India will sign a deal with France for 36 Rafale fighter aircraft on September 23, reported NDTV. Under the deal, which is worth about €7.87 billion (Rs 59,300 crore approximately), India will also get spares, Meteor missiles and other weaponry from France's Dassault Aviation. French Defence Minister Jean-Yves Le Drian will visit India to sign the deal.

According to The Indian Express, the two signatories are now dwelling on the Inter-Governmental Agreement for the deal. A senior Defence Ministry official told Reuters that the Cabinet Committee on Security will meet next Wednesday to give its final clearance.

Government officials said they have been able to bring down the price of the aircraft by about €600 million (Rs 4,500 crore approximately) from the earlier quotation in January after tough negotiations. Out of the total cost, 50% will be covered under offset, meaning either France will reinvest this amount in India or buy equipment of this value from India. However, the agreement also says that there could be a 10% increase in the price on the follow-on order.

The Indian Air Force, which had initially asked for 126 aircraft, will start using the new fighter jets from 2019. India currently has 32 squadrons of fighters, but it needs at least 10 more.