NEW DELHI: From defense to cyber security, India and France are in a strategic embrace. France is building India's largest nuclear power complex at Jaitapur and has bagged the biggest fighter aircraft deal for Rafale. The new French president, Francois Hollande, on his maiden visit to India tells The Times of India in an exclusive interview that France is also becoming one of the top investors in India. Why have you chosen India for your first bilateral visit in Asia?
Quite simply because our relations with India are a priority for France.
For a long time now, we have been building a relationship of trust between our two countries. Our partnership is unique. It is built on a solid foundation, that of values that we share: democracy, attachment to sovereignty, a never-waning interest in each other's culture, the will for social progress. Our constitutions affirm that we are secular republics.
India is an emerging power. Its place matters and will increasingly matter on the international scene. France had understood this in 1998, when we concluded the first strategic partnership with India.
France and India have developed increasingly closer cooperation on very sensitive matters, such as defence, counter-terrorism, space, civil nuclear energy, and henceforth — we decided this on Thursday with Prime Minister Manmohan Singh — on cyber security and against drug trafficking.
Are you satisfied with the pace of negotiations with India on Rafale? Is the deal finalized and if not, why not?
Rafale is a major project for India and France. This exceptional aircraft was selected after a transparent and stringent competition. This project will pave the way for unprecedented industrial and technological cooperation between our companies and our countries over the next 40 years. Agreement on all details of the modalities necessarily takes time. So it's hardly surprising that negotiations have taken over a year for a contract of this scale. I have strong hopes for their positive conclusion. I have kept in mind what minister Salman Khurshid said in Paris, "A good French wine takes time to mature and so do good contracts." This time is coming.
We understand that there is no commercial contract due to be signed for the nuclear reactors at Jaitapur. When do you expect this to happen? Do you still have concerns about the nuclear liability law in India?
Discussions on the Jaitapur project are progressing well and we are determined to conclude them.
Much progress has been made: after the Fukushima disaster, it was the duty of each one of us to be assured anew of the safety of the nuclear reactors. An independent agency conducted the safety assessment in France with the utmost rigour. And it concluded that the EPR has the highest safety levels. We had a transparent dialogue with the Indian authorities on this matter. The best guarantee for India is that, in France, we are building the same reactor as those planned in Jaitapur.
Regarding civil nuclear liability, we obviously respect Indian law. It is the sovereign decision of a country that has witnessed catastrophes like the Bhopal gas tragedy. Civil nuclear energy is an answer, and it also helps cut down on greenhouse gas emissions and strengthen energy security.
India has supported the French military intervention in Mali. But what is the endgame there, given that al-Qaeda fighters are now engaging in suicide attacks?
France responded to Mali's request with the support of the international community. We could not let a new haven for terrorists to develop at Europe's door. Terrorism is a global threat that recognizes no borders. The men, their weapons, and their ideology of hate travel from region to region, and they pursue the same goals.
Threats remain in Mali, despite all the progress achieved. But an entire international strategy of reconciliation and development must be put in place, with the deployment of the African force, in accordance with the resolutions of the United Nations Security Council.
I would like to salute India's support over the past few months: it voted in favour of three resolutions of the Security Council on Mali in 2012, and is even the co-author of the second. India also announced a very substantial financial contribution for Mali as well as the African force.
What is your commitment to Afghanistan after 2014?
France will remain at Afghanistan's side. We withdrew our combat troops in end 2012, but we remain committed to the Afghan people in the long term. We signed a Friendship and Cooperation Treaty with Afghanistan, which will translate into a significant enhancement of our civilian cooperation — over 50% — in the coming three years. It will also contribute to the training of Afghan security forces.
Inter-Afghan dialogue is the responsibility of the Afghans themselves. France is deeply attached to the three conditions set for reconciliation: respecting the constitution, abjuring violence, and severing all ties with terrorism.
There are continuing reports of differences between France and Germany on the austerity question. What does this say for the future of the eurozone?
We act in close consultation with Germany on the situation in the eurozone and its future. Today, as yesterday, Franco-German friendship is at the core of European integration. This also applies to the consolidation of the euro zone, adherence to budgetary discipline and competitiveness.
While India and France have a robust strategic partnership, this does not appear to have translated into a deeper economic relationship. In fact France trails other European countries in trade with India. How do you plan to correct this?
In France, as in India, we wish to boost growth. The development of our bilateral trade must contribute to that goal. But to state things frankly, Indian customs duties are very high in certain areas, such as the food-processing sector. The entire challenge of the Free Trade Agreement under discussion between the EU and India is to give fresh impetus to our trade both ways. It should be balanced and mutually beneficial.
Bilateral investment levels are quite low between India and France. How can we change this?
French companies invest a lot in India! The pace has been a billion euros per year since the past two years, with other projects on the horizon. French companies employ more than 2,40,000 skilled Indian workers.
France is thus among the top investors in India. It is a reflection of our confidence in your country's future. Our companies also invest in research — I will, in fact, be visiting a French R&D facility in Mumbai — and professional training. I'm proud that they are thus laying the groundwork for the future.
As for Indian companies, they are welcome. They will find the best technologies in France, very good infrastructure, workforce of exceptional quality, plus, the heart of the world's largest economy — that of Europe.
France has long supported India's candidature as a permanent member of the UN Security Council. How do you think the institutions of global governance can change to reflect the 21st century world order?
Creating a global order for the twenty-first century means resolving as best possible the current global challenges: fighting terrorism, the proliferation of weapons of mass destruction, drug trafficking, as well as preserving the environment and combating climate change.
We need India, its message, its strength for resolving these major issues. France and India were there together for the foundation of the G20. And, France supports India's candidacy to become a full-fledged permanent member of the United Nations Security Council. It will also end the injustice of India not being able to join the Council in 1945.
