The Hindu Business Line : A new bonhomie

THE POWER OF suggestion appears to be working for India. On the heels of the United States move to lift sanctions on Indian import of nuclear technology comes the prospect of France resuming supplies. Though vaguely worded, the joint statement in Paris of the Prime Minister, Dr Manmohan Singh, and the French President, Mr Jacques Chirac, says: "France acknowledges the need for full international civilian nuclear cooperation with India and will work towards this objective." If this does not quite meet Dr Manmohan Singh's assertion of India's right to a viable civilian nuclear programme in these times of high oil cost, it is perhaps because Paris wants to hedge its bets, considering the European Union's reluctance to part with sensitive technology. But the Prime Minister wants France, an acknowledged leader in civilian nuclear development, to shed old suspicions and go by New Delhi's record on non-proliferation. The catch is that if France agrees to convince the Nuclear Suppliers Group to lift restrictions on India, it follows that Paris is acceptable to India not signing the Comprehensive Test Ban Treaty and the Nuclear Non-Proliferation Treaty. Will France go out on a limb for India?

While the nuclear deal happens at its pace, Paris must be pleased with New Delhi buying 43 Airbus aircraft at a cost of $2.2 billion, and six Scorpene submarines from the French ship-builder DCN for $2.48 billion. As part of the second deal, Armaris — a joint venture between French Defence electronics giant Thales and DCN — won a $740-million order for technology transfer. All this deal-making should pitch India-France trade on a new growth path. High time too for the current two-way trade is under 3 per cent of India's dealings with the world. France is seventh on India's list of foreign investors, with direct investments at $760 million. But more should come after Dr Manmohan Singh's wooing of French CEOs, reiterating that the liberalisation process is irreversible. He saw a role for French companies especially in the areas of energy, hydrocarbons, infrastructure, pharmaceuticals and agri-business. Also, Paris now seems to be taking New Delhi more seriously, as is clear from Mr Chirac terming India a "major partner" of the world, and that "this is... why France has always supported India's position, in particular its legitimate aspiration for a seat on the UN Security Council as a permanent member."

What has helped India score with France is its ability to keep open channels of communication with various global powers. The new cordiality with Washington has not blinded New Delhi to other power capitals, though the US question will pop up as it and France make a pitch for fighter aircraft that India plans to buy. The traditional closeness with the UK and the new bonhomie with France should help India in the larger context of tapping the EU, which is a major growing market for Indian goods. Dr Manmohan Singh has given a new push to the bilateral relations that gained momentum after Mr Chirac and Mr Atal Bihari Vajpayee exchanged visits in 1998. Will Dr Manmohan Singh's power of suggestion now sustain the relationship?

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