France and India are old friends. Both countries share deep affinities and unwavering trust since India’s independence. Thanks to early initiatives, we’ve seen individual friendships as between Romain Rolland and Rabindranath Tagore, André Malraux and Jawaharlal Nehru, Jean Renoir and Satyajit Ray, grow and mature over the years. This unique relationship extends beyond bilateral agreements – into business, culture, and everything else.
Improving over the years – ties, values, and opportunities
An intense cooperation between our two countries developed in areas as sensitive as defense, security and energy since the launch of Strategic Partnership in 1998. As global strategic partners, India and France consult each other on all international matters in a spirit of mutual understanding, respect, trust, and support, taking into account their respective security interests.
The State Visit of President François Hollande in January 2016, less than a year after the visit of Prime Minister Narendra Modi to France in April 2015, reaffirmed the exceptional nature of the Indo-French strategic partnership and helped strengthen the dynamism of our economic, scientific and cultural exchange. In 2017, a few months after Emmanuel Macron became the new president of France, PM Modi visited Paris and met the newly elected PM with an aim to bolster the bilateral strategic ties and discuss key issues like terrorism and climate change.
Trade and investments have grown over the years. At present, more than 1,000 French subsidiaries across sectors are present in India, employing a workforce of around 3,00,000 people. France has also collaborated with India under the ‘Smart Cities’ initiative taken up by the Modi government. About 120 Indian companies have invested in excess of Euro 1 billion in France, and employ close to 7000 people.
Developing bilateral cooperation on higher education, science, technology, research and innovation is a priority for France. The acclaimed cultural festival, “Bonjour India”, first launched with resounding success in 2009-2010, presented a hundred different shows during its second edition in 2013. The third is being held in 2017-2018.
France is a significant Indo-Pacific power. Not many know that France has the largest EEZ (Exclusive Economic Zone) in the world. In the Pacific Ocean, the French EEZ is over 6 million square kms, three times larger than that of India’s. It also has significant assets in the Indian Ocean, the island of Reunion and Mayotte, as well as the so-called Scattered Islands in the strategic Mozambique Channel. For this reason, France has maintained military presence in both the Indian and the Pacific Oceans. India has been steadily enhancing its maritime posture in the Mozambique channel, the island states of Mauritius, Seychelles, and importantly in the Persian Gulf. This matter is of utmost priority to both the countries; and they have struck crucial cooperation in maintaining commerce and communications in the region, countering marine piracy and terrorism, and building awareness.
A visit with a difference
The 40-year-old French president Emmanuel Macron’s visit to India in March 2018 takes place at an important juncture in regional geopolitics. Also, the visit marked the 20th anniversary of the strategic partnership between India and France. The economy of India is at the cusp of an inflection. On the other hand, France is positioning itself as a key strategic player in Europe, influencing politics and economy across the European Union. From a business standpoint, new and emerging sectors are taking center stage, while traditional ones – such as auto and aerospace – are likely to grow further.
Pressing the pedal – deals done
India and France inked 14 key Agreements/Mou’s in strategic areas of security, nuclear energy, and protection of classified information. Also, companies from the two countries signed 20 contracts worth Euro 13 billion, accounting for Euro 200 million investments.
The agreements, including those in the field of education, environment, urban development and railways, were signed after extensive bilateral talks between the 2 countries. There have been talks that the two countries have shaken hands to work together to deal with threats of terrorism and radicalization.
The deals signed by companies from the two countries include a contract for France’s Safran to supply airline SpiceJet with engines, water system modernization by Suez in the southern city of Davangere and a contract between industrial gas company Air Liquide and Sterlite. “Industrial Way Forward Agreement” was signed between French utility EDF and India’s NPCIL for the construction of six nuclear reactors at Jaitapur.
The leaders are confident that these initiatives will help SMEs and Mid Cap companies to establish and grow, both by trade and investment. As a step towards this, the countries also agreed to continue their work in making a conducive environment for the same. The India France Joint Committee shall be responsible to maintain regular economic cooperation dialogue to facilitate this at an institutional level.
The “reciprocal logistics support” agreement, which Prime Minister Narendra Modi called a “golden step” in defense cooperation, is a signal to Russia and to the U.S.-led alliance that partnered in the “Quadrilateral”, that both New Delhi and Paris feel the need to diversify strategic postures beyond their current choices.
Nuclear energy is one of three pillars that the strategic relationship rests on. Space technology and defense ties are the other two. France has been India’s biggest space partner over the past 50 years, helping it launch a spectrum of rockets. The defense relationship is poised to get another boost – an agreement in the works for Indian naval warships to use French naval bases in the Indo-Pacific could enhance their strategic reach through the Indian Ocean region. In this regard, both nations welcomed the “Joint Strategic Vision of India-France Cooperation in the Indian Ocean Region”.
Also, vibrant education cooperation between India and France is expected to increase the number and quality of student exchanges, consequently reaching 10,000 students by 2020. A joint statement spoke on an agreement for the mutual recognition of degrees which will facilitate the pursuit of higher education by Indian students in France and French students in India and enhance their employability.
The visit also highlighted the attractiveness of France for Indian investors. Outbound investments from India to France need to grow. France is a hub of innovation, research and development in areas such as aerospace, material sciences, mobility, IOT, and renewable energy. Indian companies ambitious of making significant leaps forward in these areas need to strike deals with French companies. This will give Indian companies significant technological advantage to compete in global markets.
The Way Forward
The two nations have carved out a forward-looking partnership. France and India have reaffirmed their cooperation on issues such as terrorism, climate change, sustainable growth and development, infrastructure, urbanization, science and technology. With the stage set for a paradigm change in the structure and content of the strategic cooperation, the time is welcoming for nations like India and France to take the lead and shape the narratives. Political leaderships in both countries are keen to take advantage of this momentum. Going ahead, we expect a rise towards people-to-people linkages through more scholarly exchanges. Meanwhile, the solar alliance demonstrates climate justice in action and can be a true game-changer. As France emerges as the driving force of a rejuvenated Europe and India increasing its global engagement, a partnership between the two is expected to be truly iconic a lot to look forward to.
