First of all, we have a strategic partnership with India. It means that we understand India's security concerns. It also means that while honoring our international commitments, we are ready to work with India for the equipment of its armed forces. For decades, we are one of the countries that has been supplying sophisticated equipment to the Indian armed forces. This will continue.

The Indian procurement policy is evolving. We have no problem with technology transfer, offset policy, long term commitments, etc. It is fine for us. However, it is a complex and competitive market. Our position is: First on a long term basis, we are committed to India and (private) French offers are backed by the French government.

The State is not acting as a substitute for the companies, but it allows sensitive technology transfer compatible with our international commitments. We have excellent products which are already in use in the French army. It is a reality test. About the ups and downs, we regret what happened, but we are carrying on.

Are you ready to make an offer for the Rafale in the 126 fighter planes bid?

(Our company) Dassault has already presented an offer for the Rafale. Our government is backing it. Dassault is engaged in technical discussions on the specifics of this offer. We are supporting Dassault in this process.

Do you consider the technology transfer of the Scorpene submarine as a good example of collaboration between France and India?

Signed almost three years ago, the Scorpene contract is indeed one of the good examples of cooperation aiming at technology transfer and production in India.

France has recently published a white paper on defence announcing that more than 50,000 jobs will be cut in the next 6 years and the savings will be reinvested in intelligence and modernised equipment. Does this new policy have an implication for India?

If you look at the analysis of threats in the white paper you will see that the stability of the Indian Ocean is one of our important concerns. Cooperation with India is therefore naturally part of our strategy. Further, in the same analysis, the fight against terrorism is high on our agenda just as it is for the Indian government.

Strengthening our bilateral cooperation to fight against terrorism is a priority of the French president and government. After President Sarkozy's visit, we agreed to strength this cooperation through several mechanisms. Regarding the equipment, the white paper recommends a better equipped army with higher technological equipment. This will therefore enhance our offers for similar equipment to the countries with whom we are collaborating.

Since President Chirac's visit in 1998, you have a joint mechanism to fight terrorism. Are you satisfied with it?

We are united in our absolute condemnation of terrorism and our determination to fight it. And we have a mechanism: It is called the Strategic Dialogue. Several times a year, the personal representatives of the French president and the Indian prime minister meet for extensive talks on sensitive issues. They met prior to the last Summit (January 2008); they will meet again before the September Summit (in Paris). They discuss all sensitive subjects.

No subject is excluded from the agenda. The practical consequences of this dialogue as far as terrorism is concerned is that it leads to instructions given to the (security and intelligence) services to concretely increase bilateral cooperation. It is a powerful instrument to prepare summits and later to implement decisions.

Image: Two French helicopters take off soon after French Defence Minister Herve Morin met with Afghan soldiers at the Darlaman base in Kabul, July 20, 2008. French soldiers are mentoring this unit. Morin told Afghan President Hamid Karzai on July 19 that his country would stand by Afghanistan, which is battling the Taliban. Photograph: Thaibauld Malterre/AFP/Getty Images

Also see: Sarkozy calls for joint anti-terror efforts

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