France rolls out red carpet for India’s Modi, a former EU outcast

Fevered speculation has centred on whether the Indian prime minister and French president can achieve a breakthorugh in the 'contract of the century'

French foreign minister Laurent Fabius, centre left, and Indian prime minister Narendra Modi, centre right, review an honour guard during a welcoming ceremony in the courtyard of the Hotel des Invalides in Paris, France on April 10, 2015. Ian Langsdon/pool/AP PhotoShow less

PARIS // India’s prime minister kicked off his maiden trip to Europe on Friday with all eyes on a potential multi-billion-euro fighter jet deal with France, hailed as the “contract of the century.”

Once persona non grata in the European Union, Narendra Modi was welcomed with open arms in Paris as he aimed to woo investors to his fast-growing economy.

Ahead of the visit, fevered speculation has centred on whether Mr Modi and the French president, Francois Hollande, can achieve a breakthrough in long-blocked talks over 126 French Rafale fighter jets.

The deal, dubbed the “contract of the century” in the French media, could be worth billions, but has been bogged down over cost and New Delhi’s insistence on assembling a portion of the high-tech planes in India.

Ahead of a meeting with the Indian prime minister at his Elysee Palace office, Mr Hollande said he wanted to make “progress” in the thorny talks.

In a bid to get things moving, New Delhi is considering buying a first tranche of a smaller number of planes to replace its creaking air force fleet, Indian media reported.

The Hindustan Times said the government was "seriously considering (the) strategic purchase of up to 40 Rafales for the Indian air force" due to "operational necessity", with further purchases later.

It quoted an unnamed source as saying a new deal could be worked out this year, with the exact number of planes depending on the final price.

Mr Hollande said earlier this week that he and Mr Modi “will have discussions” about the Rafale deal, but a diplomatic source added that no announcement was expected during the visit.

A French government source confirmed that talks were “ongoing” on Friday over the jets, but declined to give further details.

Indian defence analyst Saurabh Joshi said the country’s air force urgently needed new jets, but cautioned that buying a smaller number was not cost effective.

“Certainly Modi will try to take up the issue with the French government and ask them to hurry because of the depleting number of fighter planes, but he will have to go by the defence procurement rule book,” said Mr Joshi.

Mr Modi, a right-wing Hindu nationalist, was effectively blacklisted by the EU for years, accused of encouraging deadly communal riots in 2002 in the western state of Gujarat, which he governed for over a decade.

But after his landslide victory in a general election last year, and with India’s economy now growing faster than even China’s, France and Germany are rolling out the red carpet for the one-time outcast.

* Agence France-Presse