While Sarkozy and his Aides may claim that The Much Awaited India Visit is more of a Leisure Trip than the Usual Strategic Trip of Premiers, One cannot refute France’s Hawk-Like Attempt to do an Obamanomics as far as Business is Concerned. And India Should Support That, Anyway!
As India does a reality check and is ready to upgrade its defence, it is worthwhile to ponder over what the Indo-French business summit during Sarkozy’s December 2010 is likely to be and what India is likely to gain out of it. Speaking strictly from the perspective of France, the French manufacturers are hopeful that their President’s visit would encourage India to upgrade its Mirage-2000 fighters at an expected cost of $2.1 billion. The European Aeronautic Defence and Space company (EADS) intends to sell its helicopters, in a deal valued at approximately $600 million. The President and his contingent will in all probability seek to promote the French built Rafale aircraft too and will make a strong case to sell it to India for a whopping $12 billion. The two nations are also all set to finalise the contract with nuclear group Areva (which has already signed a MoU for the construction of two reactors at Jaitapur in Maharashtra). Other than the defence sector, the automobile industry is the other one wherein there is a strong probability that announcement of investment to the tune of Rs.30-35 billion could be made. As a matter of fact, after a decade or so, the French automaker Citroen (part of PSA Peugeot Citroen group) is all set to embark upon its Indian sojourn.
So much so for France, but what does India stand to gain by shelling out billions of dollars of defence contracts? A lot more than what India has from mollycoddling up with US. France, for that matter has been a far more reliable friend – be its vocal support of India’s bid for a permanent membership of the UNSC or for that matter the maturity with which it handled its geo-political relation with India post the Pokhran test in 1998, or even its decision to provide fuel for the Tarapur nuclear plant when the Canadians decided to cancel the supplies. For the uninitiated, France was the first country which took the lead to put an end to India’s three decades of nuclear isolation and inked a civil nuclear agreement way back in September 2008. Sarkozy considers Indo-French partnership not only essential but strategic for global and regional affairs and this presents India an opportune time to hard sell its concerns and transforms the existing buyer-seller relationship in the defence sector to that of joint production and one which enables transfer of cutting-edge technology. A give and take relationship amidst geo-political realms is what India must aim for.
As France evinces a growing political and strategic interest, India should use the visit of Sarkozy to reciprocate the same with equal fervour. India by now should have realised that France is a key player in formulating EU’s policies and strategies and hence it should use the strategic co-operative ties with France to ensure that India’s concerns are appreciated and understood in the right spirit. And if all reason fails, then of course there’s Sarkozy’s wife Carla who is apparently planning to spend a full moon night at the Taj. How can one refuse that for anything?
As India does a reality check and is ready to upgrade its defence, it is worthwhile to ponder over what the Indo-French business summit during Sarkozy’s December 2010 is likely to be and what India is likely to gain out of it. Speaking strictly from the perspective of France, the French manufacturers are hopeful that their President’s visit would encourage India to upgrade its Mirage-2000 fighters at an expected cost of $2.1 billion. The European Aeronautic Defence and Space company (EADS) intends to sell its helicopters, in a deal valued at approximately $600 million. The President and his contingent will in all probability seek to promote the French built Rafale aircraft too and will make a strong case to sell it to India for a whopping $12 billion. The two nations are also all set to finalise the contract with nuclear group Areva (which has already signed a MoU for the construction of two reactors at Jaitapur in Maharashtra). Other than the defence sector, the automobile industry is the other one wherein there is a strong probability that announcement of investment to the tune of Rs.30-35 billion could be made. As a matter of fact, after a decade or so, the French automaker Citroen (part of PSA Peugeot Citroen group) is all set to embark upon its Indian sojourn.
So much so for France, but what does India stand to gain by shelling out billions of dollars of defence contracts? A lot more than what India has from mollycoddling up with US. France, for that matter has been a far more reliable friend – be its vocal support of India’s bid for a permanent membership of the UNSC or for that matter the maturity with which it handled its geo-political relation with India post the Pokhran test in 1998, or even its decision to provide fuel for the Tarapur nuclear plant when the Canadians decided to cancel the supplies. For the uninitiated, France was the first country which took the lead to put an end to India’s three decades of nuclear isolation and inked a civil nuclear agreement way back in September 2008. Sarkozy considers Indo-French partnership not only essential but strategic for global and regional affairs and this presents India an opportune time to hard sell its concerns and transforms the existing buyer-seller relationship in the defence sector to that of joint production and one which enables transfer of cutting-edge technology. A give and take relationship amidst geo-political realms is what India must aim for.
As France evinces a growing political and strategic interest, India should use the visit of Sarkozy to reciprocate the same with equal fervour. India by now should have realised that France is a key player in formulating EU’s policies and strategies and hence it should use the strategic co-operative ties with France to ensure that India’s concerns are appreciated and understood in the right spirit. And if all reason fails, then of course there’s Sarkozy’s wife Carla who is apparently planning to spend a full moon night at the Taj. How can one refuse that for anything?
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles
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