The Hindu Business Line : THE FRENCH CONNECTION

Given the special position France has traditionally enjoyed in international relations, any visit by a French President cannot but be an important event for New Delhi. The symbolic value of President Jacques Chirac's visit has been substantial. However, its substantive impact on India-France relations is still not clear though the two countries have inked at least a couple of major accords in the spheres of civilian nuclear energy cooperation and defence. The overriding impression is that France does not want to be left out from partaking of the economic goodies the Indian market promises; this perhaps explains why the focus has been on areas with excellent trade spin-offs for French companies.

For example, the declaration on civilian nuclear energy cooperation makes the point that the two countries would like to take forward the cooperation. This is an area in which French industry has a substantial stake. . But far more useful for India would have been Paris taking a more positive stand on the nuclear issue than suggested by the declaration. Of course, France cannot take a stand that would go beyond the contours of the negotiations currently on between the United States and India on the resumption civilian nuclear cooperation. This is why the focus on nuclear cooperation during Mr Chirac's visit should not be given inordinate importance, apart from Paris' commitment to do all it can to persuade the Nuclear Suppliers Group to treat India's case more sympathetically.

French defence equipment manufacturers too will gain immensely if Paris can persuade New Delhi to source supplies from its companies. After the $3-billion Scorpene deal signed last year, strenuous efforts are on to get India to buy the fourth-generation fighter aircraft Rafale, a deal which could top $8 billion. Clearly, it is in these areas of defence cooperation that the French interests lie, and it is an opportunity for New Delhi to drive a hard bargain.

Mr Chirac spoke of the huge Indian market and the promise of its further expansion. He should know because his country stands to gain much if French companies can sell their products in the face of stiff competition. Till now, progress has been satisfactory, the latest conquests being the $2.4-billion deal for 43 Airbus aircraft. But what has India got from the Chirac visit in terms of its being able to exploit the French market for its products and services? Precious littlebeyond Mr Chirac's hope that the bilateral trade would double (from $3 billion in 2004-2005) in five years. While the French interest now is to have the Indian retail sector opened up to FDI, it is somewhat disappointing that, among other things, Indian IT professionals continue to face problems in securing visas and work permits in France. Late last year the Commerce Minister pointed out these and other hurdles, in the hope that they would be sorted out expeditiously. Has any progress been made in this direction till now?

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