"Discussions on the M-MRCA contract are progressing well. We have also concluded negotiations on the SR-SAM, which, once approved by the Government, will be co-developed and co-produced in India," Prime Minister Manmohan Singh said.
Top of the agenda is a giant deal that France's Dassault Aviation hopes to close to sell 126 Rafale jets to India this year, although it will not be inked during the trip.
Dassault chief executive Eric Trappier has confirmed that Indian negotiators had detailed their needs for an additional 63 planes over the initial order for 126 aircraft.
"There is a welcome shift from defence trade to co-development and co-production of advanced defence items in India, which will help expand our domestic production base and strengthen the India-France strategic partnership," he said.
In the SR-SAM project, Indian DRDO and French MBDA would co-develop an air defence system to take out enemy missiles and aircraft attacking vital installations and buildings.
In the meeting between Dr Singh and Mr. Hollande, the "leaders agreed to give further impetus to the strategic partnership."
"The leaders reaffirmed their continued interest to enhance bilateral cooperation which is an important pillar of their strategic partnership and reflects their common determination to work for global peace and security," it said.
The two countries welcomed the ongoing military exercises including, Shakti, Varuna and Garuda and confirmed their willingness to further bilateral defence cooperation, by continuing to conduct such interactions, it said.
India has had strong defence ties with Farnce and several ongoing projects such as the construction of the Scorpene submarine in Mumbai and upgrade of Mirage-2000 aircraft are going on.