Renewed friendship

With geo-economics tending to dominate geo-politics in international relations, the success or lack thereof of high profile visits by heads of state often tends to get measured in dollars and cents, in terms of deals struck and business done. By that yardstick, French President Francois Hollande’s visit to India can at best be described as a middling success. Although Indian and French companies signed as many as 13 agreements, and French companies have promised to invest as much as $10 billion in India over the next five years, what was to have been the centrepiece of the visit — India’s purchase of 36 Rafale fighter aircraft — remained a work in progress. The ‘inter-government agreement’ signed between India and France merely reaffirms the commitment to buy the 36 jets, something which Prime Minister Narendra Modi had already announced after his Paris visit in April last year. The final price is yet to be agreed upon, with Rafale’s builder Dassault Aviation wanting a significant price escalation for certain design modifications India wants carried out, which India is reluctant to concede. The other big deal — an agreement on buying six French nuclear reactors for India’s civil nuclear energy programme from French supplier Areva — is also progressing slowly, with Areva’s recent takeover by another French company Electricite de France, further complicating the issue. The bilateral trade and investment agreement between the two nations, already more than seven years in negotiations, also appears to have also been put on the backburner for the time being, with the joint statement issued by the two leaders failing to make any mention of it.

But it would be a mistake to view Indo-French relations only through the prism of trade and business. By accepting Modi’s invitation, issued in the aftermath of the terror attacks in Paris, Hollande has sent a strong message of support to India’s fight against terror. There’s plenty of symbolism from India’s side too; Hollande will be the guest of honour at India’s 67th Republic Day celebrations, in which a French military contingent will also take part — the first time ever that a foreign power has been accorded this honour. The decision to intensify cooperation in counter terrorism marks a significant shift in global perception of India’s own battle against terror.

The new joint initiative in the area of renewable power — Hollande inaugurated the interim secretariat of the International Solar Alliance in the capital during his visit — also appears promising. Hollande had invested much political capital in a successful outcome to the Paris climate talks, where Modi’s intervention played a critical role, something Hollande has acknowledged. With India expected to be the world’s fastest growing economy this year, even as France faces an “economic emergency” at home, the visit has laid the grounds for India to enlarge both its economic and strategic partnership with France.

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