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France is one of the largest investors in India. Cumulative approved French investment from 1991 to September 2001 amounted to Rs. 57,474.34 million. There is a tremendous scope for enhancing investment. Given the institutional arrangements for promoting investment that exist in the form of the Bilateral Investment Protection Agreement (BIPA) and an Agreement on Avoidance of Double Taxation, how does France see India as a major recipient for investment?
France was the 9th investor country in India during the 1991-2001 period with an actual amount of Rs. 20 billions of investment. What is more interesting is the acceleration which can be observed. In the last 3 recorded years (2000-2002), French companies have invested Rs. 5 billion per year in India.
This trend, as you rightly mention, has been facilitated by the existing bilateral agreements. But it has mostly been driven by the long term interest of the French companies in the Indian economy. They are keen to take advantage of the new investment climate and the good performances of the Indian Economy.
I know that many French companies are contemplating new investments in India, in order to strengthen their existing ones or to develop the new activities.
While trade figures are high between the two countries, it has been suggested that there is still future potential for growth. What has the French government done to step up cooperation through strategic alliances, joint ventures and technical cooperation in areas such as agro-products, telecommunications, energy, transportation and information technology?
I agree with you on the sectors which you have mentioned. They are precisely those where we have identified the best opportunities of collaboration.
We have seven Indo-French working groups, covering most of these sectors, bringing together senior civil servants and industrialists from our two countries.
The French government is very keen to develop a greater awareness about the Indian economy in France. Ubifrance, the French Centre for Foreign Trade, will organize an important seminar on the Indian economy in Paris in October, so that the French business community can exchange views and update their information on your country. More than 120 businessmen and decision makers have participated last year and an even greater number is expected this year.
Indo-French bodies, such as the Indo-French Chamber of Commerce, the Indo-French Technical Association, actively promote business ties between French and Indian companies. At my Embassy, the Economic Mission is also working hard in this direction.
I myself spend much time in the French regions, explaining to the local authorities and business communities, the changes that are taking place in India and the growing economic potential that the country represents.
As for Information Technology, can India play as significant a role in France as it does in English-speaking markets?
India and France have a very old relationship in this sector. The software of the French “Loto”, a sort of national lottery, was outsourced to India more than 15 years ago !
Today, the Franco-Italian Group ST Microelectronics employs 1400 highly qualified people in India.
It is certainly not surprising that the English speaking countries, where you can also find many successful IT entrepreneurs of Indian origin, have a particularly strong relationship in this field.
I am sure that these ties will also grow with France, once the economic players on both sides develop the same sort of mutual understanding. It is only a matter of time.
There are a number of instruments of French bilateral assistance to India. The Financial Protocol is the chief instrument of such assistance though there are others such as the CFME action, the Industrial Cooperation programme with the Ministry of Industry, Support Fund for Enterprises and the Joint Indo-French Centre for Applied Research. What kinds of assistance can France provide India for development?
The Indian government decided one year ago that they would no longer make use of the Indo-French financial protocols.
The bilateral assistance today concentrates mainly on the scientific side, with a view to developing, on a par, joint research programs, some of which also have an industrial dimension.
There is considerable cooperation between India and France in the field of culture and education. Cooperation in the field of HIV, tuberculosis and genetics between the two countries has often been discussed. What is the situation as far as cooperation in the educational field is concerned?
Cooperation in this field is very essential indeed. Our focus is on higher education and research and we are working, together with our Indian academic and institutional partners to strengthen the ties; and to set up an efficient cooperation between universities and other higher educational institutions from both countries.
There are traditional obstacles to the growth of these exchanges, such as the language barrier. I strongly believe that the obstacles can be overcome by a suitable and vigorous policy of scholarships, communication and partnership between Indian and French institutions. For example, the existence of a wide network of “Alliances Françaises” in India is an advantage which we will further exploit to increase the number of French speaking students.
Bilateral cooperation in science and technology is regulated by the umbrella agreements between the two Governments. Have any new path-breaking initiatives been taken by the two governments concerned?
Indo-French ties in science and technology go back to the early days of independence. One of the most successful programs has been space technology, which till now is a remarkable example of achievement in scientific cooperation between France and India. The creation of the Indo-French Centre, for the Promotion of Advanced Research 17 years ago, and more recently the set up of new collaborative programs called “joint research cells”, also reflect the vigor of this cooperation.
New programs are being launched, such as in mathematics, under the umbrella of a recent “program of cooperation” signed with the Department of Science and Technology. But beyond these traditional areas of cooperation, we are also engaged in programs of social relevance, such as water science, health, environment and sustainable development. And the two French research institutes in India, namely the Centre for Human Sciences in Delhi and the French Institute of Pondicherry, play a major role in the development of new collaborations in this regard.
What is your view on the new government?
Dr Manmohan Singh has an excellent track record in previous governments. The policies announced by his Government seem to be reasonable and in the right direction. We will gradually know more about the implementation of the Common Minimum Programme.
Regarding the presence of Communist parties among the supporters of the Government, I have made several trips to West Bengal and recently the French Industry Minister visited West Bengal. We had the confirmation that the local authorities were very supportive of foreign investment and market-oriented economy.
I am confident that many French Ministers will soon have the opportunity to meet their new Indian counterparts. I am working on this and the Indian response is excellent.
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