India and France on January 25 signed a Memorandum of Understanding towards an Inter-governmental agreement (IGA) over the purchase of 36 Rafale jets from Dassault Aviation. The deal, announced in April by Prime Minsiter Narendra Modi, has been in limbo after negotiations hit a roadblock over price issues. The purchase of the 36 Rafale jets from France would cost India around Rs 60,000 crore. Indo-French cooperation in defence is part of strategic partnership. It is based on trust, a very strong trust between both countries. The purchase of jets will boost the Indian Air Force assets and provide India with a strategic edge over neighbours. However, some “financial issues” regarding deal are yet to be sorted between both the countries.

Background:-

French President Francois Hollande visited India as chief guest for the 67th Republic Day. Hollande visited Chandigarh on Sunday. Prime Minister Narendra Modi has been to France twice in 2015, on a bilateral visit in April and for the Climate Change Summit in November.

What else??

• Apart from the multibillion-euro jet deal, Indian-French contacts have intensified over climate change and counterterrorism.
• Prime Minister Modi is said to have intensely watched France’s handing of the terrorist attacks in Paris last year, while President Hollande condemned the assault on an Indian air base over the New Year’s holiday weekend by suspected militants from Pakistan.
• The two leaders also advanced their initiative on alternative energy announced during the recent climate summit in Paris: the International Solar Alliance, which is intended to increase the use of solar energy in developing nations.

Bolster Your Knowledge Base

Limbo means an uncertain period of awaiting a decision or resolution; an intermediate state or condition
Intensified means boost, increase or strengthen
Condemned means express complete disapproval of; censure or criticise