India also cleared the purchase of 43 Airbus planes for Indian Airlines at a cost of US $ 2.25 billion, Prime Minister Manmohan Singh told a joint press conference with British Prime Minister and EU President Tony Blair in New Delhi after the 6th India-EU Summit meeting.
Singh said his talks with Blair were "extremely good and productive" and the "most important outcome was the Joint Action Plan which provides a framework for fast evolving multi-faceted relations between India and the EU."
He described the JAP as an "ambitious" document which will help the two sides realise the full potential of their multi-faceted relations.
On the Indo-UK bilateral front, the prime minister said values made the two countries natural partners. "We share historic, close and most cordial relations with the UK," he said.
Singh asked the EU to review its technology export control regime with regard to India, keeping in view New Delhi's impeccable record in non-proliferation.
Singh said the deal between Indian Airlines and French company Airbus Industrie for purchase of the aircraft would raise the bilateral economic partnership, particulary in civil aviation, to new heights.
Welcoming the EU's decision to provide 33 million Euros in scholarships to Indian students for higher studies in Europe, the prime minister said, "Nothing creates more enduring bonds than education scholarships."
In his address, British Prime Minister Blair said the JAP puts India-EU relations on a "new, higher, intensified plane".
He said India's decision to purchase aircraft from Airbus was a "welcome sign of developing trade relations."
He said both sides had "very good, open exchange" on terrorism.
Blair expressed the hope that the constructive engagement both sides had would bring about "significant change" and prove to be a "turning point" in bilateral ties.