighter jets from France

A senior French official told reporters on Sunday the two sides were still haggling over the price, which experts say could reach around €5 billion (US$5.6 billion).

Hollande described the deal on Rafale as “a decisive step”, adding: “There remain financial issues which will be sorted out in a couple of days”.

“My visit has 2 main goals-Consolidate strategic partnership with India and implement decisions taken during PM Modi’s visit to my state”, Hollande said.

“India needs them and France has shown that it has the world’s best aircraft”.

In other business, France’s Alstom signed a pact with Indian Railways to make 800 locomotives in India, a boost for Modi’s drive to build a domestic industrial base and provide jobs to a growing workforce.

Modi had first announced India’s desire to buy 36 Rafale combat planes for its air force back in April a year ago during his visit to Paris. He said further discussions were needed on a prior inter-governmental agreement.

Hollande will hold talks with Indian leaders in New Delhi on Monday and be a guest of honor on Tuesday at India’s Republic Day parade, celebrating 66 years since the country adopted its constitution.

The French President said the talks with regard to the almost Rs. 60,000 crore Rafale deal was progressing.

“Getting to the economic deliberations… both leaders interact with the Indo-French CEO forum”.

Hollande, who arrived in India yesterday, will also lay the foundation stone of the headquarters of ISA, which is aimed at increasing utilisation and promotion of solar energy in solar-rich nations.

“The initial projects must begin quickly”, Hollande said on Monday.

Security will be high on the agenda after deadly Islamist attacks in Paris in November that evoked memories of the 2008 Mumbai attacks, which left 166 people dead.

“President Hollande and I have agreed to scale up the range of our counter-terrorism cooperation in a manner that helps us to tangibly mitigate and reduce the threat of extremism and terrorism to our societies”, he said. US President Barack Obama was last year’s chief guest.