9. The leaders also welcomed the first-ever bilateral dialogue on Maritime Security in the Indian Ocean Region held on 14-15 January in Paris which paved the way for enhanced cooperation in maintaining the safety of sea-lanes for trade and communications, countering the threat of piracy and maritime terrorism, maritime domain awareness and fostering trade and economic links in the Indian Ocean Region. Defence 10. The Leaders noted with satisfaction, that the bilateral Agreement on Defence Cooperation concluded in 2006 has advanced cooperation in defence cooperation, production, research and development and procurement of defence material. The two sides agreed that the Agreement on Defence Cooperation will be extended for another ten years. 11. The Leaders stressed the importance of joint military exercises. They welcomed the successful air exercise Garuda in June 2014 and naval exercise Varuna in April 2015, in which the French carrier strike group participated. They welcomed the latest round of the Shakti exercise held in India from 6-20 January which brought out useful operational lessons for the two Armies, especially in countering terrorism. The Leaders welcomed the port call at Toulon by the Indian Naval Ship Trikand in September 2015, and the conduct of a joint exercise to enhance interoperability between the two navies. The French multi-mission frigate Provence will participate in the International Fleet Review at Visakhapatnam in February 2016. 12. The two Leaders underlined the long history of cooperation between France and India in the defence sector and acknowledged the strong commitment of French companies to manufacturing in India. They called for further intensification of cooperation in agreed areas, including collaboration in defence technologies, research and development. In response to the new emphasis on defence manufacturing by the Government of India, they encouraged their respective business enterprises to enter into arrangements for co-development and co-production of defence equipment in India, including transfer of know-how and technologies. The Leaders also welcomed various joint ventures between Indian and French companies already underway and pledged their support to public and private enterprises for intensifying cooperation in this field. 13. The two Leaders welcomed the conclusion of the Inter-governmental Agreement (IGA) on the acquisition of 36 Rafale fighter aircrafts in flyaway condition, except for some financial issues relating to the IGA which they agreed must be resolved as soon as possible. 14. The two leaders also agreed to intensify cooperation between the Indian and French Armed Forces in the fields of cyber security, Special Forces and intelligence-sharing to tackle the common threat of terrorism. 15. President Hollande thanked Prime Minister Modi for inviting a French military band and contingent to participate in India’s 67th Republic Day Parade. Nuclear energy 16. Both countries reaffirmed their commitment to responsible and sustainable development of civil nuclear energy with highest consideration to safety, security, non-proliferation and environmental protection. France and India underscored the contribution of nuclear energy to their energy security and to the fight against climate change. 3/10