After months of talk, India has signed an inter-government deal with France to purchase 36 Rafale fighter jets. However, work remained to be done on the finalization of financial terms of the agreement.
According to BBC, The deal, estimated $9 billion, was the focal point of the French President Francois Hollande three-day visit to India, who was invited as guest of honour for India’s Republic Day parade.
"We have completed an inter-governmental agreement for the purchase of 36 Rafales, with the exception of the financial aspects," Indian Prime Minister Narendra Modi said after meeting Mr Hollande.
The French Premier described the Rafale deal as "a decisive step", stating: "There remain financial issues which will be sorted out in a couple of days."
According to Reuters, Mr Hollande said the two sides also hoped to conclude agreement within a year on a French nuclear company building six nuclear reactors for India.
According to the Hindustan Times, India is seeking to upgrade its mostly Soviet-era military equipment, as it looks to inject some $150bn into the military makeover.
India had trimmed its initial plan to buy 126 Rafale jets, to meet its air force needs, as it faces an assertive China and rival Pakistan.However, Hollande and Modi stepped into the deal last year, ordering government-to-government talks after commercial negotiations with the aircraft manufacturer Dassault Aviation were unfruitful.
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