8 India-France Relations

Professor R.S. Yadav

Structure of the Module

1. Introduction

2. Objectives

3. Bilateral Relations 3.1 Period of Neglect

3.2 New Beginning

3.3 Emerging Cooperation

3.3.1 Economic and Cultural Cooperation

3.3.2 Strategic Collaborations

3.3.3 Political Understanding

3.4 Strengthening of Ties

3.4.1 Bilateral Trade

3.4.2 Direct Investments

3.4.3 Cooperation in Science& Technology

3.4.4 Defence Cooperation

3.4.5 Political Partnership

4 Conclusion

5. Important Questions

6. Suggested Readings

1. Introduction

India’s relations with France represent both continuity and change. Like Britain, France also had colonial relationship with India. But unlike Britain, it also shares present process of modernization with India in the form of new avenues of cooperation in the fields of trade, economic and technical assistance, science and technology, nuclear and defence. However, their relationships have to pass through various phases of ups and downs during these years. Even at present, though both are engaging each other through cooperation in number of areas, yet it could not attain the expected heights. Consequently, relations between them do no figure prominently due to certain prevalent irritants against each other. A systematic study of their relationship could be well analyzed taking into consideration of both cold war and post-cold war developments. Besides, these can be evaluated in the light of multilateral and bilateral compulsions and interests of both the states. To distinguish the changing perspective during cold war and post-cold war periods a comparative assessment of policies of the two countries is made. Here the new concerns of trade, FDI, joint ventures, defence cooperation etc. are made to find out the contemporary perspective of their foreign policies. Moreover, issues like non-traditional threats, particularly terrorism and its implications are made to understand the depth of relations both have reached at this juncture.

2. Objectives

In this module an effort has been made to evaluate India-France relations since its inception. Even historical perspective in their relations is given so that a proper understanding about their ties can be made. At the outset it has been explained that why in the beginning both followed a policy of neglect towards each other. Their compulsions and interests in this matter have been elaborately discussed. Later on, reasons for the transformations in their ties are explained so that changed context of their relations can be known.

3. Historical Perspective

At the time of India’s independence, France was having some part under its colonial rule which it has captured since 1674. These territories include: Pondicherry (1674), Chander Nagar (1690), Mahe (1721), Yaman (1723) and Karaikal (1733-39). These colonial possessions and divergent foreign policy orientations pursued by India and France prevent the emergence of warm relations between the two.

Similarly on the issue of transfer of colonial territories both had different perceptions regarding each other. On the one hand, France viewed that any territorial exchange cannot be done without the consent of the people concerned. It was because vide article 2 of the French constitution it has been made clear that, “No cession, no exchange, and no addition of territory shall be valid without the consent of the populations concerned.” But from Indian point of view consent of people is very sacrosanct when any territorial transformations are made. It is only on this basis it claimed all colonial territories possessed by foreign powers even after its independence. But it must be admitted that France did not created much problem on this issue, rather it cooperated India to resolve this issue with much sensibilities. Though in case of Chander Nagar, the transfer was made through plebiscite, but in regard to other French territories it was finalized by a treaty of transfer signed on 28 May 1956 and became operational after its ratification in 1962. However, the resolution of territorial issue did not bring the two countries closer to each other as they continue to differ in their foreign policy perspectives.

4. Bilateral Relations

4.1 Period of Neglect

Since independence basic thrust of India’s foreign policy has been to oppose colonialism, imperialism and racialism under the broader rubric of its foreign policy of non-alignment. Whereas France not only supported the case of colonial power, but it was itself following this policy regarding possessions of territories in the Third World. Besides, India adopted the policy of opposition to military alliance systems, whereas France openly supported the military blocs and joined NATO as part of its strategy to support western military alliance system. Thus, basically orientation of India’s foreign policy had been towards Afro- Asian countries, whereas France was much leaning towards Europe in terms of its foreign policy goals.

As a result of the above difference in outlooks, both took contradictory stand on different issues of international politics. For instance, in case of prevailing movement for freedom struggle in Indo-China region, India supported their struggle for independence, whereas France tried hard for the perpetuation of its own rule. Similarly both took opposite stand on the vacation of colonial possessions in Morocco, Tunisia and Algeria by France. Even on the issue of nationalization of Suez Canal by Egypt in 1956, India vehemently opposed the Franco-British policies. It supported the Egypt’s cause during this crisis. Thus during the first decade both followed an opposite outlook in their foreign policies which led them away from each other. Moreover, both did not give much importance to each other in their foreign policy calculations.

4.2 Period of New Beginning

Coming of De Gaulle to power in 1958 in France, to some extent, marked the new beginning in India-France relations. This change had been there due to changed orientation of the new leader on various issues of war and peace. This changed attitude of France is reflected at two levels: one at the level of its policies towards global levels; and, second its new inclinations towards India. At the global level, President De Gaulle tried hard to bring Paris away from the integrated military structure of the NATO. He was instrumental in the removal of NATO’s military bases in France. Besides, during his tenure, France also became critical of the USA’s policies of aggression in Southeast Asia. In the context of Arab-Israeli conflict, France criticized the Israeli occupation of Arab territories in West-Asia. He also made effort to start the peace process not only in Europe but also among the superpowers. Moreover, France’s withdrawal from Algeria in 1962 earned for it high respect among the countries of third world. Hence, this changed attitude of France, attracted many Third World countries in general and India in particular.

In the context of India, new regime in France, took certain initiatives which brought them closer to each other. Besides, bilateral compulsions of the two facilitated this process. At this juncture India was isolated both from major powers and Afro-Asian States. After the war with China, India felt attracted towards a country with which it has not territorial problems. It has also been viewed that despite divergent ideological moorings between India and France, De Gaulle, on number of foreign policy initiatives resembles to that of the policies of Jawaharlal Nehru. The signing of territorial transfer treaty between India and France in middle of 1962 facilitated the process of friendly ties between the two.

As a result, a treaty enhancing economic and cultural cooperation, between the two countries, was signed. Through these improved economic ties both tried for expansion of trade and other economic activities. Both established a joint commission to review the obstacles to facilitate free flow of trade between the two countries. These initiatives resulted into positive way and led to tremendous increase in the bilateral trade between them. The main items which India exported to France were — hides and skins, precious and semi-precious stones, jute manufacture, cashew kernels, vegetable products and sandalwood oil. Whereas major imports from France have been-machinery, fertilizers, iron and steel, transport equipments, pharmaceuticals and chemicals.

However, it is also a fact that despite the increase in trade volume it was not of much beneficial and significant for India. The latter continues to figure very marginally in trade of France. It constituted only 0.8 percent of France’s total trade with the world. France’s share was also 1.2 percent of India’s global trade. The trade practice between them was very asymmetrical as it was negative in favour of India. Moreover, India’s trade with France had mostly been in terms of supply of raw materials, where as France mainly exported manufactured goods and fertilizers during this period.

Above emerging economic and cultural cooperation, however, do not rule out the prevalent differences over the foreign policy approaches of the two countries. De Gaulle’s recognition of China just 14 days after the Sino-Indian war was serious setback for emerging Indo-France relations. This not only facilitated support for China vis-à-vis India, but also followed suit by number of states in Africa who were earlier under France rule. In Asia, France considered China as “France of Asia” which automatically marginalized India in the strategy of former. Besides, as compared to France’s commitment to NATO, SEATO and EEC, its response to war in India was very slow. Moreover, both the countries followed divergent approaches in their foreign policies. For instance, France’s policies were based on the principle of power, whereas India’s policy has been based on non-alignment. Even regarding the role in the United Nations, both countries differed with each other. Thus, due to international milieu and exigencies of global politics, De Gaulle could not adopt the similar outlook on foreign policy to that of Nehru. Hence, Indo-France relations could not become as warm as it looked apparently. Rather only a new beginning was made for some short period.

4.3 Emerging Cooperation

These two decades up to the end of cold war, India-France relations were directed towards enhancing cooperation between them. Serious efforts have been made by both of them to boost up their economic, political and strategic ties. This multilateral cooperation can be well understood by analyzing three broad streams of their emerging relations – (i) Economic Cooperation; (ii) strategic collaborations; and (iii) political understanding.

3.3.1 Economic Cooperation :

Through numerous bilateral activities both are increasing their economic cooperation during this period. France has been very liberal in giving loans and grants to India during this period. France signed MOUs and various other agreements to cooperate with India in number of important sectors. It offered to help India in the sectors of energy, power, oil exploration, coal, nuclear and space. These are very critical areas for the development and growth of basic infrastructure in India. France also offered to establish joint ventures not only in India, but also in third country as well. In times of crises as well, it offered India the help of food stuff and other essential commodities. Similarly, to do away with the serious draught in India, it came out with a credit worth 40 million francs in the form of export of rapeseed oil to India. Some projects in India were either given loans or were jointly completed by France. For instance, on 12 August 1981, Oil and National Gas Commission, (ONGC), India, signed a four-year contract with French Oil Company, Compagnie Francaise Des Petroles(CFP) for the development and exploration of hydrocarbon reserves at Bombay High and discovering promising structures in its vicinity. In this case even technology transfer was also allowed by France. Similarly, an aluminium project was signed by France with a government owned company NALCO in Orissa on 9th January 1981. Two units of its with a capacity of 1,00,000 tonnes each, started production in 1986 and reached its full capacity in 1987.

To institutionalize the smooth working of their cooperation, both countries established an “Indo-France Study Group” in 1973. Main objective of this group is to provide suggestions and inputs for the policy makers to boost their bilateral economic cooperation. On the basis of suggestions made by this group number of agreements were signed by both in the areas of off-shore drilling for oil, power generation and transmission, mining and utilization of coal and in establishing ventures in third countries. Besides, in 1984 under the auspices of Federation of French Industries and Commerce (CNPF) and Federation of Indian chambers of commerce and Industry (FICCI), both have established a Joint Business Council (JBC) for furthering economic and industrial cooperation between India and France.

Both, India and France came closer to each other not only due to bilateral cooperation, but also because of latter’s changed perceptions towards the problem of third world. As chairperson of Non-aligned Movement (NAM), when Mrs Indira Gandhi visited France in 1983, she found France closer to the acceptance of some demands of the countries of the South. Earlier, during his visit to India in November 1982, President Francois Mitterrand declared his country’s support for third world on the issues of reform in international monetary system, guaranteed prices for raw materials, food self-sufficiency, energy independence and increase in resources of international institutions like IMF and World Bank. He also assured his determination to contribute 0.7 percent of GDP to the developing countries. France reiterated the similar commitment during Rajiv Gandhi’s visit to France on the occasion of the bicentennial of the French Revolution in 1989. Thus, both hold common opinion on number of issues concerning developing world.

Beside bilateral and multilateral cooperation, both are building goodwill between them through the strengthening of cultural ties. Since the beginning of this period France is encouraging education, cultural and scientific exchange programmes between the people of two countries. To boost up these ties both organized ‘Festival of India’ (1985) in France and ‘Festival of France’ (1989) in India. Through the holding of these festivals, bonds among the people of two countries were strengthened. Besides, during the visit of Rajiv Gandhi in 1985, France agreed on the project of ‘cleansing Ganga’ which is not only a technological cooperation, but also represents spiritual dimension in India. During the celebrations of Festival of India, water of ‘Ganga’ was poured in river ‘Seine’. It represented and symbolized the merging of the two great cultures and the close links between the two countries. It was also agreed upon that an Indo-French Study Centre will be opened in New Delhi to make people of India know more about the culture and people of France. Film Media has been very powerful channel of influencing the culture of each other in both the countries. To acknowledge this reality, during his visit in 1989, President Francois Millerrand, bestowed the highest French honour of ‘Commander of the Legion’ to Satyajit Ray. Thus, both countries have tried hard to bring the people closer to each other.

4.3.2 Strategic Collaborations – Strategically speaking India emerged as a regional power in South Asia after the end of India – Pakistan War of 1971. But in defence preparedness, it is still dependant on the supply of dreapins from erstwhile Soviet Unions. But now India was planning for diversification of defence purchase. This was more seriously realized after the coming into power by Indira Gandhi in second term, i.e. in the decade of 1980s. In that context, France is a major supplier of arms in the developed world. Given the emerging economic and cultural cooperation, it was inevitable for India and France to come closer to each other in defence sector. Thus, both the countries realized each others’ compulsions and initiated process of collaboration in the area of defence, which was explicit through their numerous agreement during this period.

In September 1976, France announced the offer to set up a plant in India to manufacture Mirage F-1 fighter aircraft. Initially, this plant was to assemble the aircraft and progressively it started manufacturing sophisticated parts up to 100 percent. This plant was established not only to meet the requirements of Indian Air Force but also to manufacture some sophisticated parts for the French needs. France also concluded an agreement with India for the manufacture of a single engine multipurpose helicopter used at high altitudes in the Hindustan Aeronautics at Banglore. In 1982, France agreed to sale 40 Mirage-2000 fighter aircrafts to India. Later, both agreed to product of 110 Mirage 2000s over and above the earlier supply. This Mirage 2000 was to be fitted with the advanced M-53 P-2 upgraded jet engine which would give the Mirages a Mach 2.2 performance. This would be far superior to the Mach 1.9 capability of the F-16 jets of the USA. Besides, the Mirage-2000 could be ‘unbeatable’ at high altitudes and could not be intercepted by F-16. France also agreed to supply of latest long range air-to-air and infra-red seeker missiles to India. India has finalized the purchase of 530-D long range interception air-to-air missile and the new Magic-2 missiles. These are considered superior to Pakistan’s acquisition of Side winder from the USA.

Beside the supply of fighter aircrafts and missiles, France also resolved India’s crucial problem of supply of enriched uranium for Tarapur. In 1982, at the intervention of President Mitterrrand, France agreed to supply India enriched uranium for Tarapur nuclear power plant without insisting on a “pursuit and perpetuity” clause. France will supply uranium within the framework of the Indo-US Agreement of 1963 and trilateral agreement of 1971 between India, USA and IAEA. It will be in force as per the original agreement, i.e. upto 1993. Later on in 1990, France offered to sale two 1000 MW nuclear reactors to India

4.3.3 Political Understanding – The above strengthening of economic and strategic ties are rooted in the deeper political understanding among the political leaders of the two countries. They have common perceptions on number of bilateral and global concerns. This commonality of views developed due to increased visits of leaders of both the countries to each other’s nation. Through these visits, both elites could got the opportunities to understand each others bilateral concerns, as well as problems faced by the developing countries. They could also able to generate commonalities of views on some serious global issues. Sometimes, these visits were marked by some emotional overtones as well which created further closeness among two countries. Similarly, some political gestures do communicate the warmth and understanding among the two countries. This emerging political understanding resulted into sound bilateral cooperation between them in very sensitive and critical areas like defence, space, nuclear, aviation etc. Besides, both leaders became well aware about the emerging differences and economic irregularities among the countries of North and South. They also realized the need for global cooperation on environmental and economic issues.

However, despite cooperation in numerous areas, some problems still exist between them. Throughout these years, bilateral trade remained favourable towards India. Besides, foreign direct investments from France to India have been very low. India also failed to absorb all grants and loans extended by France towards it. Despite these minor problems, no serious irritants were there between the two.

4.4 Strengthening of Ties

Cooperation between them got consolidated during the post-cold war era. This has been reflected in the form of three fold relationships – (a) economic ties; (b) defence cooperation; (c) political understandings

4.4.1 Bilateral Trade – In this post-cold war scenario, India has viewed France as an important source of technology, FDI, and strengthening linkages with the European Union. France, on its part, have been active in developing cooperation in engineering and construction and other such areas unfolded in the wake of India’s adoption of process of liberalization and economic reforms. As a result, during the first decade after post-cold war, bilateral trade between them increased tremendously. By the Year 2009, total bilateral trade went up by 99 percent, whereas India’s exports increased up by almost 167 percent. Total bilateral trade between the two reached at 15-96 billion by the year 2014.

India’s import from France Comprised mainly equipments and machinery, whereas its export consisted of a wide range of goods and services including both traditional and nontraditional items. Traditional items like garments, lather, textiles, raw cotton and yarn and marine exports constituted a major share, Non-traditional items such as automotive components, electronic and rubber components, chemicals and dye-stuffs, pharmaceuticals, granite, consumer durable etc. shown promising growth. An important element in their bilateral trade has been that balance of trade has been in India’s favour since 1994 to 2005. But this position could not be maintained after that. In comparative terms, France is India’s fifth largest partner in the EU (after the UK, Germany, Belgium and Italy).

4.4.2 Direct Investments – France is the 9th largest investor in India. Cumulative approved French foreign direct investments (FDI) have been Rs. 57422.5 million during 1991-2001. More than 360 Indo-French joint ventures have been approved till 2001. There is a tremendous scope for enhancing these collaborations. Key sectors of interest to France include power, hydro-carbons (petroleum and petroleum products), telecommunications, auto parts, agro-industries, drugs and pharmaceuticals and environment. The institutional arrangement for promoting investments exists in the form of Bilateral Investment Protection Agreement (BIPA) and an agreement on Avoidance of double taxation.

4.4.3 Science and Technology Collaborations – Indo-France bilateral cooperation in science and technology is regulated by overall umbrella agreements between the two governments i.e, Indo-French Centre for the promotion of Advanced Research (IFCPAR), also known by its French acronym CEFIPRA. Besides, agreement between Indian ministries/organizations and their French counterparts, dealing with specific areas of science and technology; and institution to institution agreements are also updated. Through this cooperation, India and France are collaborating in the field of biotechnology, applied physics, networking of scientific institutions, space, disaster management, space launching programmes etc.

4.4.4 Defence Cooperation – Indo-France defence cooperation exists since 1980s, when India started its diversification of defence purchase. Mirage aircrafts, missiles and number of other smaller defence equipments were purchased during that decade. In the present, France is gaining more importance due to problems of spares and supply of armaments from erstwhile Soviet Union after its disintegration. Hence, France is not only regular visitor to India’s annual air shows, but also helping it to develop its indigenous defence manufacturing base.

4.4.5 Political Partnership – The above economic and defence cooperation are being building on sound political understanding emerging between the political elites of both the countries. On the one hand, this understanding between them is developing through the emerging India-France economic cooperation in the post-cold war era. Besides, large number of mutual bilateral visits of the dignitaries of the two countries has consolidated this process.

These political understandings have been strengthened by the ‘Indo-French Joint Commission for cooperation in culture, education and science’. Institutional exchanges have been promoted between India’s ICSSR, UGC, ICHR, ICPR, ICMR etc. with their counterparts in France. Besides, the participation in film festivals have consolidated these bonds of understanding further. Even scholarships are offered by both the countries for mutual exchange of scholars between the two countries. Establishment of Indo-French Forum in 1998 has strengthened their ties further. Even the presence of 60,000 Indian Community in France has created close contacts between India and France. Thus, political relationships strengthened by socio, cultural and humanitarian ties and further brought the two countries closer to each other. These closer ties, alongwith the emerging challenges of international terrorism and to develop a multipolar world order, have brought these two countries closer to each other. However, huge possibilities for development of cooperation in the sphere of economic, defence, space, science and technology are still open for them. During the last visit of Prime Minister Modi to France (10-11 April 2015) both countries signed agreements to boost cooperation in multiple areas. Both signed 20 agreements covering cooperation in the areas of nuclear energy, defence, climate change, smart cities, terrorism, economic, transport, people to people contacts, heritage/culture, education, science and technology, health, sports etc. Both also reaffirmed their commitments to the strategic partnership and agreed to further deepen their bilateral ties based on shared principles and values relating to democracy, freedom, rule of law and human rights. Both also supported reforming in the UN system, including democratization of security council.

5. Conclusion

Thus it can be concluded that due to colonial legacies and territorial adjustment problems, India and France did not begin their relations on warm notes. Later the pursuit of divergent foreign policy orientations by them led them away from each other. However, this neglect of each other was dispensed with the coming of De Gaulle to power in France. The changed perceptions of new regime regarding bilateral and global issues brought India and France closer to each other. Despite these relations, due to differences on certain issues like China, global issues, defence parts etc. both could not become more friendly to each other. However, a new beginning has already been made during this period. Next two decades led to the consolidation of their ties due to economic and cultural cooperation, strategic collaborations and political understanding. In the context of post-cold war world order, new changes at global, regional and bilateral levels compelled them for continued cooperation between them. However, a large potential to improve their relations still hold ground.

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Suggested Readings

a) Books/Articles

A. Appadorai and M.S. Rajan, India’s Foreign Policy and Relations, New Delhi, 1981.
M.S. Rajan, India in World Affairs, 1954-56, Bombay, 1964.
H.S. Chopra, “India and the Politics of the Major EEC Powers,” International Studies, 17(3-4), July-December 1978.
French Statistics Office, cited in http://www.amb-inde.for/Indo-frenchl.htm.
http://www.meader.nic.in/foreign/ind-france.htm.

b) Web Links:-