Francois Hollande in India, says deal on Rafales ‘on right track’

French President Francois Hollande, beginning a three-day visit to India Sunday in Le Corbusier’s city, signalled while the Rafale fighter jet deal was “on the right track”, further talks were needed and no contract would be signed immediately. In an interview to PTI, Mr Hollande said “agreeing on the technicalities of this arrangement obviously takes time”. A French official confirmed the discussions were stuck over the price.

One sticking point is New Delhi’s insistence that arms makers invest a percentage of the value of any major deal in India, known as the “offset clause”. Mr Hollande, on his second official visit to India, was greeted by Prime Minister Narendra Modi with a hug, after which the two strolled through Chandigarh’s famed Rock Garden, before addressing CEOs at a business conference.

A total of 16 agreements were signed Sunday in the two leaders’ presence. Mr Modi said he invited Mr Hollande in a show of solidarity after November’s shootings and bombings in Paris that killed 130 people and evoked memories of the 26/11 Mumbai attacks. “The day Paris was hit by terror, I decided our Republic Day parade guest must be France as our people are united against the enemies of humanity,” Mr Modi said.