India and France [Images] on Tuesday agreed to bolster bilateral defence ties by working on joint development of quick reaction short range surface-to-air missiles (SRSAM) and concluding a crucial deal on upgrade of Indian Air Force's frontline Mirage 2000 fighters.

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Transformation of defence ties from a buyer-seller relationship to joint production and transfer of technology for making hi-tech weapon systems and platforms was highlighted in a joint statement issued after summit talks between Prime Minister Manmohan Singh [Images] and French President Nicolas Sarkozy in Paris.

Negotiations on upgrade of IAF's fleet of 52 Mirages 2000 fighters, which will enhance their life for another 25 years, are almost in final stages.

The agreements India, France inked

This was reflected in comments made by Sarkozy after the summit meeting where he said 'discussions on the upgrade are well underway and expected to be finalised by next year'.

In the proposed deal worth over 1 million euro, the French aviation major Dassult has offered to upgrade the IAF Mirages to the level of French Air Forces Mirage 2000-9.

Another major French-led European company EADS has offered an agreement to jointly produce 1,000 SRSAM for the Indian Army [Images] in collaboration with DRDO and state-owned Bharat Dynamics.

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Dassult is also one of the leading contenders for the IAF's biggest ever military contract worth $10 billion for acquisition of 126 Medium Multi-role Combat Aircraft.

France has also agreed to collaborate with the DRDO to help develop the Kaveri aero-engine for India's indigenous Light Combat Aircraft (LCA). After struggling for over a decade to develop such an engine to power the LCA, DRDO recently floated and short-listed international tenders for the joint production.

Paris and New Delhi [Images] also agreed to increase the range, level and frequency of their military exchanges, joint exercises, joint programmes and prospects in the fields of defence industry, research and technology.

Indian Navy, Air Force and Army has been holding regular joint exercises with the French forces and the two armed forces have also participated in multi-nation war games.

Prime Minister Manmohan Singh, in a statement, said the two countries agreed that bilateral defence cooperation should move away from a buyer-seller relationship to joint production and transfer of technology.

The joint statement said the commitment by the two countries to consolidate their defence ties is reflected by the possibility of joint development, as early as feasible, of short range surface-to-air missiles and of the Kaveri engine for LCA.