Looking to slash prices of 36 Rafale aircrafts

“We are very happy that we have formed an agreement for purchase of 36 Rafale aircraft with France”, PM said, adding that there are “some financial issues” that shall be sorted very soon.

Caption + French President Francois Hollande, left, and Indian Prime Minister Narendra Modi shake hands as they pose before the start of a delegation level meeting in New Delhi, India, Monday, Jan. 25, 2016. Apart from the Rafale deal which costs Rs 60,000 cr to India, both the countries made a decision to fight terrorism jointly.

“We have completed an inter-governmental agreement for the purchase of 36 Rafales, with the exception of the financial aspects”, Mr Modi said after meeting Hollande. At the time, he announced plans to buy jets directly from the French government to meet the urgent requirements of the Indian Air Force. Prime Minister Narendra Modi hopes that related French investments under the deal will support his “Make in India” initiative to develop the manufacturing sector. “They are provoking us in the worst possible manner”, said Mr Hollande, who is in India as the chief guest at India’s Republic Day parade today. Modi and Hollande praised each other after the signing of 14 agreements.

India and France came out with a joint statement which talked about the need for “all countries to effectively deal with terrorism emanating from their territory or territories under their control”.

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

Modi and Hollande will hold formal talks at the Indian premier’s office before laying a foundation stone at the new headquarters of the International Solar Alliance, a 121-nation group launched by Modi at the Paris COP21 conference in November to expand affordable solar power. He once again assured the top Indian leadership that France would take every necessary step to bolster ties with India. “On board the Metro, headed to Gurgaon”, the tweet said.

Modern tanks and missile systems alongside desert camel units and daredevil stuntwomen paraded down a central avenue near the presidential palace in New Delhi on Tuesday to celebrate modern India’s adoption of a constitution in 1950, amid tight security over concern terror could strike.