On his part, Hollande said: “We signed an inter-governmental agreement (IGA) on Rafale deal”.
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“Dassault Aviation is very pleased with this progress, and is actively supporting French authorities in their efforts to finalise a complete agreement within the next four weeks”.
“Over the last five years, French companies have invested more than $1 billion per year in India”, Sapin said at the India-France business session organised by industry association Ficci. “We have made a decision to strengthen our cooperation against terror”, Hollande said referring to the massive terrorist attack on Paris in November.
With hectic negotiations still going on the “complex” Rafale deal, sources said nothing could be finalised during Hollande’s visit since the two sides could not agree on the pricing of the planes.
“A special train was arranged to facilitate movement of PM and French President in close coordination with security agencies today”, Metro chief spokesperson Anuj Dayal said.
The Indian deal is a major boost for Dassault, which a year ago secured orders for 24 Rafales each from Egypt and Qatar.
Hollande’s visit has, however, given impetus to other deals, including one for the French-based Airbus consortium to build military helicopters with India’s Mahindra group.
The invitation for Hollande to be chief guest at India’s Republic Day military parade on Tuesday had raised expectations the multi-billion dollar agreement for the Rafale jets would finally be sealed. 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 focus of Hollande’s visit has, unsurprisingly, been the strategic partnership, extended to defence and security, and counter-terrorism.
“India needs them and France has shown that it has the world’s best aircraft”.
“France has the resources and capability and we have the need, the market and low-priced manufacturing”.
“From nuclear cooperation to railway locomotives, we are sowing the seeds of an ever-tightening web of cooperation between our two countries, ” Modi said.
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The parade ended with spectacular displays by fighter jets of the Air Force, and the presidential bodyguards escorted the Indian president and his French counterpart back to Rashtrapati Bhawan.
