India nears deal to buy 36 Rafale fighter jets from France

"Whosoever makes investment in the country should know about the taxation system in the country over the next five years, 10 years, 15 years", he said.

Prime Minister Narendra Modi and French President François Hollande travelled on the Delhi Metro's Yellow Line to Gurgaon on Monday to participate in the inauguration of the interim Secretariat of the International Solar Alliance.

Prime Minister Narendra Modi also said that the proximity between India and France will prove to be an asset in near future.

French President François Hollande began a three-day visit to India on Sunday to boost a multibillion-dollar deal for France's Rafale combat aircraft and work for closer cooperation on counterterrorism and clean energy. But, neither Modi nor Hollande made any reference to the Rafalae fighter jet deal.

"It is a decisive step for India to purchase the fighter jets and for France to make them available to such a great country", Hollande said, adding that financial aspects would be sorted out in "a couple of days".

What followed was a set of negotiations over pricing, manufacturing capabilities and India's wish to set up assembly units in India in association with HAL, which the French team did not agree to. He will hold talks with Indian leaders tomorrow and be a guest of honour on Tuesday at India's Republic Day parade, celebrating 66 years since the country adopted its constitution.

Later, responding to a query on ISIS, Hollande affirmed that France will not be "deterred" by any kind of threat of terrorism and that it will always protect the "values" for which it stands.

French President Francois Hollance who is on a three day India visit is the Chief Guest of this year's Republic Day celebration at Rajpath.

Sapin is accompanying French President Francois Hollande on a 4-day visit to India.

India and France on Sunday signed 16 agreements for bilateral cooperation in areas, from defence production to Modi government's smart-city initiative.

Hollande and Modi may give a final shape to the Rs 60,000-crore deal for 36 Rafale aircrafts.

The announcement about the inter-governmental agreement followed Modi's talks with French President Francois Hollande in Delhi.

On Sunday, Airbus Helicopters and India's Mahindra Defense, a private company, signed a "statement of intent" in the presence of the two leaders to produce military helicopters in India as a joint venture.

He noted that these are the same jets which have been fighting the Islamic State extremist group, which claimed responsibility for the November terrorist attacks in Paris.

It had also raised fresh expectations that the Rafale deal would be put to bed once and for all after years of tortuous negotiations.

The two leaders are also expected to discuss deals on more nuclear reactors, smart cities, space cooperation, business and energy.