India has signed a deal to buy 36 fighter jets from France worth close to 8.7 billion US dollars. It is the country's first major acquisition of fighter planes in two decades.

French defense minister Jean-Yves Le Drian and his Indian counterpart Manohar Parrikar signed the contract in New Delhi on Friday.

India had negotiated with Dassault Aviation -- the planes' manufacturer -- on pricing for 18 months.

Under the deal, India will get 36 Rafale jets. The acquisition is part of the country's 150-billion-dollar military overhaul.