France, India discuss defence, energy after parade

PARIS (Reuters) - India wants to strengthen trade and political ties with France, Prime Minister Manmohan Singh said on Tuesday after Indian troops were given pride of place in the annual Bastille Day military parade.

About 400 Indian soldiers headed the colourful march down the Champs Elysees, under the gaze of Singh and French President Nicolas Sarkozy, while French military aircraft roared overhead.

The two men held a working lunch, where they discussed trade, including defence and nuclear energy projects.

"France loves India," Sarkozy told guests on the lawn of the Elysee Palace after the talks.

India plans to spend more than $30 billion over the next five years on modernising its largely Soviet-era weapons systems and has launched an ambitious civilian nuclear energy programme worth billions of dollars.

France has already secured a slice of the nuclear cake and is eyeing lucrative defence contracts, working hard to improve ties with India which has traditionally had closer relations with its former colonial ruler, Britain.

"I hope that we can deepen our strategic partnership in all possible ways ... so that we can write a new chapter in the history of the world," Singh said, standing alongside Sarkozy.

As part of its military plans, India is looking to buy helicopters, radar and 126 multi-role warplanes in what promises to be one of the world's biggest defence deals.

France's Dassault Aviation is bidding to sell its Rafale fighter plane to New Delhi and a source close to Sarkozy said on Tuesday there would be test flights later this year.