India-France Relations: New Dimensions

– Dr Arvind Kumar, President, India Water Foundation, New Delhi.

Current pace of cordial and warm relations between India and France has a history of over three centuries behind it. Francois Bernier (1625–1688), a French physician and traveler, served as the personal physician of the Mughal emperor Aurangzeb for about twelve years in the 17th century.  By early 18th century, the Anglo-French rivalry had been extended to India and the French succeeded in the 1746 Battle of Madras, but failed in the Battle of Arcot in 1751.

Apart from Britain, France was another major European power to establish its colonies in India. France established the madras Presidency that comprised modern Indian states of Andhra Pradesh and Tamil Nadu. Subsequently, France ceded bulk of Madras Presidency to the British but retained control of Pondicherry and Calicut.

Following attainment of independence by India in August 1947, diplomatic relations were established between France and newly independent India. Peaceful negotiations between New Delhi and Paris for the transfer of Pondicherry and Calicut to India were completed by 1954.

Cold War Phase

During much of the Cold War, relations between the India and France were cordial but relatively distant. Neither country loomed large on their counterpart’s strategic radar screen, nor their relationship over those long decades has been variously described as ‘not bad but lethargic’, ‘cordial but stagnant’, or ‘lacking dynamism’.

This relative absence of tensions between New Delhi and Paris during the Cold War era could largely be attributed to France’s quest for a degree of strategic autonomy from the rest of its NATO allies, and the US in particular. This aspiration for a certain degree of strategic flexibility in its dealings with the rest of the world most notably led to France’s decision to develop its own military nuclear capacity or force de frappe in 1958. The then President of France, Charles De Gaulle, had taken unilateral decision to pull out of NATO’s integrated military command structure in 1966. France’s refusal to consistently toe Washington’s line meant that it often harboured a slightly more sympathetic attitude towards India than its allies.

It is worth mentioning here that during the first decades following India’s independence, Western countries, under the leadership of the United States, almost invariably sided with Pakistan rather than India over the Kashmiri dispute. This was due, in part, to the fact that Pakistan, by joining the Baghdad Pact or SEATO, had become an important ally of the West in the region. Paris, although allied with the West, frequently took a more measured attitude, declining to systematically side with Islamabad.

When the Chinese attacked India in October 1962, Nehru told Jean-Paul Garnier, the then French Ambassador to India that it was an invasion pure and simple. The French President wrote immediately to Nehru: “We cannot approve that border claims are settled by military actions which is in any case disproportionate with the proclaimed objectives (of the Chinese).”1

A few weeks later, when Ali Yavar Jung, the then Indian Ambassador to France met de Gaulle in Paris to thank him for the French support, the General conveyed to him what would be the core of the French position for several decades. He told Jung: “France is the friend of India, not its ally.”2 Paris was, however, prepared to provide some military supplies to Delhi albeit in consultation with the US.

France was one of the first western countries, for example, to lift the arms embargo that hit both India and Pakistan in the aftermath of the 1965 conflict. Similarly, during the 1971 war, Paris was one of the only Western capitals to comment on the legitimacy of India’s concerns vis-à-vis of the refugee crisis in its border regions with Bangladesh. Such gestures were duly noted and appreciated in Delhi.

During the Cold War period, the divergent objectives of their respective foreign policies kept New Delhi and Paris away from each other. Despite India’s commitment to the policy of nonalignment, its drifting ever close to the then Soviet Union in general and signing a treaty of Treaty of Peace, Friendship, and Cooperation with Moscow in 1971 in particular, was viewed with concern by French officials, as was De Gaulle’s decision to recognize the People’s Republic of China in 1964 by their Indian counterparts.

France’s India policy was dependant on many external factors: French colonial past in Indochina and Africa, General de Gaulle’s ‘discovery’ of China, alliance with other Western powers and more seriously, policy of equidistance between Delhi and Islamabad which did hamper a deeper ‘friendship’ between France and India.

Overall, however, both countries’ ties lacked the degree of acrimony and mistrust that characterized Indo-US relations during the Cold War. In fact, the Indo-French relationship during much of this period can best be defined by its very lack of sentimentality. Their rapport was business like and mainly restricted to arms sales. Between 1950 and 1962, France’s total arms sales to India, at 794 million dollars, ranked second after those of Great Britain at more than 4.5 billion.

Post-Cold War Phase

In the aftermath of the Cold War, France took a few years to realize that India, with its growing and liberalized economy, vibrant democracy and increasingly capable armed forces was a major rising power. When it did, however, things began to at a faster pace.

1998 is generally recognized as being the ‘watershed year’ in France-Indian relations. With President Jacques Chirac’s state visit to India in January 1998 and PM Vajpayee’s visit to Paris in September of the same year, the relationship changed from one that was politely indifferent to one of a genuine strategic partnership. A broad and wide ranging Indo-French strategic dialogue was established, and France publicly came out in support of India’s bid for a permanent seat at the UNSC. The growing warmth in France-Indian ties was further revealed in the course of 1998 when Paris remained silent after India’s decision to go ahead with the Pokhran nuclear testings, which were almost universally condemned at the time. Since the late 1990s, France has been a steadfast and unwavering supporter of Delhi’s nuclear energy needs. Recent years have witnessed multidimensional growth in relations between India and France, as can be evidenced from frequency of exchange of highest-level visits between the two countries.

President Nicolas Sarkozy’s visit to India,

President Sarkozy paid a State visit to India from 25-26 January 2008. He was the Chief Guest at the Republic Day Parade. He was accompanied by 5 Ministers: Environment Minister (and DPM) Jean-Louis Borloo, Defence Minister Herve Morin, Justice Minister Rachida Dati, Higher Education and Research Minister Valerie Pecresse and Deputy Foreign Minister for Human Rights Rama Yade and a large business delegation. Sarkozy addressed a very large business meeting organised by FICCI. This visit was important as it gave an opportunity to establish contacts at the highest level after President Sarkozy took over.

India PM’s visit to France, 29-30 September, 2008:

PM Manmohan Singh paid an official visit to France from 28th-30th September, 2008. The India-EU Summit took place at Marseille on 29th September while the India-France bilateral Summit took place in Paris the following day. During the visit, besides meeting President Sarkozy, PM Manmohan Singh also met French PM Francois Fillon and addressed a gathering at MEDEF (French Association of company heads).

Indian PM’s visit as Guest of Honour to the 14 July 2009 Bastille Day Celebrations: Prime Minister Manmohan Singh visited France from 13-14 July 2009. He was the guest of honour at the French National Day celebrations (Bastille Day parade). A 400 strong contingent of the Indian armed forces took part in the parade and led the march past. This was the first time ever, that Indian troops took part in another country’s national day parade. President Sarkozy hosted a lunch in honour of Prime Minister Manmohan Singh, after which PM and the President addressed the larger gathering of invitees to the President’s National Day reception at the Elysée. PM extended an invitation to President Sarkozy and his wife to visit India. Prime Minister Manmohan Singh and President Sarkozy have also met during 2009 at international conferences – the G-8 + 5 in Italy and the G-20 Summit in London (April 2009) and Pittsburg (Sept 2009). The two leaders held a separate meeting on the sidelines of the CHOGM in Trinidad & Tobago on 27 November 2009 and G-20 Summit in Toronto in June 2010 and discussed both bilateral and global issues.

President Sarkozy paid an Official Visit to Indian from 4-7 December 2010. This was his second visit to India.

French President Nicolas Sarkozy and French First Lady Carla Bruni Sarkozy on their arrival in India on 4 December 2010.

French President Nicolas Sarkozy and French First Lady Carla Bruni by a high level delegation, arrived in India on 4 December 2010 on a four-day visit to the country. While the primary focus of the trip was to discuss the Indo-French nuclear reactor deal, the couple managed to visit some of the country’s most famous monuments and catch a glimpse of India’s rich cultural heritage.

The French President and his wife visited the famous Taj Mahal on their first day itself.

It was French First Lady Carla Bruni Sarkozy’s first time in India and clearly mesmerised by the country she said, the visit was like a dream.

Support for UNSC Seat

India has been making a strong pitch for envisaging reforms in the Security Council of the United Nations. India’s concern in this regard has been echoed by the Indian leaders in various international fora. Prime Minister Manmohan Singh, while addressing the recently held G-8 Summit in Rome, had maintained that “the UNSC has not changed at all and its present structure poses serious problems of legitimacy.

The system of two-tiered membership, which gives a veto to the five permanent members i.e. the nations that emerged victorious after the Second World War, is clearly anachronistic.”3

Strongly backing India’s bid for a permanent seat in the UN Security Council, the French Ambassador to India Jerome Bonnafont said on 7 July 2009 in New Delhi that it was absolutely necessary if the global body wanted to remain a ‘legitimate’ place for handling peace and security crisis.

Noting that the last reforms to the Security Council were made in the sixties, Ambassador of France further noted, “If we want the Security Council to remain a legitimate place for handling peace and security crisis in the world, it is absolutely necessary to have India as well as couple of others as permanent members.”4

Asserting that the reform was also imperative in order to avoid unilateralism and to create an environment where countries sit together to address the threats to peace, the French Ambassador said it was a very difficult reform which required two-third majority of the UN Assembly besides the five permanent members and there was a group of countries which did not want this reform but France was determined to push for it.

Strategic Partnership

India and France have in recent years developed a broad framework for mutual strategic cooperation in the fields of defence and civil nuclear cooperation. In the military domain, the Indo-French High Committee for Defence Cooperation was set up in 1998 that is jointly presided by the special representative of the French Ministry of Defence and the Indian Defence Secretary. The Committee comprises of three sub-groups that discuss issues on military cooperation, military industrial complex and strategic issues.

During his visit to India in April 2003, the French Defense Minister Michele Alliot-Marie pledged stronger military ties with India. The French defense minister told reporters in New Delhi on 28 April 2003: “Our long-term defense ties are going to get deeper because we have similar vision that there should be international democracy in the world. But a country will be heard only if it has credible defense and so Indian and French ties are very, very important.”5

The armament partnership between India and France has existed for many years now and there are a number of projects already going on in the realm of defence. India has signed a $2.1 billion deal with France for the construction of six Scorpene submarines and a partial transfer of technology. The first Indian-built Scorpene will be ready in 2010 and the sixth in 2016.

New Delhi is also planning to buy around 130 fighter jets, and French aircraft manufacturer Dassault Aviation is pursuing talks with India on selling a number of its Mirage 2000s 2000-5 warplanes.

The Indo-French naval cooperation is part of the broader Indo-French strategic partnership. New Delhi and Paris have consolidated the bilateral naval cooperation to include ship visits, joint naval exercises and exchanges of naval delegations and trainees in defense institutions. In May 2002, as part of the Varuna series, the French nuclear aircraft carrier Charles de Gaulle, Super Etendard and Rafale M fighter aircraft and Indian Sea Harriers were involved in joint exercises.6

Nuclear Pact

India and France have signed a nuclear deal, inked on 29 September 2008 during Indian Prime Minister Manmohan Singh’s visit to France, which paves way for the sale of French nuclear reactors to India.7 The signing of the nuclear deal came after India and France agreed a Framework Agreement for Civil Nuclear Co-operation in early January2008 during French President’s visit to India.

France is the world’s second largest producer of nuclear energy after the United States. The deal in effect ends a ban which was imposed in 1974 when India conducted its peaceful nuclear explosion and prevented countries from engaging in civilian nuclear trade with Delhi.

Cooperation: Civilian Nuclear Energy

France has been a partner in the field of civil nuclear energy for many decades. France played a major role in the IAEA and the NSG for the eventual lifting of restrictions on civil nuclear cooperation with India. A landmark Agreement on Civil Nuclear Cooperation between India and France was signed during the visit to France of PM Dr. Manmohan Singh on 30 September, 2008. This was the first of its kind signed by India with any country, following the NSG waiver for India. Thereafter an MOU was signed on February 4, 2009 between Nuclear Power Corporation of India and the French nuclear energy company AREVA for setting up 2, leading to possibly 6 EPR reactors/power plants of 1600 megawatts each. Negotiations are underway on a contract in this regard. India has 22 nuclear reactors and is seeking to expand its nuclear energy sector, opening up a market estimated at $142bn) over 15 years. According to analysts, more nuclear plants in India could help reduce global demand for oil and gas while at the same time significantly reducing the country’s pollution levels.

Civilian Space Cooperation:

France and India view each other as important partners in space technology and applications. Arianespace continues to provide launch facilities for Indian Satellites (INSAT), while India’s PSLV has been used to launch satellites for European customers. ISRO and its French counterpart CNES hold annual meetings, the last being in Bangalore in July 2010. ISRO and CNES are working as equal partners on a scientific satellite programme called MeghaTropiques which is expected to be ready for launch in early 2011. Another satellite SARAL (satellites for ARGOS and ALTIKA) designed and built by ISRO with active co-operation from CNES is also expected to be launched in 2011. The Meghatropiques is designed to study tropical weather and could yield scientific data of relevance globally, in view of the importance of climate change issues. The Joint Working Group between ISRO and CNES meets regularly.

Economic Relations

In recent years, both New Delhi and France have been actively engaged in providing impetus to the economic relations by identifying various areas where untapped complementarities hold forth the promise of further growth. Both countries have instituted agreements to provide protection to bilateral investment from each other, and also to avoid double taxation. Apart from meetings of the high-level Joint Economic Commission, which provides guidance for the overall economic relationship, sector-specific consultations take place at regular intervals between the two governments to facilitate cooperation in areas like Energy, Telecommunications, IT, Mining, Roads, Urban Development, and Agriculture. In addition, there are increasingly active interactions between the Commerce and Industry Associations of the two countries and between individual companies.

Exchange of high-level visits by the leaders of India and France Prime Ministerial visits from India to France (in 1992, 1995, 1998, 2003, in September 2005, in September 2008 and in early July 2009) and visit of the French Prime Minister to India (in 2003), the visits of the French President to India (in 1998, in February 2006 and in January 2008), the visit of Indian President to France (in 2000), and the growing French interest in establishing their presence in Asian markets have all contributed to a broadening of economic links.

The series of high-level visits in the commercial field is reflective of the growing interest of both the countries in expanding trade between the two countries. During the visit of Prime Minister Manmohan Singh to France in September 2005, he and President Chirac decided to double the bilateral trade in the next five years. Subsequently, the time frame of doubling the bilateral trade was reduced from five years to three years during the meeting of the Commerce & Industry Minister Kamal Nath with the French Foreign Trade Minister Mrs. Christine Lagarde in Paris in May, 2006.8

According to the French trade statistics, the India-France bilateral trade went up by around 194% between 1997 and 2006, with Indian exports to France growing by about 164% over the same period

The statement provided below reflects the state of Indo-French trade over the last ten years:

Indo-French Trade (Figures in million Euros)

Source: (Foreign Trade Statistics), French Ministry of Economy, Finance & Industry

The major items of French exports to India comprise aeronautical and space industry/construction products, machinery for the production and use of mechanical power, measuring and process control equipment, electrical equipment and apparatus, other special purpose machinery, basic organic chemicals, etc. Indian exports to France consist of a wide range of goods and services spread over a large base of Indian companies, especially from the small and medium sector. While traditional items such as garments, textiles and leather products constitute a major share of India’s exports to France, a number of newly developed non-traditional items such as refined petroleum products, food products, organic chemicals, etc. are showing promising growth.

From August, 1991 to March, 2007, Government of India had approved 27,426 foreign collaborations (technical & financial) proposals with a corresponding foreign direct investment of Rs. 2,876.32 (US$ 75.36) billion. Out of this the total number of approvals with France have been of the order of 915 (3.34% of the total approvals) with an equity participation of Rs. 67.63 (US$ 1.76) billion (2.35% of the total Investment), French companies rank 11th in the list of countries in terms of cumulative FDI approved from August 1991 to March 2007. Top sectors attracting FDI approvals (during August 1991 to March 2007) from France are Fuels (power & oil refinery) (17.14%), Chemicals (other then fertilizer) (16.07%), Cement and Gypsum Products (14.15%), Glass Industry (9.93%) & Food Processing Industry (6.87%).

The cumulative FDI inflows (net of ADRs/GDRs) during 1991-2007 (up to March) are US $ 54.63 billion. France ranks 8th with cumulative FDI inflows (net of ADRs/GDRs) at US $ 0.90 billion (1.98%). Top sectors attracting FDI inflows (during January 2000 to March 2007) from France are Chemicals (other than fertilizers) (18.80%), Cement and Gypsum Products (15.82%), Services Sector (financial & non-financial) (9.41%), Fuels (power & oil refinery) (6.47%) & Electrical Equipments (including computer software & electronics) (5.34%)

An Indo-French Joint Committee for Economic & Technical Cooperation was set up in 1976 through an Agreement. Meetings are held at Ministerial level alternately in Delhi and Paris. Several Joint Working Groups at the officials’ level have been constituted under the Joint Committee through MOUs to deal with specific aspects of economic cooperation.

A MoU on co-operation in the field of Intellectual Property was signed between India and France on 15 July 2006. The French Minister for Foreign Trade visited India from December 01-06, 2006 with a delegation of 200 French SMEs for the India-France SME Forum 2006 organized by UBIFRANCE in partnership with FICCI. In January 2007, Mr. Francois Loos, French Minister for Industry went to India for the CII Partnership Summit and visited Chennai, Bangalore and New Delhi.

Conclusion

The multi-dimensional nature of expanding relationship between India and France is the testimony of the fact that both countries are eager to further consolidate their existing friendly relations for the mutual advantage as well as for ensuring a stable and peaceful world. Though India’s relations have witnessed phenomenal growth with other leading powers like United States and Russia, but France seems more reliable. So India should accord priority in its relations with France.

Notes

1. “Role of France”, Indian Express, 8 January 2008.
2. Ibid.
3. “France Backs India’s Bid for Permanent UNSC Seat”, Outlook India.com, 9 July 2009, available at http://news.outlookindia.com/item.aspx?662451.
4. Ibid.
5. Nilofar Suhrawardy, “India, France Discuss Submarine, Mirage Deals”, Arab News.com, 29 April 2003, available at http://www.arabnes.com/?page=4&section=0&article=25687&d=29&m=4&y=2003 .
6. Vijay Sakhuja, India, France Strategic Partnership: Nuclear and Maritime Cooperation, Article No. 167, 28 May 2009, available at http://sspconline.org/articledetails.asp?artid=arti183 .
7. “India and France in nuclear deal”, BBC News, 30 September 2008, available at http://news.bbc.co.uk./2/hi/southasia/7644377.stm .
8. “Trade and Investment: Indo-French Relations”, India Embassy in France, available at http://www.amb-inde.fr/indo-french-relations.asp .
9. Ibid.