India and France today signed a landmark agreement on civil nuclear cooperation that covers supply of reactors and atomic fuel, taking the first concrete step to bringing India back in the nuclear mainstream after 34 years of isolation.

The Indo-France Civil Nuclear Cooperation Agreement was signed by Atomic Energy Commission Chairman Anil Kakodkar and French foreign minister Bernard Kouchner in the presence of prime minister Manmohan Singh and French president Nocolas Sarkozy.

The two countries also pledged to enhance bilateral ties in all spheres, including economic, political and cultural fields. 

''Today we have added a new dimension to our strategic partnership by signing an inter-governmental agreement on civil nuclear cooperation,'' Manmohan said after signing the agreement.

France now becomes the first country to open nuclear trade with India after the 45-member Nuclear Suppliers Group (NSG) granted a waiver to New Delhi on 6 September.

The Indo-US nuclear deal is awaiting Congressional nod and an agreement on it between the two countries is expected to be inked soon.

The agreement will form the basis of wide ranging bilateral cooperation from basic and applied research to full civil nuclear cooperation, including reactors, fuel supplies, nuclear safety, radiation and environment protection and nuclear fuel cycle management.

India also signed two other agreements with France relating to social security matters which will benefit Indian and French nationals staying in each others' countries on short duration up to five years and a long term agreement on utilisation of the Indian Polar Satellite Launch Vehicle (PSLV) launch services.

The agreement signed between ISRO chairman G Madhavan Nair and Francois Auque, CEO of Astrium, a wholly owned subsidiary of aerospace and defence space systems and services major EADS.

The agreement enables Astrium to offer attractive solutions in the international markets for in-orbit delivery of its earth observation satellites, using the PSLV launch services from Antrix, the commercial arm of ISRO.

The two companies have been successfully cooperating in the field of space activities over the past six years. Astrium has awarded two telecommunication satellite contracts -  W2M for Eutelsat and HYLAS for Avanti Systems.

''France is the first country with whom we have entered into such an agreement after the lifting of international restrictions on civil nuclear cooperation with India by the NSG. I conveyed to President Sarkozy our gratitude for France's consistent support to our civil nuclear initiative,'' Singh said.

The two countries have proposed to give a new impetus to cooperation in nuclear energy for peaceful purposes as an expression of their strategic partnership.

In a joint statement, both sides said they recognise nuclear energy as a reliable source of sustainable and non-polluting energy that could make a significant contribution to meeting the global challenge of achieving energy security.

It also noted that both the countries share common concerns and objectives in the field of non-proliferation of weapons of mass destruction and their means of delivery, including in view of possible linkages to terrorism.

''As responsible states with advanced nuclear technologies, including in the fuel cycle, the two countries are interested to promote nuclear energy with the highest standards of safety and security,'' the statement said.

Manmohan also addressed the India-EU Business Summit, during which he said New Delhi expects to finalise agreements on civil nuclear cooperation with other European countries.

 Both also pledged to consolidate their relationship in the field of defence by increasing the range, level and frequency of their military exchanges, joint exercises, joint programmes and prospects in the fields of defence industry, research and technology.

The two countries are planning to jointly develop short range surface-to-air missiles (SRSAM) and of the Kaveri engine for Light Combat Aircraft.

Under a commercial agreement for use of India's PSLV for launch of European satellites, ISRO and CNES plans to work as equal partners in Megha Tropiques Joint Satellite Mission, which is progressing well along with SARAL (Satellite for Argos and Altika), slated to be launched in 2009-2010 and which will contribute to better scientific understanding of weather and climate related issues.

The two countries expect to double bilateral trade to 12 billion euros by 2012 and further liberalise their visa regime to facilitate issuance of visas for business purposes, particularly concerning students and young people working as trainee or as volunteer in French companies.

An agreement on Social Security for the benefit of business enterprises and professionals of the two countries has been concluded. This constitutes an important step forward in facilitating two way investments.

The two sides have set up a high level CEOs Forum which would have its first meeting by the end of the year.

The two countries have agreed to hold dialogue on environmental issues and have set up a joint working group on climate change and technology transfers and their financing. The group should hold its first meeting by the end of the year.

French development agency  Agence Française de Développement (AFD) will set up an office in India under an MoU with the Department for Economic Affairs of the India's ministry of finance.

India and France also underlined the vitality of Indo-French scientific, technical and educational cooperation. Bearing in mind the joint statement issued on 25 January, we welcome the arrangements taken on one side to encourage more Indian students to study in France and, on the other side, to allow more French students study in India.

The Indo-French consortium of universities will facilitate the organisation of courses of mutual interest at Master's degree and Ph.D levels by Indian and French universities, increase the number of academic institutional tie-ups, scholarships, joint projects, seminars and novel collaborative schemes, including substantive contribution of French higher educational institutions to the creation of one of the eight new Indian Institutes of Technology. This Indo-French Consortium will also facilitate the mutual recognition of degrees, encourage student/faculty mobility and intellectual exchanges.

Both sides reiterated their commitment to intensify cooperation in the field of culture, tourism and to foster people-to-people contacts. In this context, both sides reiterated the political commitment to establish an Indian Cultural Centre in Paris at the earliest.

See: Text of the joint declaration betwen  Prime Minister of India Dr. Manmohan Singh and President Nicolas Sarkozy