New Delhi: India and France on Monday signed a Memorandum of Understanding over the purchase of 36 Rafale jets. The deal, which was announced by Prime Minister Narendra Modi last year, had hit a roadblock over financial aspects.
“We are very happy that we have formed an agreement for purchase of 36 Rafale aircraft with France,” Modi said at a joint address with French President Francois Hollande after 13 agreements including the Rafale MoU were signed. “We will resolve the financial aspects soon,” Modi said.
“France and India have a strategic partnership of 18 years. We have a partnership branching out to various fields,” he added.
The purchase of the 36 Rafale jets from France would cost India around Rs 60,000 crore.
Talking about terror, Modi said, "From Paris to Pathankot, we saw the gruesome face of the common challenge of terrorism."
Modi also welcomed Hollande for the Republic Day celebrations. “I am honoured to welcome you as our guest for the Republic Day celebrations in Delhi… President Hollande is a very close friend of India.”
French President Francois Hollande, who is currently in India as chief guest for Republic Day celebrations, told media on his arrival that negotiations over the sale of Rafale jets are on the right track.
Hollande also noted that Indo-French cooperation in defence “is part of our strategic partnership. It is based on trust, a very strong trust between both our countries.”
French companies will invest $10 billion in India over the next five years, chiefly in the industrial sector, finance minister Michel Sapin said on Monday during a visit by President Francois Hollande to India.
"Over the last five years, French companies have invested more than $1 billion per year in India," Sapin said in a speech to the Federation of Indian Chambers of Commerce and Industry in New Delhi.
"We estimate that they will continue to invest at least $10 billion over the next five years."
Hollande, invited as guest of honour for India's Republic Day celebrations, hopes to seal an intergovernmental deal that would pave the way for the sale of 36 Rafale combat jets made by Dassault Aviation.
As part of that deal, there would be significant "offsets", or related French investments that Prime Minister Narendra Modi hopes will support his "Make in India" initiative to develop the manufacturing sector.
"The majority of these investments are meant for the industrial sector, which makes France the major player in Prime Minister Modi's 'Make in India' programme," Sapin said. 0 COMMENTS
