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Narendra Modi to hold talks with Hollande India, France sign Rafale agreement: Modi
(about 4 hours later)
French President Francois Hollande is set to meet Indian Prime Minister Narendra Modi, with talks likely to be dominated by negotiations over a major fighter jet deal. India has signed a deal with France to purchase 36 Rafale fighter jets, Indian Prime Minister Narendra Modi said.
Mr Modi announced the purchase of 36 Rafale jets from France last April. The announcement about the inter-governmental agreement followed Mr Modi's talks with French President Francois Hollande in Delhi.
But terms and conditions have still not been agreed and reports say the two sides are still negotiating the price. Mr Modi said the two countries would work to sort out financial issues on the deal.
Mr Hollande is in India for three days, and will be the chief guest at the country's Republic Day celebrations.Mr Hollande is in India for three days, and will be the chief guest at the country's Republic Day celebrations.
India is looking to modernise its aging Soviet-era military and the deal is the fruition of years of negotiation, with India intent on buying 126 jets in total for an estimated cost of $12bn (£8.2bn). "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 Mr Hollande.
India is looking to modernise its ageing Soviet-era military and the deal is the fruition of years of negotiation, with India intent on buying 126 jets in total for an estimated cost of $12bn (£8.2bn).
Correspondents say this is one of the world's biggest defence deals.Correspondents say this is one of the world's biggest defence deals.
Mr Hollande told the Press Trust of India news agency that it might take some more time to sign the deal. Mr Modi announced the purchase of 36 Rafale jets from France last April.
"Agreeing on the technicalities of this arrangement obviously takes time, but we are on the right track," he said. The two sides signed 13 agreements on Monday, including those on space cooperation, science and technology and the renovation of railway stations in India.
Mr Hollande is also expected to discuss ways to increase security and intelligence cooperation during his talks with Mr Modi. The Reuters news agency quoted Mr Hollande as saying that the two sides also hoped to conclude agreement within a year on a French nuclear company building six nuclear reactors for India.
The two leaders also discussed ways to increase security and intelligence cooperation.
"France and India are two great democracies... therefore we are prime targets for terrorists who cannot abide liberty, democracy or culture. We must therefore cooperate more on security," Mr Hollande said on Sunday."France and India are two great democracies... therefore we are prime targets for terrorists who cannot abide liberty, democracy or culture. We must therefore cooperate more on security," Mr Hollande said on Sunday.
After their talks in Delhi, the two leaders will lay a foundation stone at the new headquarters of the International Solar Alliance, a 121-nation group launched by Mr Modi at the Paris climate summit in November to expand affordable solar power. On Monday, the two leaders will lay a foundation stone at the new headquarters of the International Solar Alliance, a 121-nation group launched by Mr Modi at the Paris climate summit in November to expand affordable solar power.
Mr Hollande landed in the northern city of Chandigarh on Sunday where Mr Modi joined him at official engagements and lauded France's decision to invest $1bn every year in India in various sectors.Mr Hollande landed in the northern city of Chandigarh on Sunday where Mr Modi joined him at official engagements and lauded France's decision to invest $1bn every year in India in various sectors.
Reports say that Mr Hollande will also try to kickstart negotiations on a plan for a French nuclear company to build six reactors in India.
The talks have been stuck over the price of the deal, according to Reuters news agency.
The two leaders are also expected to announce a pact between the space agencies of the two countries, for a joint satellite dedicated to climate change research.