Top Banner
UK 4 GBP - EUROPE 8 UAE: 18 AED - KSA: 18 SAR INDIA: 200 INR - CAN: 9,95 CAD DOM: 7,20 - A: 7,50 Oman RO: 1.8 USA: 8 USD OTHER COUNTRIES 9 ISSN: 1950-3482 Media India France-India Special 11 Issue No. 11, Special France-India 2013 INDO-FRENCH PARTNERSHIP Kamal Nath: Minister of Urban Development Interview Lead Story ...................................... ...................................... Dossier Better with the years Defence relationship BIZ@INDIA URBAN DEVELOPMENT URBAN DEVELOPMENT URBAN DEVELOPMENT URBAN DEVELOPMENT URBAN DEVELOPMENT CULTURE CULTURE FASHION TOURISM TOURISM DEFENCE DEFENCE ENERGY ENERGY SUSTAINABILITY SUSTAINABILITY IT CINEMA CINEMA EDUCATION EDUCATION CINEMA FASHION EDUCATION TRADE TRADE ENERGY TRADE EMPLOYMENT FOOD PROCESSING FOOD PROCESSING FOOD PROCESSING DEFENCE TOURISM IT FOOD PROCESSING ENERGY INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY
104

BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Mar 28, 2016

Download

Documents

MIG has published special issue of Biz@India to mark the arrival of French President Francois Hollande to India on his first visit. The issue has covered almost all the aspects of relationships - beginning from strategic, defence and business to education, culture, tourism and cinema.
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

UK 4 GBP - EUROPE 8 €UAE: 18 AED - KSA: 18 SARINDIA: 200 INR - CAN: 9,95 CADDOM: 7,20 € - A: 7,50 €Oman RO: 1.8USA: 8 USDOTHER COUNTRIES 9 €ISSN: 1950-3482

Media India

France-IndiaSpecial

BIZ@INDIA

11

Issue No. 11, Special France-India 2013

INDO-FRENCH

PartnershiP

Kamal Nath: Minister of Urban Development

Interview Lead Story

......................................

......................................

DossierBetter with the years Defence relationship

BiZ@inDia

URBAN DEVELOPMENT

URBANDEVELOPMENT

URBAN DEVELOPMENT

URBAN DEVELOPMENTURBAN DEVELOPMENT

CULTURE

CULTURE

FASHION

TOURISM

TOURISM

DEFENCE

DEFENCE

ENERGY

ENERGY

SUSTAINABILITY

SUSTAINABILITY

IT

CINEMA

CINEMAEDUCATION

EDUCATION CINEMA

FASHION

EDUCATIONTRADE

TRADE ENERGY

TRADE

EMPLOYMENT

FOODPROCESSING

FOODPROCESSING

FOODPROCESSING DEFENCE

TOURISM

ITFOODPROCESSING

ENERGYINFORMATION TECHNOLOGY

INFORMATION TECHNOLOGY

INFORMATION TECHNOLOGY

INFORMATION TECHNOLOGY

Page 2: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP
Page 3: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

DEVELOPMENTURBANDEVELOPMENT

URBAN DEVELOPMENT

DEVELOPMENTURBAN DEVELOPMENT

CULTURE

CULTURE

FASHION

TOURISM

TOURISM

DEFENCE

DEFENCE

ENERGY

ENERGY

IT

CINEMA

CINEMAEDUCATION

EDUCATION CINEMA

FASHION

EDUCATIONTRADE

TRADEENERGY

TRADE

EMPLOYMENT

FOODPROCESSING

FOODPROCESSING

FOODPROCESSING DEFENCE

TOURISM

FOODPROCESSING

ENERGYINFORMATION TECHNOLOGY

INFORMATION TECHNOLOGY

TECHNOLOGY

INFORMATION TECHNOLOGY

EDITORIAL

We welcome our French and Indian readers of this very important issue of Biz@India to mark the arrival of French President Francois Hollande to India on his first visit to India. The fact that Hollande has chosen India as his first destination in India, coming nearly 10 months after his electoral victory indicates the importance attached by France to its ties with India, a relationship which has only become stronger, better

and more widespread over the years.Like other visits by French Presidents to India, this one too has the objective to take the bilateral relationship to

the next level. Hollande will be accompanied by several of his key ministers - external affairs, commerce, defence, transport, science & technology etc, and also a very strong business delegation of over 60 leading French companies. One can definitely anticipate that the business ties between the two nations will finally begin to reach a size that is of a similar level as the excellent strategic, political and cultural relations. Overall, the Indo-French ties could not have been any better in certain spheres, while in others they are clearly strengthening. A few headaches do remain and the two countries do not necessarily see eye to eye on every issue, yet the relationship has been strong enough to keep the irritants in the right perspective.

In this issue, we cover practically all aspects of the relationship or partnership – beginning with strategic, defence and business to education, culture, cinema, tourism and a very important new segment of Indian or French nationals working and living in these countries. While strategic and defence ties remain very strong and have become even better over the last few years, the weak link of the chain lies in business, especially bilateral trade and investment, where both Indian and French companies remain wary of each other. In terms of bilateral trade, France ranks fifth within the EU nations, behind much smaller economies like Belgium, Holland and Italy. The overall figures have hardly moved in the past four years. Even from 2001, the performance is anything but noteworthy. The trade was roughly € Euro 2.7 bn in 2002 and in 2012, it is expected to be just Euro 7 bn. Compare this with say China, Germany, UK or Italy and France pales in comparison. Even though in 2008, the two governments set a target of doubling the trade within five years, the target is certain to be missed by a mile. The fault lies with the businesses on both the sides. But there are some signs of change. The French companies are now eagerly looking at India as a market, as their traditional markets continue to stagger. The number of French companies in India has more than doubled in the last five years and so have the investments. The upcoming opportunities in sectors like food processing, urbanisation, civil aviation, clean technologies etc are just the sectors where the French enjoy an edge over their global rivals and it seems that the two nations may finally begin to do business with each other in a meaningful way.

France and India, both are cultural superpowers in the world and both extremely proud and protective of it. Fortunately, they both see the interest in collaborating and promoting each other’s culture as well and as a result, culture is one of the strongest bonds in the Indo-French ties and the two countries take care to continuously nourish this vital link by mounting large-scale nationwide festivals. After the remarkable success of the first editions of Bonjour India and Namaste France, the two countries are now preparing to launch the next edition of these festivals that celebrate art and culture. Bonjour India has already began and are sure you will get to hear and see much more of this in the weeks ahead.

The civil society and people to people contacts are very important in any relationship and here again we are pleased to note that the French and Indian people are very well linked and networked across various domains. More students, from India and France, choose to study in each-other’s universities, more Indians are working in France and vice versa and a lot of French NGOs have been very active in India for many years. We just hope that when it is time for next bilateral heads of governments or states from France and India to meet, which is likely only after the elections in India next year, that the business community would have gotten their act together and pushed the bilateral trade figures to a more fair and reasonable level.

BIZ@INDIA Special France-India 2013 03

Page 4: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Message

The rapid development of Indian economy in the recent years has now made India the fourth largest economy of the world

in purchasing power parity GDP terms. This growth has been based on our adherence to democratic norms, and the rule of law and has been driven largely by domestic demand which has been fuelled by India’s favourable demographic profile. A rise in income levels and aspirations of India’s young population and a geographic shift in the distribution of population and consumption is driving urbanisation in India. In order to sustain annual growth rates of above 8% and to effectively address the aspirations of our people, India needs to modernise and upgrade its infrastructure with rapid up-scaling of investment in housing, roads, ports, energy generation as well as increasing skill and education provisions and health care for its aspiring millions.2. The expansion of urban infrastructure and urban consumption in India offers an excellent opportunity to French

Special France-India 2013 Biz@india04

businesses which are world leaders in this field. Between 2012 and 2017, over US$ 1 trillion is expected to be invested in infrastructure sector in India, a large part in form of public-private partnership (PPP) which provides an excellent modality for the French firms to invest in and be a part of India’s growth story. The commitment of Government of India to providing continued dynamism to India’s economy was reflected in a series of recent reforms including the raising of foreign direct investment (FDI) limit to 51% in multi-brand retail. This sector again offers new avenues for French firms to enter the expanding Indian market building on their experience and expertise in a whole set of downstream activities including retailing, logistics, agro food processing, etc.3. The close cooperation between France and India is encouraged by deep and longstanding political ties between two countries and our ongoing strategic cooperation in sectors such as civil nuclear energy, aero space and

defence. The shared goodwill for each other’s cultural diversity also enriches the relationship.4. The publication of this special issue of BIZ@India magazine, which focuses on some very important verticals such as urban infrastructure, food processing, information technology, education and tourism for cooperation between India and France, on the eve of a visit by the President of France to India, is timely. We, in India, are glad to welcome President Hollande on his first visit to India and are confident that this visit would energise and give new dynamism to our excellent bilateral relations. President Hollande will be accompanied by a high-powered business delegation and we expect the visit to translate into greater interaction and business between Indian and French companies. I hope that this special edition of magazine will serve a useful purpose in informing and highlighting some aspects of India-France relations for the interested readers. n

Rakesh Sood, Ambassador of India to France

Page 5: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Message

In a few days, the President of the French Republic, Mr. François Hollande, will come to India for a State Visit, his first bilateral visit to

an Asian country since his election. Indeed, France and India enjoy an exceptionally warm relationship, which is the fruit of deep affinities, common democratic values and the unwavering trust between the two countries since the independence of India. An intense cooperation was established in areas as sensitive as defence, security and energy under the strategic partnership initiated in 1998.In 2012, the Rafale has been selected to equip the Indian air forces. The contractual discussions are on going and this contract will trigger unprecedented levels of technological and industrial cooperation. It will cement our defence relationship for the decades to come. France and India co-develop major weapons systems and, over the years, we have moved from a commercial relation to codevelopment and co-production, with transfer of technology. We also have an intensive and mutually-beneficial cooperation in many strategic fields, such as defence cooperation, nuclear power plants, space programs such as joint satellite launches, counter-terrorism.With the support of both Indian and French people, France and India will take their relationship to even higher heights across the board, in a long term perspective. Over the last decade, our exceptional relations have been expanding fast in all fields, including economy, science, university cooperation, culture.In the economic field, France has had a long-established engagement: someof our companies, such as BNP Paribas or Alstom, have been in India for over acentury now. The investment flow has been dramatically increasing for the past ten years, irrespective of the global economic environment. It is an engagement in the long term, which follows the ever-increasing level of cooperation between the two countries. France is among the topmost investors in India. In parallel, France offers one of the most open and attractive countries to Indian investors, with highly qualified workforce, the most attractive research tax credit in Europe and high quality infrastructure.

In the field of research, a very promising year lies ahead of us, with France being the guest of honour for the next Global Technology Summit in October in Delhi. In our two countries, the same tribute is paid to the work of scientists and engineers. France has invested in all high-technology sectors and promotes a similar European approach. Space, defence, transport, energy and urban services are some of the areas in which France has promising cooperation, especially with India. The Indo-French Centre for the Promotion of Advanced Research, IFCPAR, is a benchmark in successful scientific and technological cooperation. Many countries have tried to emulate the model. It involves equal partnership between the two countries for financing path-breaking research and has resulted in an array of successful joint research initiatives. In addition, French groups that have invested in India develop large-scale state of the art research and technology centers which boost the overall scientific standards in India.In the field of higher education, exchanges have been developing fast. Many Indian students now look to France and Europe for higher education options. There has been a spurt of 40 per cent in the number of students going to study in France from India in the last three years. Today, almost

3,000-odd Indian students opt to study in France every year in courses that range from engineering, management, law, economics, international affairs, language, and fine arts to architecture. France offers 700 English-speaking courses. There are also more and more French students coming to India on exchange programmes to several institutes, including several Indian Institutes of Technology, Universities of Delhi, Pune, Madras, Hyderabad, Jamia Millia, JNU, and so forth. Higher education in France is an attractive prospect for its quality and affordability, and undeniably it will be a safe and rich cultural experience for a prospective Indian student.This year will also see the great cultural festival Bonjour India 2013. The scale and grandeur of the events planned in 15 cities through some 150-odd showsand over 300 artists and experts is impressive. Bonjour India 2013 will open new perspectives, with joint productions by Indian and French artists working together on landmark events of the festival. We hope such a cultural exchange will help a whole new generation, in India and in France, discover more about each other. Our endeavour is to constantly reach out to a new public and renew the contact with those who already know France. n

BIZ@INDIA Special France-India 2013 05

François Richier, Ambassador of France to India

Page 6: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

..................................................................................................................................................................................................................................................................................................................................................................................................

42 92

Interview Tourism

Education

Cinema

Defence

Business

Lead Story

Kamal Nath, Minister For Urban Development

Amitabh Kant, CEO, DMICDC

Som Mittal, President of Nasscom

France says “Bonjour” to Indian students

Reel enhances real relations

Rafale: A boon for Indo-French diplomacy

Food Processing: Bountiful OpportunitiesVibrant Gujarat 2013Indo-French business: Ready for take-offIndian IT comes of age in EuropeMapping a Success StoryVeolia: Adapting business model to client expectationsAreva: An energetic relationship

Better with the years

81214

86

94

26

384246505354

56

18

30 On the growth path

CultureNourishing links through Culture90

06

France-India Special - February-March 2013

BIZ@INDIA

CONTENT

URBAN DEVELOPMENT

URBANDEVELOPMENT

URBAN DEVELOPMENT

URBAN DEVELOPMENTURBAN DEVELOPMENT

CULTURE

CULTURE

FASHION

TOURISM

TOURISM

DEFENCE

DEFENCE

ENERGY

ENERGY

ENERGY

IT

CINEMA

CINEMAEDUCATION

EDUCATION CINEMA

FASHION

EDUCATIONTRADE

TRADEENERGY

TRADE

EMPLOYMENT

FOODPROCESSING

FOODPROCESSING

FOODPROCESSING DEFENCE

TOURISM

ITFOODPROCESSING

ENERGYINFORMATION TECHNOLOGY

INFORMATION TECHNOLOGY

INFORMATION TECHNOLOGY

INFORMATION TECHNOLOGYDEVELOPMENT

URBANDEVELOPMENT

DEVELOPMENT

URBAN DEVELOPMENT

CULTURE

CULTURE

FASHION

TOURISM

TOUR8SM

DEFENCE

ENERGY

IT

CINEMA

EDUCATION CINEMA

FASHION

EDUCATIONTRADE

TRADE

EMPLOYMENTFOODPROCESSING

PROCESSING DEFENCE

FOODPROCESSING

ENERGYINFORMATION TECHNOLOGY

INFORMATION TECHNOLOGY

Special France-India 2013 BIZ@INDIA06

An invitation to discover France92

History Tracing the french roots in India98

Ecology: From Rafale fighters to eco fightersEmployment: India beckons French skills

French art de vivre calls Indian travellers From Pondicherry to Pudduchery

5866

7680

Page 7: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Welcome to State Bank of India, ParisWelcome to State Bank of India, Paris State Bank Of IndiaWit youh - all the way

Pur n ne Ba ki gNothing else.

We offer wide range of bankingproducts both for corporates and individuals:Syndicated LoanBank GuaranteesLetter of CreditBuyer's Credit/Supplier's CreditNegotiation or Collection of BillsAttractive Deposit SchemeCompany/Individual AccountsSalary Accounts with Carte BleueInternet Banking FacilitiesInstant Remittance to India and Other Countries

State Bank of India is the largest Bank in India (more than 14,000Branches) and has 173 offices in 34 countries around the world. It is one of the largest banks in the world

State Bank of India12-14 Rond Point Champs Elysees, 75008 Paris (Metro: Franklin Roosevelt)Phone: 01 53 77 23 00, Fax: 01 53 77 28 50, Toll free no. 0800740849Emails: [email protected], [email protected]

www.sbiparis.net

Page 8: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Interview

Union Minister of Urban Development Kamal Nath is a consummate politician. Nath has held several challenging portfolios in the government, ranging from environment to commerce & industry and from roads and transport to urban development. Nath has been keen to engaging with the developed countries and their companies who have the expertise, know-how as well as the appetite for investment in this key sector. As the French President Francois Hollande arrives in India, urban development will be one of the main topics on the agenda as France has a unique know how in this domain. Nath is keen to invite the French private and public sector to take the opportunity that the rapid urbanisation of India presents. He met with Ranvir Nayar and outlined the collaboration that he foresees with the French.

• Minister, you were recently in France where you signed an MoU with the French Minister. As President Hollande comes to India, what is the scope of partnership/collaboration between India and France in this key domain of urbanisation?

We signed an agreement wth French government on cooperation in the field of Sustainable Urban Development during my visit to Paris in October 2012. The agreement enables cooperation between the two countries in the areas of mass transportation system, water supply and sewerage systems, disposal and treatment of solid waste, green housing and urban planning. It aims at capacity building of personnel to enhance their capacity for managing the process of urbanization. Under this MoU, it will be possible to exchange

information between the government officials and technical experts in India and France as well as public bodies, states, local and regional authorities and also local self governments in the field of sustainable urban development for improving basic urban services. We have set up a formal mechanism.An Indo-French Joint Working Group will oversee the implementation of this memorandum. It will lay down a programme of action for each year and appraise the achievement there under. Recently, a training on urban planning was organized in Paris for the benefit of urban sector professionals working in different states and organisations.

• Are we seeing adequate interest and participation from the French and other European companies

building the new urban India that you are looking at? What can be done to bring more of them?

As part of institutionalized capacity building effort in urban transport, 5th Annual Conference & Exhibition on “Urban Mobility India: 2012” with theme ‘Smart Mobility’ was held from 5th to 8th December, 2012 in New Delhi. A total of 15 leading French companies like Alstom, Keolis, etc participated in the exhibition. In addition, a total of 45 French nationals (Government officials, Business representatives, Consultants etc.) participated in the event. A seminar on PPP with participation with French companies was held on 17 September 2012. A number of French companies are already working in the urban sector in India.

For instance, in the water supply

Kamal Nath, Minister of Urban Development

Special France-India 2013 BIZ@INDIA08

tiesIndo-FrenchStrengthening

Page 9: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

sector – Veolia Water and Suez Environment; in the Sewerage sector – Degremont and Veolia Water; in Solid Waste Management – Areva Renewable. In the Management of Urban space & Urban furniture – JC Decaux. In the Urban Transport sector also there is French presence. In the Consultancy space there is Egis (Chennai, Kolkata, Cochin and Hyderabad metros) and Systra (Delhi, Bangalore and Mumbai Metro).

In the Operation space Veolia Transport is involved in the Mumbai Metro line 1 and Keolis in the Hyderabad Metro. Alstom is involved in signaling & ticketing, rolling stock and signalisation. Thales is engaged in ticketing. The relations with the French are likely to grow stronger and yield rich dividends in future, given the strong interest that France and French companies have shown in India.

• You recently held a conference on sustainable developments for low cost housing in India. Can you outline for this sector, in terms of what are our requirements and how the government is ensuring that the

urban development taking place is sustainable and meets the global norms for green development?

Housing shortage has always been a major problem over the years in our country since independence. As per the government estimates, the total housing shortage at the beginning of 11th Five Year Plan was 24.71 million of which 98 per cent pertains to the urban poor. The growing urban housing shortage is mainly because of the exponential growth of population, fast rate of urbanization and inadequate addition to the existing housing

stock. The government of India has taken several initiatives for low cost/affordable housing. JnNURM (BSUP component) and Rajiv Awas Yojana are the major initiatives in this regard.Though the low cost housing is the mandate of another ministry, the Urban Development Ministry tries to address the sustainability issues and the global norms for green development through the National Mission on Sustainable Habitat.

• What is your vision for urban infrastructure development in India for the next decade and your plans for its fast track implementation?

India is urbanizing rapidly. This transition, which will see India’s urban population reach a figure close to 600 million by 2031, is not simply a shift of demographics. It places cities and towns at the centre of India’s development trajectory. The increase in population will have pressure on infrastructure and basic services. The urban economy in our country has also witnessed significant growth in recent years, contributing around 60 per cent of the national GDP and more than 80 per cent of the incremental job creation. It is evident that the impetus of growth in the future is also likely to come from the urban areas.

The rapid urbanisation brings varied challenges in the urban sector.These challenges will be addressed through a combination of increased investment, strengthening the frame work for governance and financing, and a comprehensive capacity building programme at all levels of government.

• How is the JnNURM II taking shape? What are the outlines of this project and to what extent will it go in meeting the requirements of not just today but the India beyond 2020? Will we finally catch up the demand-supply situation at the end of the JnNURM II or will we still running behind demand?

JnNURM-I has attempted to trigger investments in the urban

Kamal Nath and the French minister for foreign trade Nicole Bricq sign an agreement

The rapid urbanisation brings varied challenges

in the urban sector. These challenges will be addressed

through a combination of increased investment,

strengthening the framework for governance and financing,

and a comprehensive capacity building programme

at all levels of government

BIZ@INDIA Special France-India 2013 09

Interview

Page 10: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

infrastructure sector and undertake reforms to sustain these investments. Notwithstanding the implementation challenges, it is, and will continue to be a primary source of financing urban infrastructure. The shape and size of JNNURM II is still being decided by the Government. We are hopeful that the size of resources will be enhanced. Further, the coverage is likely to be increased. We also expect the duration of the JNNURM II to be 10 years. We are keen to explore innovative means to raise resources such as monetization of land and would like to encourage Public Private Partnership and Viability Gap Funding. We are hopeful that a large portion of the infrastructure demand would be met through JNNURM II.

• In the present economic scenario in Europe, are you hopeful of engaging European companies in collaborations to improve overall urban infrastructure in India?

Indian market is very large and stable and the urban sector is growing in size and importance with every passing year. European firms are evincing a keen interest in Indian markets and are active in several areas of urban infrastructure across the country.Therefore, the interest in Indian market especially urban infrastructure is going to continue even through this phase of the European crisis.

• The Ministry had also recently signed a MoU with UK on urban regeneration and development. Is it right to say that such kind of partnerships provide an enabling

platform and deepen the engagement in the area like sustainable master planning, transport planning, land economics, heritage management, regeneration capacity building, governance, PPP arrangements?

The MoU between India and UK provides over arching framework for cooperation between two countries on urban regeneration and includes sustainable master planning, transport planning, land economics, heritage management, regeneration governance, regeneration capacity and public private partnership financing agreements. It allows for

exchange of information between government agencies, research organizations, universities and private sector on regeneration efforts in Britain and possible specific urban regeneration projects in India where there is a possibility of cooperation between two countries.

After the signing of MoU in September two high level exchanges between the two countries have taken place through round tables on land economics and master planning.

• India is facing challenges to garner enough resources to match

its urban development requirements. Don’t you think that the country will have to heavily rely on PPP model for resources mobilisation? What steps are you taking to increase the participation of the private sector, Indian or foreign, in this?

It is an established fact that huge investments are required in the infrastructure development in the near future. Yes, private investment in the form of PPP and FDI would be required to mobilise the investment. And therefore, the Ministry has been consistently trying to push private sector involvement in urban sector projects in the form of public private partnerships (PPPs) structured around a robust revenue model (including user charges, targeted subsidies, and viability gap funding).» In fact under JnNURM, we have observed that the sectors most amenable to private sector participation are Solid Waste Management and Transportation, followed by Water Supply and Sewerage sectors. In the 49 PPP projects taken up, the total project cost was Rs. 55 bn (ULB share- 24%), of which the PPP contribution was Rs. 11 bn (20 per cent).» To streamline the system and strengthen the capacity of the ULBs, the Ministry has been issuing detailed guidelines and sector specific toolkits, especially in the areas of water supply, sanitation and solid waste management, to state governments and ULBs for arming them with model financing proposals for PPP, model contract documents, financing mechanisms like use of municipal/pooled bonds etc.» In addition to this, sector-specific model concession agreements would now be put in place for sectors such as water distribution, wastewater management, solid waste management, and urban transportation. » Implementation of reforms such as property tax collection is being done under the JnNURM to improve the financial health of the cities, which would enhance private sector interest and confidence. n

The Metro in Delhi has eased transportation in the capital

After the signing of MoU in September two high level

exchanges between the two countries have taken place

through round tables on land economics and master

planning

Special France-India 2013 BIZ@INDIA10

Page 11: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP
Page 12: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

INTERVIEW

• To begin with, could you pleaseintroduceabitaboutDMICand thescopeofthisproject?

Delhi Mumbai Industrial Corridor (DMIC) is being created on the backbone of a dedicated freight corridor, which will link up political capital of India, Delhi, to the economic capital, Mumbai. This will enable goods produced in the northern part of India to reach the ports on the western cost in 12-13 hours. Today, it takes 13-14 days. So it will be a big revolution when it is operational in 2017. These goods will be transported in completely new container trains, carrying goods in double stacking, triple stacking. This has opened huge opportunities for urbanisation, manufacturing, and value-added production on the either side of this

Special France-India 2013 Biz@india12

corridor of almost 1500 km. Moreover, the government of India is of the view that in the next three decades, you will have more than 500 million Indians living in the urban areas. India is a very young country with median age of population about 25 and the country will be passing through a demographic transition. And the biggest challenge is to provide jobs for young Indians and therefore, manufacturing sector must grow 15-16 per cent per annum over the next three decades, Therefore, Government of India’s intention is to create large manufacturing hubs. It is making 24 new cities in the DMIC and in the first phase, seven new cities are being created - one in each state of the country. So, this is the process of manufacturing and urbanisation. This has opened up vast opportunities.

This is one of the largest projects in the world. This is India’s most ambitious infrastructure project.

India has been very reluctant urbanizer but what this project does is that it enables India to utilize this challenge, use this opportunity to make a quantum jump by using technology – technology to drive growth, urbanise, manufacture and transport. I think this is a big opportunity for India to use what is known as smart city concept, smart and intelligent cities and what we usually call ubiquitous cities so that digital technology can be used effectively across different sectors in these cities. So, we have finished the master planning of these seven cities. We have got these plans notified. We have got ICT master plans made on the top of the

Amitabh Kant, CEO,DelhiMumbaiIndustrialCorridorDevelopmentCorporation

The Delhi-Mumbai Industrial Corridor is one of the largest infrastructure development projects in the world and the development of areas around the DMIC is an even more ambitious project as it will create 24 ultra-modern and high-tech cities for the first time in India or anywhere else in the government. This is of course a very promising opportunity for any company involved in urbanisation. In an interview with Ranvir Nayar, Amitabh Kant, who heads DMICDC says the French companies can be key partners in this project.

DMIC:

French business

Unprecedented opportunity for

Page 13: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Interview

Biz@india Special France-India 2013 13

Under the DMIC project, the goods will be transported in new container trains in double & triple stacking.

n

geographical master plans. And, we are appointing programme managers. We have detailed engineering for this work so that it has opened up vast opportunities for the companies – both EPC, and PPP contracts. It has opened up vast opportunities in the transport sector, logistics sector and manufacturing. It is a vast opportunity with French companies who can tap it. France has a lot of expertise in transport, logistics companies and the companies which are advanced in digital technology but it also require very good planning. So, we are looking for companies those who have done very good geographical planning, who have used digital technology in the process of urbanisation. For us, it’s an opportunity to learn from France the process of urbanisation because France is one country that has used its cities very effectively for growth. If the 19th century was the century of empires, 20th century was of the countries and 21st century will essentially be the century of cities. Cities will compete with each other. There is lot to learn from French cities. Paris, for instance, is a unique example of vibrant life city and I think there is plenty for us to work in partnership with France.

• Whatisthesizeoftheinvestmentforthisprojectproposed?

The size of the project is $90 billion. This is the cost which is in phases, but there are significant opportunities in transport, logistics, manufacturing and housing. I do not expect construction companies from France to come; I expect transport, renewable, power and technology companies to come and look at the vast domestic market of India because this will be going to expand the Indian market. The strength of the Indian market lies in the vast domestic demand and the fact is that India is very short of good quality infrastructure. Whatever infrastructure

we make it is for yesterday to tap the huge demand.

• Whatkindofforeignparticipationhasbeensofar?

We have already a lot of international companies working for us. Among the international planners, we have AECOM, CH2M Hill, Jurong from Singapore and Lea Associates. In IT, IBM and Cisco are working for us. These are large areas and we believe in getting best expertise and thus we expect best companies.

• Howareyoureachingouttothesecompanies?

Our initial stage was of planning, programme management and detailed engineering. After this, we empanelled these consultants and agencies. We select them on the basis of both cost and quality. But as we get into execution, we would like French companies to also be selected.

• Which are the particular sevencitiesaboutwhichyoutalkedabout?Which are at the advanced stagecurrently?

The most advanced is Dholera in Gujarat which will cover over 930 sq km, other cities include Dighi and Shendra in Maharashtra; Pithampura- Dhar-Mhow in Madhya Pradesh; Khushkera-Bhiwadi-Neemrana in Rajasthan; Manesar in Haryana; and, Dadri and Noida in UP.

• Has the construction started inthesecities?

Construction has started in Gujarat and Maharashtra. But our view is to do proper planning and detailed engineering. India must learn the art of proper planning and detailed engineering and then go for execution; rather than getting into execution too early without adequate work.

• Youmentionedaboutlogisticsandtransportsector.Sohaveyoubeenintalkswiththecompanies?

Several French companies have interacted with us. There is a huge challenge of water; for which we have discussed with companies like Veolia. There is huge opportunity for such companies to participate in finding solution to the issues like power, water, etc. Veolia, Suez etc are quite fine companies. These are the examples of world leadership and we must get these companies vigorously to participate in the project.

For us, it’s an opportunity to learn from

France the process of urbanisation because France is one country that has used its cities effectively for growth.

There is lot to learn from French cities.

Page 14: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

opportunity

INTERVIEW

• AstheFrenchPresidentvisitsIndiaforthefirsttimeafterhisvictorylastMay,whatarethemainissueswhichshouldbeonthetableasfarasITisconcerned?

First, I think, there is much more to do in Indo-French trade. It is increasing and enormous scope is availablehere. The Indian market is changing rapidly and there is scope for French companies to offer their products and services in India across IT and a host of other sectors.I don’t think we should be happy with the percentages in the growth we have seen. I do hope that both India and France would work hard to ensure that the EU-India free trade agreement is signed because that will open up business opportunities for both the countries. We look forward to that happening.

As far as the Indian IT industry is concerned, we do understand that there are still uncertainties in Europe. The business has been sluggish and people are conservative in terms of

Special France-India 2013 BIZ@INDIA14

their expenditures. However, inspite of all these, we have seen that the business for us grows in Europe and I think, it is a good sign because it just shows that people are willing to make changes. They have been very conservative in the past. They have not been leveraging outsourcing as much as their counterparts in US have done, which would mean that they are not competitive. So, competitive pressures in Europe, including France,should lead to changes happening, though I would say that France has been probablylittle bit slower that it should have been.When we look at the IT sector, we should classify both the customers and the service providers into two categories – first are the large customers and second are the medium and small customers. The large customers are typically serviced by large IT companies, because they are global in nature and they have presence all across the world and they tend to be using larger French companies. Then,

there are small customers who are serviced by small companies.

The question is that with the French market itself having been little sluggish for the French companies, so for them competitiveness is not about within France, but it is global. They need IT and process management to be transformed so they remain competitive. So, we do hope that the French companies would take that step whether they come through the Indian companies or they go through their current service providers. Large part of the Indian IT growth has come from servicing their customers in rest of the Europe and USA. The French still constitute a small part of this. So, I think, it is time for us to do it. If I look at what is happening across the world in spite of the downturn today, the CIOs and companies are investing insocial media, integrating mobile, using analytics for decision making and embracing cloud. This would mean that they need latest technology; they need

Let’s not miss this opportunity

Som Mittal, President,NASSCOM

As President of the Indian IT Industry association, Nasscom, Som Mittal, is perfectly aware of the current situation of Indo-French collaboration in the key industry of Information Technology. Having led several missions to the third largest EU economy, Mittal realises the task and the challenges that lie ahead for both the countries in deepening this relationship. In an interview withRanvir Nayar, Mittal says there is vast scope for improvement here.

Page 15: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Interview

BIZ@INDIA Special France-India 2013 15

people to come in and change things. So, to me, it is about French companies realising that it is their competitiveness at stake; it is not about outsourcing or offshoring or anything of this kind. This is about who can do job for them.

We also know that the medium and small service providers in France have a unique problem because they don’t have the resources; the latest technology is not available. SMEs are threatened because they are also under pressure to be very cost-

effective. So what needs to be done is that these small and medium service providers need to tie up with Indian companies in whatever form – whether it is joint venture, acquisitions; but they need back and front ends. And Indian small and medium service providers don’t have front end in France and can never think of putting one. Similarly, the French SMEs will find it very difficult to create a back-end of their own. So, this gives opportunity of a very unique partnership which is possible. Later in early April, we are having a session in Delhi where we expect these companies to come in; we will get our service providers also to come in. It is not exactly a customer meet, but much more a meet of IT service providers to say what new models have to come in. From the Indian perspective clearly the penetration rates in France are low and we think, the market is very sophisticated. We can meet their needs and the only way it has to be done is that if change happens now. As I mentioned, we have seen that the changes are already happening

in Europe and I see, no doubt, why French would not change either. It is mind set change which is required. I don’t think that it is an issue about unions and jobs because today there is a shortage across the world of the kind of skills that you need to adopt modern technologies. So, it is not about zero-sum game; it is about reskilling the people who can do the jobs and also leverage talent that is available. As you have seen that in spite of the poor economic situation across the world, Indian IT industry is still growing 11-12 per cent; larger companies have still done better. So it should not be the situation of missed opportunities for both the countries. • Do you think the creation of theIndo-FrenchJointWorkingGrouponITwouldhelp?

All these groups help because they bring the issues out. We think currently from the Indian side, we have two big issues that we face – one relates to mobility. I think just like French products will move to India, moving

We can meet their needs and the only way it has

to be done is that if change happens now.

As I mentioned, we have seen that the changes

are already happening in Europe and I see, no doubt,

why French would not change either. It is mind set change which is required.

Page 16: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Interview

Special France-India 2013 BIZ@INDIA16

of human resources across the globe is also required. This is one issue. The other one is we should not do anything which increases the cost of delivery and today social security taxes that we have to pay in France without really getting benefitted. The working group of IT, etc., helps in bringing up those as well. There are other areas of collaboration globally when we talk about standards, cyber security; those are also the areas that the Indo-French IT group would bring up.

• Howdoyousee2013forITindustryacross the globe and especially inEurope?

Well, we are still to work out the numbers. We have been very encouraged with the results we have seen in the previous quarter which otherwise was low in the traditional IT industry which shows that demand side is being positive. This shows that business continues to be tough but we would finalise our estimates in early February or mid-February that would be more specific. With the required changes, needs and economic stability, Europe will continue to provide growth for us.

• DoyouthinkIndiancompanieswillperhapsbeabitmoreaggressiveinthe European market, especiallyin

France, by going through theacquisition route? We have seensomebigacquisitionsoflate.

Our acquisitions have happened fortwo reasons – we don’t need to acquire for customers because we do get customers when we do an acquisition.

But now the nature of work is where we need domain expertise and contextual information. So, you can’t acquire them so easily on your own. You can’t build domain expertise or contextual information as they are too long. So, for these two reasons, Indian companies are looking for acquisitions and these acquisitions are too small rather than large because we need to absorb and retrain those people. And, it is win-win situation for those who get

acquired because their possibility of survival and growth becomes more. And in any of these acquisitions, we should never have fear of losing people because those are the reasons for which we are doing acquisitions.Doyouthinktheseacquisitionsbringadequate value addition to the jobswearedoinghereinIndiacurrently?The question here is about support and maintenance but today business leaders are getting involved.

It is business which decides what IT should do. It is not necessarily CEOs who decide this. So, if you want to be in the business, you need domain expertise. For this, we go for these acquisitions. These are required to get engaged with the business people, understanding how to do business in France and how you do banking business in France –it is the domain expertise plus contextual information which you need.

• AnythingwhichFrenchwouldseekfromIndianIT?

We have such a big market. French companies who have solutions suitable for us, can tie up with Indian companies and offer those solutions here. They have to come out more aggressively like the collaborations the country is doing and I am sure French will also do it. They are smart people. n

We have two big issues that we face – one relates to mobility. I think just like French products will move to India, moving of human

resources across the globe is also required. The other

one is we should not do anything which increases

the cost of delivery

Page 17: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP
Page 18: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Better with the years

BUSINESS

French Presidential visits to WIndia have traditionally been the milestones in the development of Indo-French

relations. Right from the visit of President Francois Mitterand to India in 1982 to those by President Jacques Chirac in 1997 and 2006, and President Sarkozy’s visits in 2008 and 2010, Indo-French ties have received a major boost as a series of key agreements have been signed during the state visits between the two nations.

Thus, the forthcoming visit of President Francois Hollande to India is

Special France-India 2013 BIZ@INDIA18

also likely to take the bilateral relationship to the next level. Hollande will be accompanied by several of his key ministers - external affairs, commerce, defence, transport, science & technology etc, and also a very strong business delegation of over 60 leading French companies. Thus one can definitely anticipate that the business ties between the two nations will finally begin to reach a size that is of a similar level as the excellent strategic, political and cultural relations. Overall, the Indo-French ties could not have been any better in

certain spheres, while in others they are clearly strengthening. A few headaches do remain and the two countries do not necessarily see eye to eye on every issue, yet the relationship has been strong enough to keep the irritants in the right perspective. We present you a snapshot of the key spheres of this relationship.

Strategic Ties This is one area where the

relationship can be said to the strongest and indeed the strategic ties have acted as motor for the

The Indo-French relationship can best be described as a good quality wine. With all the right ingredients, this relationship has become stronger and better with the years, just like any maturing wine. Ranvir Nayar presents a snapshot.

Page 19: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Business

Special France-India 2013 BIZ@INDIA 19

development of relationship in other spheres as well. In the late 1990s, after the break-up of the Soviet Union, the French evoked the issue of a multi-polar world and clearly classified India as being one of the poles of the new world order. India’, too, reciprocated the vision and the two countries began to hold regular intensive dialogues on strategic geo-political issues. The two soon realised that their visions on most of the issues did coincide, helping cement a relationship that has changed its contours over the last four centuries.

The strategic ties have also stood the test of time and indeed there have been a few testing times for both the countries to realise the importance of this relationship and stand by each other. India is unlikely to forget any time soon that France was the sole Western power that did not pull down shutters on the relationship in 1998 when India conducted its second nuclear test, while practically every other Western nation, big or small, harshly criticised India and imposed sanctions. The French asserted that India had the right to conduct the test and hence other countries that hastily imposed sanctions were being hypocritical. France has also been one of the earliest and strongest votaries of India’s candidature for the permanent seat in

the United Nations Security Council. India has also generally been supportive of the French position on various fronts, notably the current intervention in Mali.

It is not that the two countries do not have any difference of opinions on any issues. Middle East and South Asia are two regions where the strategic relationship could come under strain as both the countries have very different opinions on the situation. Take Syria and Iran, for example. In Syria, while France has been in the lead of nations seeking and indeed attempting to bring about a change proactively, India is part of the group of nations that sees this as an internal issue to be handled through a dialogue and peacefully by the various players involved.

Prime Minister Manmohan Singh addressing the UN General Assembly

An even more complex topic is Iran. While for India it has been business as usual, France, along the other EU nations and the US, has taken a very strong position on Iran’s nuclear ambitions and is pushing towards imposition of sanctions if the Iranian regime does not give up its nuclear programme. India relies on Iran for a chunk of its energy requirements and seeing the historical relationship between the two nations as well as the fact that India and Iran have similar opinions about the situation in Pakistan, India will not be keen to forsake Iran. Once again, the year 2013 could put France and India in a difficult situation vis a vis each other.

But, officials on both sides remain confident about the relationship being stronger than any differences of perceptions. “We know that India has a different perception of how it should be handled, but our relationship is so strong that both the sides know that they can have a different opinion on some matters and each will respect the other’s perception,” sources in the French Presidential Palace, the Elysee told Media India Group.

DefenceIf any other aspect of the Indo-French relationship can match the strategic in terms of depth, width and scope, it is

India is unlikely to forget any time soon

that France was the sole Western power that did not pull down shutters

on the relationship in 1998 when India

conducted its second nuclear test

Page 20: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Business

Special France-India 2013 BIZ@INDIA20

only the defence sector. India has been buying varied defence products from France for over five decades. The first multi-billion dollar purchase was in the 1980s when India decided to buy the French combat aircraft Mirage. In the 1990s, India signed another big-ticket deal for the manufacture of six Scorpene submarines. In 2012, India signed a $2.4 bn deal for the modernisation and upgradation of the Mirage aircraft and then the biggest single defence deal in human history

when India decided to buy 126 Rafale multi role combat aircraft from Dassault, providing a much-needed lifeline to the Rafale programme which had so far failed to find a single buyer except the French Air Force. The Euro 20 bn deal is expected to keep the Rafale and accessory production lines on for the next 40 years. It will also mark the beginning of the first major initiative by the Indian private sector to get into defence. This is largely thanks to the condition of the Indian

government that 50 percent of the value of the Rafale deal must be off-set through local manufacturing in India. Dassault is already talking to several leading Indian conglomerates namely Reliance as well as

BusinessThis is the black sheep of the family. In terms of bilateral trade, France ranks fifth within the EU nations, behind much smaller economies like Belgium, Holland and Italy. The overall figures have hardly moved in the past four years. Even from 2001, the performance is anything but noteworthy. The trade was roughly Euro 2.7 bn in 2002 and in 2012, it is expected to be just Euro 7 bn. Compare this with say China, Germany, UK or Italy and France pales in comparison. Even though in 2008, the two governments set a target of doubling the trade within five years, the target is certain to be missed by a mile. The fault lies with the businesses on both the sides.

The French companies have been slow to look at India, afraid of the distance, differences in culture, business practices as well the fact that they did not really receive any major push from the government, as they have been used to in their former

0

5000

10000

15000

20000

25000

2000200220042006200820102012

India’s trade with key EU nations ($mn)

Take off : Defence has been a cornerstone of this relationship

Source : Ministry of commerce and industry India

Page 21: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Special France-India 2013 BIZ@INDIA 21

colonies or in undemocratic countries like China where things happen through government diktats. Moreover, the few French companies that did move to India made enormous strategic errors – wrong partners, wrong products, wrong pricing etc – that they had to eat a humble pie and wind up from India. India, too, has hurt its own cause with global media reports being full of how complex it is do business in India and the extremely slow pace of Indian bureaucracy, the stalled reforms etc. These reports may have pushed many a prospective French CEOs from coming to India.

The scenario is equally gloomy on the other side of the fence. Indian companies have been investing, acquiring and setting up offices in all major EU nations. Except France! The Indians have been put off by the same set of problems in France that their French counterparts face in India.

Differences in culture, language, business practices, coupled with global media reports being full of how complex it is do business in France, the social unrest, and the extremely slow pace of Indian bureaucracy, the stalled fiscal and social reforms etc. The Eurozone crisis did not help the matters

at all and seems to have calmed the passions of even the most Francophile Indian CEO.

But there are some signs of change. The French companies are now eagerly looking at India as a market, as their traditional markets continue to stagger. The number of French companies in India has more than doubled in the last five years and so have the investments. The upcoming opportunities in sectors like food processing, urbanisation, civil aviation, clean technologies etc are just the sectors where the French enjoy an edge over their global rivals and it seems that the two nations may finally begin to do business with each other in a meaningful way.

Culture This is one of the strongest bonds in

the Indo-French ties and the two countries take care to continuously nourish this vital link by mounting large-scale nationwide festivals. After the remarkable success of the first editions of Bonjour India and Namaste France, the two countries are now preparing to launch the next edition of these festivals that celebrate art and culture.

Participation by Indian artists has become a regular feature in every

major cultural event in France. There are on average 4-5 major events per month with either India as a central theme, or Indian events as part of major event or events organised by Indian and French associations. There have been about 31 photo exhibitions, including those on the occasion of commemoration of Gandhiji’s death anniversary and 21 art exhibitions. Around 23 music concerts (Hindustani and Carnatic); 24 dance performances, 14 cultural festivals and 13 Film Festivals with Indian participation have taken place.

The first Festival of India in France was inaugurated in 1985 by Prime Minister Rajiv Gandhi in Paris and left a lasting impression in the minds of the French people. Then came the French festival, Bonjour India, in 2009-10 and the Indian festival, Namaste France, which brought the Indian and the French public closer to each other.

Cinema:Cinema is one of the strongest

lynchpins of the relationship between the two nations. The two sides are finding increasingly bigger audience for films in each-others’ nations and today, the Indian films have become a source of cultural bonds for both the nations.

Business

Bonjour India ! Culture ties are reinforced by major festivals

Page 22: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Business

Special France-India 2013 BIZ@INDIA22

In 2010, the two countries signed a co-production treaty to encourage co-production of films and facilitate meetings and exchanges of producers in both countries. Since 2005, more than 20 Indian directors-producers from various regions of India shot their movies in France. Film festivals act as an exhilarating platform to celebrate the growing Indo-French ties. The 65th Cannes Film Festival in 2012 witnessed a record Indian presence, highlighting three independent Indian films in its main selections. And the upcoming 66th edition of the Cannes Film Festival will commemorate 100th anniversary of Indian cinema by marking India as the Guest of Honour. The flow is not one sided and many French films are also finding audience in India. This was earlier limited to café-guzzling, cigar smoking elites in film clubs or ‘arty’ film festivals. But the market has broadened and now French films are being released in mainstream theatres in major cities such as Mumbai, Delhi, Bangalore and Pune marks some progress in recent efforts by French companies to enter the market.

TourismTourism is an initial link that has

been bridging India and France closer. Europe is a popular destination on the wish list of almost every Indian traveller wanting a holiday abroad. This is validated by the fact that Europe

welcomes close to two million Indian travellers (business and leisure). Out of this number, France received an estimate of 315,000 Indian visitors. Even, French have also started travelling to and exploring India in large numbers in recent years. To attract more Indian travellers to France, Atout France launched the ‘France Celebrates India’ campaign in March

2012 which consisted of special offers and schemes which have been offered by Atout France’s partners for the Indian market. For India, too, France remains a major source market. In fact, France is the biggest European source market for Indian tourism, ahead of Germany, Spain, Italy etc and behind just the United Kingdom. The economic crisis has not impacted the tourist flow from France which has grown marginally in 2012.

There are other sunrise sectors of cooperation, especially in education, research and development and social cooperation. As the relationship matures in these domains, India and France can be sure to enjoy the fruits of this bountiful relationship for a long while to come. n

66th edition of the Cannes Film Festival

will commemorate 100th anniversary of Indian

cinema by marking India as the Guest of Honour

Cannes Film Festival : A must visit event for Indian film industry

Atout France has succeeded in increasing Indian tourists to France manifold

Page 23: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP
Page 24: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Special France-India 2013 BIZ@INDIA24

AdvAntAge IndIA!

INDIA AS A SOURCING HUBFood processing

India is one of the largest food producers in the world. India has diverse agro-climatic conditions and has a large and diverse raw material base suitable for food processing companies. India has huge scientific and research talent pool. It’s strategic geographic location (proximity of India to markets in Europe and Far East, South East and West Asia). With a huge agriculture sector, abundant livestock, and cost competitiveness; India is fast emerging as a sourcing hub of processed food. India’s food processing sector covers fruit and vegetables; spices; meat and poultry; milk and milk products, beverages, fisheries, plantation, grain processing and other consumer product groups such as confectionery, chocolates and cocoa products, soya-based products, mineral water, high protein foods etc.

India´s Position in World´s Production• Largest producer of milk in the world (105 million tonnes per annum)

• Largest livestock population(485 million tonnes per annum) • Second largest producer of fruits & vegetables (150 million tonnes per annum) • Third largest producer of food grain (230 million tonnes per annum) • Third largest producer of fish (7 million tonnes per annum) • 52% cultivable land compared to 11% world average • All 15 major climates in the world exist in India • 46 out of 60 soil types exist in India • 20 agri-climatic regions

PharmaceuticalsThe Indian pharmaceutical industry,

now over to US $ 20 billion industry, has shown tremendous progress in terms of infrastructure development, technology base creation and a wide range of products. It has established its presence and determination to flourish in the changing environment. The industry now produces bulk drugs belonging to all major therapeutic groups requiring complicated manufacturing technologies.

Formulations in various dosage forms are being produced in GMP compliant facilities. Strong scientific and technical manpower and pioneering work done in process development have made this possible. The country now ranks third worldwide by volume of production and 14th by value thereby accounting for around 10 per cent of world’s production by volume and 1.5 per cent by value. Globally, it ranks fourth in terms of generic production and 17th in terms of export value of bulk actives and dosage forms. Indian exports are destined to more than 200 countries around the globe including highly regulated markets of USA, West Europe, Japan and Australia.

India tops the world in exporting generic medicines worth US$ 11 billion. Currently, the Indian pharmaceutical industry is one of the world’s largest and most developed. Generics will continue to dominate the market while patent-protected products are likely to constitute 10 per cent of the pie till 2015. Multinational drug companies are showing a healthy growth in the Indian market setting a new trend. Out

With robust growth, state-of-the-art technical base coupled with a huge reservoir of workforce, India excels in some sectors which make it an ideal sourcing hub for many nations. However, there are few sectors where investments poured in from the foreign shores can write growth stories for the Indian industry. A look at both the segments where India can act as sourcing hub and producer for developed countries, including France.

Page 25: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

BIZ@INDIA Special France-India 2013 25

of 25 top medicine brands by sales last year, 13 were global drug major such as Pfizer, GSK and Novartis.

TextilesThe Indian textile industry is one of

the major sectors of Indian economy largely contributing towards the growth of the country’s industrial sector. The textile sector contributes 14 per cent to industrial production, 4 per cent to National GDP, and 10.63 per cent to country’s export earnings. Growing at a rapid pace, the Indian Market is being flocked by foreign investors exploring investment purposes and with an increasing trend in the demand for textile products in the country, a number of new companies and joint ventures are being set up in the country to capture new opportunities in the market.

The most significant change in the Indian textile industry has been the advent of man-made fibres (MMF). The country has successfully placed its innovative range of MMF textiles in almost all the countries across the globe.

Polyester is the largest segment of the Indian MMF and rayon textile industry. Exports of Indian MMF textiles scaled an all-time high of US$ 5,699 million in 2011-12, as compared to US$ 5,013 million in 2010-11, registering a year-on-year growth of 14 per cent. In 2011-12, fabrics were the largest product category accounting for 41 per cent of total exports. During 2011-12, the Middle East was the largest market and accounted for nearly 25 per cent of textile exports from India, while Asia accounted for 23 per cent.

In June 2012, the production of MMF has registered a growth of 18 per cent, cotton yarn by 14 per cent and total cloth production saw an increase of five per cent.

The provisional export of handmade carpets, floor coverings and other Handicrafts product during July 2012 were US$ 252.31 million, registering an increase of 14.41 per cent as compared to US$ 180.67 million during the corresponding month in 2011.

The potential size of the Indian textile and apparel industry is expected to reach US$ 221 billion by 2021, according to Technopak’s Textile and Apparel Compendium 2012.

LeatherThe Leather Industry holds a

prominent place in the Indian economy. This sector is known for its consistency in high export earnings and it is among the top ten foreign exchange earners for the country.With an annual turnover of over US$ 7.5 billion, the export of leather and leather products increased manifold over the past decades and touched US$ 4.86 billion in 2011-12, recording a cumulative annual growth rate of about 8.22% (5 years).The Leather industry is bestowed with an affluence of raw materials as India is endowed with 21% of world cattle & buffalo and 11% of world goat & sheep population. Added to this are the strengths of skilled manpower, innovative technology, increasing industry compliance to international environmental standards, and the dedicated support of the allied industries.

INDIA AS A PRODUCEREnergy

India is both a major energy producer and a consumer. India currently ranks as the world’s seventh largest energy producer, accounting for about 2.49% of the world’s total annual energy production. It is also the world’s fifth largest energy consumer, accounting for about 3.45% of the world’s total annual energy consumption in 2004.

Renewable EnergyRenewable energy in India is a sector

that is still underdeveloped. India was the first country in the world to set up a ministry of non-conventional energy resources, in early 1980s. However its success has been very spotty. In recent years India has been lagging behind other nations in the use of renewable energy (RE). India’s cumulative Grid interactive or Grid Tied Renewable Energy Capacity (excluding Large Hydro) has reached 26,368.36 MW, of Which 69.5% comes from Wind, while Solar PV contributed nearly 4% of the Renewable Energy Installed Capacity in India of total generation capacity of India.

A capacity of about 20,556 MW grid interactive power generation from various renewable energy sources has been installed up to 30.06.2011 against a target of 12,300 MW for 11th Five Year

Plan. Total power generation capacity of various forms of renewable energy, up to 30.06.2011, is given below:

Wind Power: 14,550 MW Small Hydro Power: 3105 MW Biomass Power: 1045 MW Bagasse Cogeneration: 1742 MW Solar Power: 36 MW Urban and Industrial Waste toEnergy: 73 MW The Government has taken several

steps mainly by way of suitable policy/ regulatory measures for achieving the plan targets and augmenting power generation through renewable energy sources throughout the country.

AutomobileThe Indian automotive industry has

emerged as a ‘sunrise sector’ in the Indian economy. India is being deemed as one of the world’s fastest growing passenger car markets and second largest two wheeler manufacturer. It is also home for the largest motor cycle manufacturer and the fifth largest commercial vehicle manufacturer. However, despite growing competition, Indian auto industry has been able to increase their exports due to strong global quality practices and manufacturing expertise.

The amount of cumulative foreign direct investment (FDI) inflow into the automobile industry during April 2000 to November 2012 was worth US$ 7,518 million, amounting to 4 per cent of the total FDI inflows (in terms of US$).

India’s scooter and motorcycle manufacturers have registered 4 per cent growth during April-November 2012, according to the recent data released by the Society of Indian Automobile Manufacturers (SIAM). Moreover, the passenger vehicles segment grew at 9.71 per cent during April-June 2012, while overall commercial vehicle segment registered an expansion of 6.06 per cent year-on-year (y-o-y).

The Indian small and light commercial vehicle segment is expected to more than double by 2015-16 and to grow at 18.5 per cent compound annual growth rate (CAGR) for the next five years, according to a report titled, ‘Strategic Assessment of Small and Light Commercial Vehicles Market in India’ by Frost & Sullivan.n

Business

Page 26: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Enero-Febrero 2013 Destino La India26

Cultura

Though India chose Rafale, the multirole comabt aircraft made by French manufacturer Dassault, almost a year ago, the signing of the final contract has been delayed, partially due to the enormity of the deal – it is the biggest single military aircraft purchase in the world’s history. But the delay has also come due to the high expectations on both sides. France and more specifically Dassault is looking at India as being the saviour of the Rafale programme and India is keen to ensure that it gets everything that the Rafale can come with and at the best price.

A boonRafale

for Indo-French diplomacyA boon

Ravinder Bhatia

Page 27: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Destino La India Enero-Febrero 2013 27

Defence

Ironically, over the last few years, while the Indian Air Force (IAF) was beginning to go through metamorphic amends in its thinking,

tenets and operational doctrines, it also started to experience appalling reductions in force levels and other combat equipment. Apart from upgrading its active fighter fleets that have adequate residual life such as Mirage 2000, MiG-29 and Jaguars, the IAF is progressively inducting additional Su-30 MKI aircraft to arrest any further downslide in its Combat squadrons’ strength. It is also eagerly waiting for the conclusion of the 126-aircraft Medium Multi-Role Combat Aircraft (MMRCA) contract which had zeroed in on the French Dassault Rafale as the fighter of choice.

In a grueling five-year selection process, the IAF tested six fourth generation plus fighters—the American F-16IN and F-18E/F, the French Rafale, the Swedish Gripen NG, the European Eurofighter Typhoon, and the Russian MiG-35. After conducting comprehensive testing against more than 600 parameters, Rafale was finalised for its technical reliability and meeting the IAF’s current and future operational requirements. The Rafale combat jet also worked out much economical in terms of life cycle costs and direct acquisition costs.

The Rafale deal is especially important as it is IAF’s best bet to halt and even reverse the recent and continuous fall in the combat aircraft squadrons; these have reportedly fallen from a high of 39.5 Squadrons to about 32 Squadrons at present.

Under this deal, the first 18 Rafales would be built in France, but the next 108 would be assembled in India by Hindustan Aeronautics Ltd (HAL) from SKD (semi-knocked-down) and CKD (completely knocked-down) kits. The first aircraft is expected to be delivered three years after signature of the contract. The time lag reflected India’s request for two-seater jets rather than the one-seater model that Dassault currently produces.

India has insisted that the deal involves significant technology transfer and that Indian suppliers secure work equivalent to around half of the value of the contract. The wrapping up of the deal has been repeatedly delayed, with India having initially set a target of the end of last year, which slipped to March 31, 2013, the end of the current fiscal year.

Why is this deal important for France?

This will be India’s costliest defence contract totalling close to $20 billion and is currently the single largest international military aircraft deal in the world, big enough to inject billions of Euros into France.

A majority of European economies continue to be in trouble, with Spain following Greece into financial grief and Italy too remains on the brink of collapse. The healthier economies of the Eurozone, France and Germany, are pushed to support the weaker economies recover their health. While these two economies are better, they are by no means anywhere near the robustness of their heyday. In this context, the $10 billion MMRCA contract is indeed a juicy prize as the final contract value with all options exercised could go up to $20 billion. The deal has the potential to reshape the European defence industry at a time companies are suffering from

Page 28: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

cutbacks in their traditional developed markets.

Sealing this deal will be vital to ensure the survival of the Rafale, which is built and funded entirely by France, and might have been vulnerable to post-Presidential election budget cuts. Also for Dassault, the Rafale program will now remain active, with a stabilized production line for decades to come, and the company will have that much more time to find additional customers. Keeping its production line and supply chain buzzing at an economically-viable rate are sufficiently valuable achievements to push immediate profits into the sidelines. Supporting 126 and possibly 206, if India buys an optional second batch of combat aircraft, and providing spares, fixes and upgrades over the next 40 years, will generate gigantic profits, and this, more than justifies lowering Dassault’s notoriously high profit margins especially for this deal.

For France and Dassault, this is a huge boost because they have not been able to secure a single customer for the fighter plane apart from the French Air Force. Dassault and the French government are hoping that India’s decision will have a positive influence on other potential buyers of the Rafale, which include Brazil, which is in the market for 36 planes, Canada, Malaysia and the United Arab Emirates.

Why India favoured France (Dassault)?

While many observers cite technology transfer, prices and performance as being major factors in India’s selection of the 4.5G Rafale

as its next-generation fighter, reality is very different even if these factors obviously did play a significant role.

The Indian Air Force was particularly impressed by its operational performance during the Libyan bombing campaign and in Afghanistan. It has also been used in Mali recently to bomb rebel positions. Rafale also has a naval variant which could be of future interest to India, given its plans to buy and build aircraft carriers.

The Indian Air Force also is a long standing satisfied user of French fighters. It was also particularly appreciative of the performance of its Mirages during the 1999 Kargil campaign against Pakistan, and of the support it then obtained from France. The recent decision to upgrade India’s Mirage 2000H fighters will also abridge the air force’s logistics chain, as these will share with Rafale many weapons and other equipment.

If we take political considerations into account, France’s steadfastness as a military ally contrasted strongly with that of the United States, which slowed or banned delivery of components for Light Combat Aircraft that India was developing. And, of course, the 1998 arms embargo, decreed by the US after India’s nuclear test in May of that year, left a very bad taste in Indian mouths. France, on the contrary, was the only Western nation not to impose any sanctions on that occasion.

Political considerations were also a significant factor playing against Rafale’s final competitor, the Eurofighter Typhoon. As this aircraft is produced by a consortium of four nations, each with different foreign

policies and different attitudes and tolerances to arms exports, Indian officials were a bit nervous about their ultimate reliability as a single supplier.

Germany is a long-standing Indian aviation partner. German companies, essentially the former Messerschmitt-Boelkow-Blohm, now part of EADS - helped Hindustan Aeronautics Ltd. develop both the LCA and the Advanced Light Helicopter, now called Dhruv. These links were the reason the Eurofighter bid was led by Germany’s Cassidian, and not BAE Systems, the British partner. But Germany had dithered over technology transfer for LCA, soft-pedalled on ALH tech transfer when German pacifists raised their eyebrows when India almost decided to go to war with Pakistan over Kargil and Kashmir, so in the final analysis it could not be considered a reliable supplier of major weapons.

Italy has never sold a major weapon to India, and so could bring neither influence nor reputation to support Eurofighter, while the third partner, Spain, is totally absent from the Indian military landscape.

This left BAE Systems as the best-known Eurofighter collaborator in India, and so by default as its ultimate public face. BAE in 2003 sold £1.5 billion’s worth of Hawk jet trainers to India, with a follow-on, £500 million order in 2010. However, its previous major sale to India was the Jaguar light attack aircraft in the 1970s. In fact, this aircraft was jointly developed by Britain and France on a 50/50 basis, and while it was license-produced by HAL it was never really successful as a fighter. Furthermore, France could claim as much benefit from its Indian career as BAE.

Taken together, the Eurofighter partner nations posed an even more complex problem: in case of war, German law prohibits deliveries of weapons and spares, Italian law and public opinions would demand an embargo, while Spanish legislation is misty. Indian politicians must have

Special France-India 2013 BIz@InDIa28

Defence

Page 29: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

wondered - What would happen, if after buying the Eurofighter they went to war? Would spares and weapons be forthcoming, or would they be blocked? The political risk was obviously too big to take.

Weapons also played a significant role in swaying Indian opinions to opt for Rafale: not only is its weapons range mostly French - made, and thus not subject to a third-party embargo, but so are all of its sensors. Eurofighter, whose air-to-air missiles include the US - made AIM-120 Amraam and the German-led IRIS-T, and whose primary air-to-ground weapon is the US-made Paveway, was obviously at a competitive disadvantage in this respect.

Furthermore, the Rafale is nuclear-capable and will replace the Mirage 2000N in French service as the carrier of the newly-upgraded ASMP/A nuclear stand-off missile; it is also capable of firing the AM-39 Exocet missile, giving it an anti-ship capability that its competitors do not have. India is also interested in fitting its BrahMos supersonic missile to a wide range of its combat aircraft, and Rafale could apparently carry it.

Given that India had sworn to buy the cheapest compliant competitor, it would have been unable to justify picking the Rafale had this not been offered at the lower price. While official figures have not been released, initial reports claim that Rafale was offered at a unit price of $4-$5 million less than Eurofighter, which is a surprisingly large advantage given the French aircraft’s reputation of being high-priced.The French offer also featured substantially lower costs of ownership, thanks to lower fuel consumption and simpler maintenance requirements.

Offset ClauseAfter finalising the deal, as per

the offset clause of Indian Defence procurement policy, Dassault will have to reinvest 50 per cent of the contract’s worth back into the Indian defence

sector. With the deal’s value likely to reach $16 billion, India’s defense sector is expected to receive about 400 billion rupees ($8 billion) as offsets. The French company had told the ministry that if it is given the overall responsibility for the project, it should be given the freedom to decide on the proportion of work to be done by HAL and private companies in the programme. If the government had given a major role to the French firm in producing the aircraft in the country, it would have assigned a major share of work to an Indian defence company. Soon after Dassault was declared as the lowest bidder for the MMRCA deal, it signed a MoU with a company of the Reliance Industries group for collaborating in the security sector. The Indian defence ministry has decided to remain firm on having Hindustan Aeronautics Ltd (HAL) as the lead integrator for producing 108 aircraft in the country, virtually turning down Dassault’s plea to play a bigger role inthe multi-billion dollar offset project.

Analysts warn that to derive the maximum benefit from the offsets, Indian industry must be in a position to absorb major technology infusions. And benefits could be narrowed if the Indian government focuses only on state-run defense units like Hindustan Aeronautics Ltd. (HAL) and ignores the private sector. Companies such as Tata Motors, Tata Power, Mahindra and Mahindra, Ashok Leyland, L&T, HCL, Wipro and Infosys have been building their capacities to provide products

and services to Indian Defence sector and needed to be financially supported using this Offset Clause. The Indian aircraft industry today comprises Defence Research and Development Organisation (DRDO) labs, National Aeronautics Laboratories (NAL), Aircraft Development Agency (ADA), civil operators in the aircraft industry such as Taneja Aerospace and Aviation Limited (TAAL), Mahindra & Mahindra (M&M) Aerospace Division, and Tata Advanced Systems Aviation Divisions. It must be ensured that these players are able to upgrade their skills and capabilities in the future while making a fair profit, and thus staying in the aircraft building business with the aim that the Sixth Generation Fighter, which will be inducted into the IAF at some future date, is designed and built in India.

There already have been significant delays in culmination of this deal.It is strongly felt that French side has literally time till end of this year to get this deal finalised as the end of this year will see the present government gearing up for elections next year and would not go in for any such transactions which may seem like an act in haste and spike up some new controversy.

Indian Foreign Minister’s Salmaan Khurshid’s visit to Paris in January 2013 echoes optimism that the deal may be concluded within next three to four months. French President’s upcoming Indian visit in February also could help get over the hiccups in the deal.

BIz@InDIa Special France-India 2013 29

Defence

n

Page 30: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

The visit of newly elected French President Francois Hollande to India in mid-February 2013 is being seen as the start of

new chapter in Indo-French bilateral trade relationship. This will be the second meeting between the two head of states after Hollande came at the helm. The first one took place between Prime Minister Manmohan Singh and Hollande during the G20 summit on June 19, 2012.

India and France have been traditional trade partners in the areas of civil nuclear, space and defence co-operation. France is the fifth largest trading partner of India among EU nations (after UK, Belgium, Germany, and Italy). The level of trade has been growing over the years to reach€Euro

7 billion in 2011. For the first nine months ended September 2012, total trade between India and France stood at €Euro 5.5 billion, according to the data provided by the French Ministry of Economy, Finance and Industry.

India and France: Ally in the making

The defence relations between independent India and France can be traced back to 1949, when India procured mountain kits for troops in Kashmir. The Indo-China war in 1962 was a major turning point for India’s defence policy and it saw a decline in India’s dependence on British for defence equipment. The same period witnessed emergence of France and the erstwhile USSR as

major defence suppliers for India. By the end of the 1960s, the French had proven to be trustworthy source for defence supplies. In 1970s, India again decided to cut its reliance on former USSR. It started looking beyond the Soviet Union and Britain. France came up as the most trusted and natural option. The main reason for looking for other options beyond USSR was the need for technology transfer and local production, which the Soviets were often unwilling to provide. (For detailed timeline on Indo-French defence ties, please refer to the graph above presenting three phases – 1947-62, 1962-71 & 1971-91).

After the disintegration of Soviet Union in 1991, and Indian economy opening up, it put on hold its defence

India and France are taking their defence cooperation to new levels. In the last few years, India has strengthened its defence manufacturing base, which has opened several trade avenues for France.The traditional buyer-seller relationship between India and France is now entering joint development and production phase for the major defence equipment in India. However, the future potential lies on the total technology transfer which requires due consideration from both the sides, observes Rajeev Suman.

DEFENCE

on the

Special France-India 2013 BIZ@INDIA30

growthpathDEFENCE RELATIONS:

Page 31: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

BIZ@INDIA Special France-India 2013 31

programs for few years to act on the overall economic reforms. It only started concentrating on the defence sector after 1998.

In 1998, when India tested another nuclear device in Pokharan, it dramatically changed the strategic vision of India as it clearly distinguished genuine friends from fair-weather allies. The period marked the beginning of the golden era of strategic and diplomatic ties as France took a balanced view of the nuclear test and encouraged a dialogue with India rather than imposing sanctions like other countries. This led to the positive strategic dialogue in 1998 between the two countries. The strategic defence cooperation between the two countries is based on four strategic initiatives involving high-level visits between the heads of state/defence ministries/forces, joint trainings and exercises, joint R&D programmes, and arms deals.

After 1998, there have been regular joint exercises and state level visits to make the relationship stronger. Regular visits of French Chiefs of Defence Staff, the respective Air, Army and Naval Chiefs as well as Defence Ministers, with the High Level Defence Committee have written many chapters in forging relations between the two nations in the realm of defence. Regular naval exercises (Varuna), with the participation of the nuclear carrier Charles de Gaulle, and air exercises (Garuda) have continued since 1998. In 2011, both the countries

took the first ever Indo-French exercise called ‘Exercise Shakti – 11’ aimed at training troops in counter terrorist operations and enhancing defence cooperation and military relations. There are joint R&D projects as a part of Indo-French defence initiatives. Identified projects with France included aero-engines for the Advanced Light Helicopter, Kaveri engine for the Light Combat Aircraft, Shakti engine for Dhruv, the transfer of technology to DRDO for missile development etc. In 2007, India started the tender process to acquire 126 medium-ranges, multi-role jet fighters.

This was a step to strengthen the depleting fleet of the Indian Air Force. This would eventually replace its ageing Mirage fleet. In late January 2012, the Indian government announced the French consortium-led Dassault

Planned outlay for Indian defense forces for the period (2008-2020)

Defense Forces Planned Outlay Acquisitions Planned

Indian Army $55 billion

Plans to acquire Air Mobile Ultra-Light Howitzers, Towed and wheeled 155mm guns, Tanks, Ammunition, Self-propelled guns, Mounted gun Systems, Multi terrain vehicles, Rocket Launchers

Indian Navy $45 billion103 new warships, 4 Nuclear & 24 diesel sub-marines, Aircraft Carriers, Naval Helicopters, Frigates, Destroyers, Naval Aircrafts

Indian Air Force $100 billion

180 Sukhoi Su-30MKI aircrafts, MMRCA to re-place MIG 21s, 120 India Made Tejasfighters, Additional Jet trainer aircrafts, Fifth generation fighters, Up gradation of 60+ Mig 29s, Jaguar and Mirage aircrafts, Airborne Early warning Aircrafts

Rafale winners over the UK–German consortium’s Euro fighter Typhoon. The choice of Rafale for the €20 bn deal has marked the beginning of yet another crucial phase in the bilateral relationship.

An opportunity called ‘INDIA’India overtook China to become

the largest weapons importer during the period 2006-10 with a 30 per cent share of total arms import among the top five importers (Following India in the ranking are China, South Korea, Pakistan, and Greece). The Indian aerospace and homeland security market is a $200 billion opportunity over the period of 12 years (2008-2020). This huge opportunity is coming from mega modernization programmes for all the three defence services (See table for planned outlay).

Defence

1949

Purchased mountain

kits for troops in Kashmir

1953

71 pieces of MD-450 Ouraganaircraft

1959

12 Alizéanti-

submarine warfare aircrafts

1961

3 SA-316B Alouette 3

light helicopters

1962-1968

3 Alizéaircrafts, 50 AS-30 air-to-

surface missiles,

2000 ENTAC and

4000 SS-11/AS-11 anti-tank missiles

1979

Franco-British Jaguar

aircrafts, 1000 R-

550 Magic-1 short

range air-to-air

missiles to equip

combat aircrafts and 40 PA-6 diesel

engines for offshore patrol

vessels

1988

7 PSM-33 air

surveillance radars

1981

MILAN anti-tank missiles

Emergence of Indo-French defence ties. Remained largely stressed owing to colonial issues

1947-1962

India embarked on modernizing its defence system and France surfaced as one of its major defence interlocutor

1962-1971 1971-1991

India’s reliance on Soviet Union supplies. The influence of bipolar politics on indo-French defence cooperation

India-France Defence MoUwas signed; Armaments committee and Defence Cooperation Working Group was established

1982

40 French Mirage-2000

combat aircraft

1956

110 Mystère-4A fighter aircrafts, 164 AMX-13/Model-

51 light tanks

Although not much trade happened

between India and France for this period,

but even after the arms embargo

imposed on India after 1965 war, it continued supplying India with detached pieces for

French aircrafts.

1983

transfer of technology deal for 30

TRS-2230/15

air surveillance radars

1986

9 Mirage-2000

aircrafts

Page 32: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Special France-India 2013 BIZ@INDIA32

These planned outlays from Indian defence forces bring significant and unprecedented opportunities for multinationals, Indian defence companies and Micro, Small and Medium enterprises (MSMEs). If utilized judiciously, these opportunities will have a long lasting transformational effect on whoever is able to capitalize on it and will yield a long lasting fruitful relationship with India.

The main objective of Indian government is to build an indigenous manufacturing base in India with the help of global defence players. Thus, the global players have an opportunity to integrate with the Indian industry to set up their manufacturing lines in India. This could be achieved through joint ventures or collaboration. Once indigenous manufacturing takes root, research and development for the indigenous military and civil aircraft industry is likely to be the other focus area of the Indian government. France has a huge advantage after Rafale deal as it has already established its credibility. In terms of advantages, apart from the attractiveness of this market, India also offers cost advantages relating to basic design and engineering services, components, and assemblies manufacturing. “Western nations have been significantly cutting down their military budgets across board for some time now. Hence, their defence companies have been desperately

Contractors Opportunity The way to grab it

Foreign Defence

Suppliers$84 billion

India imports around 70% of its weapons from International market. During the 12th Five year Plan (2012-2017), Indian imports could reach $84 billion and till 2020 it could raise up to $140 billion.

Domestic firms

$61.2 billion

Indigenous sourcing is a $36 billion market for Indian public and private sector firms. Indian offset policy requires foreign vendors to reinvest 30% of defence deals into Indian firms through offset contracts. It adds up to additional $25.2 billion in offset contracts thus making the total domestic market size of $61.2 billion.

Micro, Small and Medium enterprises

$19 billion

At least 25% of offset contracts are further subcontracted to MSMEs. It makes a $9 billion offset market for them. Another $10 billion of purchases and sourcing from Indian defence PSUs, ordinance factories and DRDO goes to MSMEs. This makes a market of $19 billion for them during 12th five year plan.

looking for export markets, and India fits the bill,” says Laxman Behera, analyst with the Institute of Defence Studies and Analyses. France can very efficiently capitalize on this advantage and it could lead to the integration of French suppliers that directly supply equipment to the Indian government with the local manufacturing sector.

This could further be facilitated through the foreign direct investment (FDI) route. Currently, the limit on FDI in defence stands at 26 per cent and is expected to remain at the same level in 2013. Considering this, it has been suggested that it should be increased

at least 49 per cent, and then ultimately to 74 per cent or even 100 per cent.

French connection: Great expectations

The success of Rafale deal would lead to a multi fold expansion of the size and scope of Indo-French defence relationship in the years ahead. Despite the long standing relationship, France has contributed a meager 2.5 per cent of Indian weapon projects between 1998 and 2005 whereas Russian share was 76.7 per cent for the same period. Similarly between 1992 and 2006, Russia’s share amounted to $13.75 billion while that of France only $797 million. However, with the big deals such as Rafale and the estimated $2.4 billion Mirage-2000 upgrade, France is very well back in business with India. The Rafale deal alone will build a relationship lasting 40 years, during which upgrades and supply of spare parts etc. will add several billion dollars more to its value. The offset obligations (50 per cent for the MMRCA) should entail big investments in India’s defence sector, contributing hopefully, to creating a sorely needed indigenous manufacturing capacity.

“The winner (of the MMRCA contract) will obtain a long and lucrative

Defence

Indo-French Air Exercise Garuda at Istres Air Base in Southern France

Page 33: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

BIZ@INDIA Special France-India 2013 33

association with a rising power and secure a toehold into other parts of India’s rapidly modernizing strategic industries. The aircraft will play a vital role in India’s military modernization as the country transforms from a regional power to a global giant,” says Ashley J Tellis, senior associate at the Carnegie Endowment for International Peace and expert on Indian defence matters. The business has been running smoothly between India and France, with some small hiccups. There are areas where the new French regime could work with India to establish a closely held relationship. Before President Mitterrand’s second visit to India in February 1989, France concluded a contract for the feasibility study of the construction of an aircraft-carrier in the dockyards of Cochin for the Indian Navy; this project never fructified, but the intention was evident. With the upcoming visit of Hollande, one can expect him to remove the prevalent hiccups to ensure healthy relationships in the future. “India is no longer in the market for a buyer-seller, patron-client defence purchase relationship. India is hungry for state-of-the-art defence technology and the joint development of future weapons platforms and defence equipment. The French are attractive because they are willing to offer technology transfer without too many restrictions being imposed,” says retired Brigadier Gurmeet Kanwal, Director, Centre for Land Warfare Studies (CLAWS).

Future prospectsFrance has the expertise on the

entire range of defence requirements that India has. Although it is not practically possible for India to have France as the sole supplier, France is in a sound position to offer a wide range of products or services to the Indian armed forces. France can thus contribute to building and consolidating India’s industrial and technological base, through transfers of expertise, technology and know-how. The head of states in their meeting are expected to negotiate

with efficacy on these points specially the technology transfer.

There are some issues that have been acting as hindrances in a healthy relationship. India is concerned about high prices, commercial cupidity, political leveraging etc., while the French suggests India to work upon slow decision-making, lack of transparency, bureaucratic apathy and arbitrariness.

There are a few projects under active negotiation that could cement the Indo-French defence partnership. The joint development and manufacturing of the Maitri, the Short Range Surface to Air Missile (SR-SAM) project has got French, as the lowest bidders. France also expects the Kaveri engine project to be awarded to them in the near future. They are also eyeing the contract for six additional submarines following up on the Scorpene deal. In the re-tender for $500 million 197 helicopter deal, the French, pitted against the Russia and Italy. With the US not in the bid, France is confident about success. Earlier in 2007, the deal was awarded to the US but was later cancelled. A fresh call for bids has been made by the Defence Ministry for six Refueling Aircraft worth $1 billion, with the life cycle costs of acquisition to be evaluated this time. Earlier the deal was won by the military version

of the Airbus 330 aircraft but was later cancelled. The French are the major bidders with lower life cycle costs in a number of operational parameters.

France is under great pressure from competitors such as Russia, Israel, Italy, UK and the US. In addition, there is very limited scope of domestic orders within Europe due to the peaceful environment. China is under an arms embargo and though the French have broken the embargo in the past, but it does limit the sales that France generate in that market. Thus, the attractiveness of the large Indian defence market for the French defence industry is apparent. “It is a question of having a basket of choices. If one does a cost-benefit analysis on a subjective term, France is a major player, since their technology is at par with anything being offered by the United States. India has to extract the maximum mileage out of what is being offered by France,” says Deba Ranjan Mohanty, senior fellow, Observer Research Foundation. The highest level of French leadership will need to build a genuine defence partnership with India, including major technology transfers. Mutual interest should, however, assure France a befitting position in the Indian defence space. After all, it is a $200 billion worth of opportunities from India! n

Defence

Kaveri test bed

Page 34: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP
Page 35: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP
Page 36: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP
Page 37: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Panoramic Visit open daily from 9.30 AM to 11 PM+33 1 45 38 52 56 www.tourmontparnasse56.comM Montparnasse-Bienvenüe

- RC

Sei

ne 7

5B17

6.

Come fall in love with Paris!Observation fl oors Montparnasse tower

- RC

Sei

ne 7

5B17

6.

220x297_jour_UK.indd 1 16/10/12 17:44

Page 38: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Business

Feb Special 2013 BIZ@INDIA04

Food Processing

It is quite perceptible that the food processing figures have transformed in India over the last few years and the government’s decision to allow 100 per cent FDI, has cleared the path formany nations to contribute in the sector’s growth by introducing their technological know-how and France is the one. Realising the need for cooperation between the two countries to foster the growth of the agro-food industry in India, an administrative agreement was signed at SIAL Food Fair in October 2012. Such initiatives would strengthen the ties and script a successful growth story in the food processing sector, observes Ravinder Bhatia.

Bountiful opportunities

Page 39: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Business

BIZ@INDIA Special France-India 2013 39

Rs 2,500 billion (US$ 69.4 billion) out of which value-added food products comprise Rs 800 billion (US$ 22.2 billion). India’s food processing sector covers fruit and vegetables; spices; meat and poultry; milk and milk products, alcoholic beverages, fisheries, plantation, grain processing and other consumer product groups like confectionery, chocolates and cocoa products, soya-based products, mineral water, high protein foods etc. Growing at about 14 per cent, the processed food industry has started attracting increased investment to cater to both, the domestic and export demand. The food processing industry contributes around 10 per cent to

The food processing industry, widely known as sunshine industry of India, is witnessing newer heights.

With the shift in end user needs, a rapid progression in the global food landscape can be witnessed. There is an increasing demand for processed and convenience food. Frenzied schedules have made ready-to-cook (RTC) and ready-to-eat (RTE) food a new favourite among the younger generation. However, the supply side has failed to keep up with the demand. The accomplishments of the green and white revolutions have, however, not been matched by simultaneous developments in supply chain management, and in new technologies for better processing, preservation, and storage of food. Pockets of shortages and near starvation, substantial wastages due to spoilage, quality deficiencies, and inadequate returns to the farmer are still very much in evidence.

The imparity between the current demand and supply offers immense scope for the manufacturers, retailers and suppliers of processed food.

In India, agricultural and dairy sectors have achieved remarkable successes over the last three and a half decades. Besides being one of the largest producers of food grains it also stands second in the world in the production of fruits and vegetables,

and first in milk production and livestock population, which makes this sector further lucrative, providing much needed food security to the nation.

India’s position in the global export of agricultural food was a distant 21st for the year 2007, with a share of 1.6 per cent. While the sector grew at an impressive 14.7 per cent in 2008-09 despite the global slowdown, the figures are transforming substantially as the export of processed food and beverages is growing steadily. Currently of the total production, only six per cent of fruits and vegetables, 26 per cent of marine, six per cent of poultry, 20 per cent of buffalo meat and 35 per cent of milk is processed. This is quite low in comparison to the food processed in developed countries where 60 to 80 per cent of the food items are processed. The Ministry of Food Processing Industries (MoFPI) aims to increase India’s share in the global processed food trade to three per cent in the next eight years. As per estimates, the Food Processing Industry (FPI) ranks fifth in size in the country, representing over six per cent of GDP. It accounts for around 13 per cent of the country’s exports, six per cent of total industrial investment and approximately 12-15 per cent of manufacturing GDP. The turnover of the total food market is approximately

Many processed food brands are now available at stores in India

Major Challenges for the Indian Food Industry:•Consumer education that processedfoodscanbemorenutritious• Lowprice-elasticity forprocessed foodproducts•Needfordistributionnetworkandcoldchain•Backward-forward integration fromfarmtoconsumers•Developmentofmarketingchannels•Development of linkages betweenindustry,governmentandinstitutions•Taxationinlinewithothernations• Streamliningoffoodlaws

Page 40: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Business

Special France-India 2013 BIZ@INDIA40

India’s manufacturing GDP and 13 per cent of the country’s export.

Indo-French Collaboration opportunities

Charan Das Mahant, Minister of State for Agriculture and Food Processing Industries, Government of India and Guillaume Garot, Deputy Minister of Food Processing in the Ministry of Agriculture, Food Processing Industry and Forestry of Government France signed an administrative agreement on October 24, 2012 between their respective ministries to foster closer cooperation between India and France in the area of agro-development and food processing. The signing took place at the Salon International d’alimentation (SIAL-2012) food fair in Paris. The agreement provides for cooperation on scientific, technical and training matters; exchange of technical and scientific skills, including manpower and other information for the benefit of the food processing sector aimed at strengthening the post-harvest management capacities; organizing workshops, consultations, conferences, capacity

building programmes, exchange of scientific information and general documentation in the area of food processing with particular focus on supply chain logistics, packaging, food safety and quality and food processing technology; encouraging business to business engagement in the field of

food processing and trade, and other forms of technical cooperation aiming at promoting the development of the food industry of the partners.

In addition, India expressed hope that the Agreement will help deepen the strategic relationship between Indian and France and India

Many foreign nations are contributing to the country’s growing agro development and food processing sector and France is the one.

In terms of policy support, the ministry of food processing has taken the following initiatives:• FormulationoftheNationalFoodProcessingPolicy•Completede-licensing,exceptforalcoholicbeverages•Declaredasprioritysectorforlendingin1999• 100%FDIonautomaticroute•Excisedutywaivedonfruits&vegetablesprocessingfrom2000–01• Incometaxholidayforfruits&vegetablesprocessingfrom2004–05•Customsdutyreducedonfreezervanfrom20%to10%from2005–06• ImplementationofFruitProductsOrder• ImplementationofMeatFoodProductsOrder•EnactmentofFSSBill2005•FoodSafety&StandardsBill,2005

Apart from these initiatives, the Centre has requested state Governments to undertake the following reforms:•AmendmenttotheAPMCAct•LoweringofVATrates•Declaringtheindustryasseasonal• Integratethepromotionalstructure

Page 41: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Business

BIZ@INDIA Special France-India 2013 41

represented not only a huge market for processed agro and food products but given the availability of abundant and diverse raw material and a favourable geography, was ideally suited to become an export hub for such products. India invited French firms, having expertise in the field to invest in the food processing sector in India. The Government of India allows for 100 per cent Foreign Direct Investment in the Food processing Sector.

In India, most foods are consumed in the fresh form and a small quantity is processed for value addition. In recent years, however, the market for branded processed food products has expanded. Food processing involves any type of value addition to the agricultural produce starting, the post harvest level. The processed food industry provides safe convenience foods to consumers, and promotes diversification and commercialisation of agriculture by providing effective linkages between the farmer and consumers in both domestic as well as international markets.

India is said to have 52 per cent cultivable land as against the world average of 11 per cent. It has 15 major climates of the world and has 46 out of 60 types of soil, making it the number one contender for becoming a global sourcing hub.

The sheer magnitude of the figures indicates the vast opportunity that lies ahead for entrepreneurs in this space. Especially for SME entrepreneurs as organized players remain at the fringe

of this market accounting for close to only a third of the country’s total agri-processed products. A large part of the market is dominated by unorganised and small-scale sectors.

Constraints & growth driversGrowing urbanization, increasing

disposable income, emergence of organised food retail, changing lifestyles and food consumption patterns are the key factors driving growth for processed foods in India. These are post-liberalisation trends that have given an impetus to the sector.

Consumption patterns in India have been undergoing a visible shift. Earlier, the share of cereal products was the highest, followed by milk & milk products, vegetables, edible oil

and meat products. However, in recent years, the growth rates for fruits, vegetables, meat and dairy products have been higher than cereals and pulses. This shift in turn implies that there is also a need to diversify the food production base to match the changing consumption preferences.

This shift in consumption follows the pattern observed in developed countries in the evolution of the global food demand. There is a shift from carbohydrate staples to animal sources and sugar. Going by this pattern, in future, there will be increasing demand for prepared meals, snack foods and convenience foods and further on the demand would shift towards functional, organic and diet foods.

Highest priority has been accorded by the Government for the development of infrastructure. The Government has already taken several initiatives on this front which include developing of food parks, packaging centres, modernised abattoirs, integrated cold chain facilities, irradiation facilities and value added centres. The initiative to develop food parks was taken primarily in order to assist the small and medium enterprises which are unable to invest in capital intensive activities. So far, 22 food parks have come into operation, which provide common facilities like cold storage, food testing and analysis laboratories, packaging centres, etc.

FPI prospects in India• Largecropandmaterialbaseofferingavastpotentialforagroprocessingactivities• SettingofSEZ/AEZandfoodparksforprovidingaddedincentivetodevelopgreenfieldprojects•Risingincomelevelsandchangingconsumptionpatterns• Favourabledemographicprofileandchanginglifestyles• Integrationofdevelopmentincontemporarytechnologiessuchaselectronics,materialscience,bio-technologyetc.offervastscopeforrapidimprovementandprogress•Openingofglobalmarkets

Threats to FPI in India•Affordabilityandculturalpreferencesoffreshfood•Highinventorycarryingcost•Hightaxation•Highpackagingcost

n

Structure of the Indian Food Processing IndustryUnorganisedSmall Scale IndustriesOrganised

42%25%

33%

Source: FIDA / Ministry of Food Processing Industry

India invited French firms, having expertise in the field to invest in the food processing sector

in India. The Government of India allows for 100

per cent Foreign Direct Investment in the Food

processing Sector.

Page 42: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Gujarat enjoys a vantage due to its nearly 1,600 km long coastline, and also for being the nearest maritime

outlet to the Middle East, Africa and Europe. This provides a fillip to the flourishing manufacturing and trading base, besides offering an array of opportunities for development of new nodes. Gujarat boasts of a per-

capita GDP that is significantly above the Indian average. Key industrial sectors in the state include gems & jewellery, engineering, chemicals & petrochemicals, oil & gas, textiles & apparels and food processing, with emerging sectors including IT/ITES, auto/automobile, ship repairing/building, and tourism and knowledge hubs. Being a thriving industrial state

and hotbed for investments, Gujarat accounts for 15.14 per cent ($ 114.52 bn) of the total investments in India; the highest amongst all states in India.

Based on the strengths of the state, the Government of Gujarat is actively working on various initiatives and ideas to keep the momentum going on a broader plane to accelerate the growth of its core industry sectors. One such

Gujarat continues to enjoy a distinct position in the Indian economy. Over the years, the state’s Chief Minister Narendra Modi has put the state on the global business map through a dynamic and proactive administration. The government has also used very effectively its flagship business event, Vibrant Gujarat, which was organised in January in the state and which drew the who’s who of Indian business and delegations from over 120 countries around the world. Biz@India brings you nuggets from the summit.

EVENT

Special France-India 2013 BIZ@INDIA42

Vibrant Gujarat 2013 GujaratPositioninG onGlobal business maP

Page 43: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

BIZ@INDIA Special France-India 2013 43

initiative is the recently concluded “Vibrant Gujarat 2013” summit which became an epitome of a visionary approach of the Gujarat Government towards inclusive and sustainable development. The sixth edition of the summit provided enormous prospects to the state to display its strengths, progressive stand, initiatives taken to improve governance, investor friendly climate and art and culture of Gujarat.

With 17,719 business proposals and promised investments worth Rs 40,000 billion, the Vibrant Gujarat 2013 Summit was transformational and revolutionary – both in its coverage and scale. It provided a platform for various states of India and other countries to cooperate and explore attractive business opportunities. The summit was marked with an air of optimism and Chief Minister Narendra Modi exuded that confidence, who swept through the Gujarat elections in December 2012 to become the chief minister of the state for the fourth time. “The past five summits have been a resounding success and made a strong contribution to the development journey of Gujarat by attracting investments worth Rs 820 billion. These summits have immensely contributed in making Gujarat a global business hub and been instrumental in creating innumerable opportunities for our people.”

The presence of bigwigs of industry, top-notch companies, and states’ and nations’ participation was ample evidence that Gujarat would be the centre of investment action. It was, perhaps, one of the best organised and best conducted summits in recent times. The USP of the summit was the range and depth of subjects discussed and the attendance and excitement at Gujarat, one of the ideal investment destinations in India. Over 125 seminars, discussions, conferences and talks were the part of the summit.

Generally conclaves turn out to be eat, drink and make merry jamborees but not this one. There was a seriousness of purpose, there were interesting presentations and the

organisers had done their homework well and got together a slew of interesting speakers from home and overseas. In an endeavour to strengthen its relations with the world, Gujarat through this summit created new ambassadors in 121 nations. “This Summit was a marvel for people from abroad. I have been for conferences including all over the world but at this scale, with this minute detail and so

many programme- there are very few events,” pointed out Modi.

Small and Medium Industries Sector was high on the agenda. It played pivotal role as a key driver of employment and innovation. Record number of ‘Investment Intentions’ were signed by SMEs during the summit. Out of 17,719 investment intentions signed during the summit, 12,886 investment intentions came from the SME sector. “I want to incorporate new technology, make new innovations in the SME sector and ensure a skilled work force for the SME sector. We want an economy with mass production and production by masses. The SME sector can help in generating substantial employment for the youth,” said Modi, adding, “The Gujarat Government’s consistent efforts have borne fruit and Gujarat’s SME sector has grown at an astounding pace. While the growth rate for SMEs in India is only 19 per cent, the rate of growth for the SME sector in Gujarat is 85 per cent.”

Event

The present business leaders from around the world hailed the Gujarat’s development initiative

“The enabling environment and the infrastructure set up by the Government and its various institutions, have been catalysts and have influenced the decisions of many companies. In Gujarat we see a culture of implementation” - Cyrus Mistry, Chairman, Tata Group

“With excellent infrastructure, availability of land and water, fast-growing cities, a stable political climate, the state also fosters a good work culture, good governance, and wonderful facilitation mechanism. Therefore, the summit is a robust initiative”- Sudhir Mehta, Chairman, Torrent Pharma

“We have a government focussed on trade and diversification. There are particular sectors, which provide unlimited potential, for the two countries to collaborate” - Jason Kenney, Minister of Citizenship, Immigration and Multiculturalism, Government of Canada

“I was humbled by the hospitality I had received in Gujarat. I would inform the Mauritian Cabinet about the large investment opportunities in Gujarat and an investment mission would be sent to Gujarat”- Sheila Bappoo Gosk, National Social Security Minister, Government of Mauritius

What they say

Small and MediumIndustries Sector was high on

the agenda. It played pivotal role as a key driver of employment

and innovation. Record number of ‘Investment Intentions’ were

signed by SMEs during the summit. Out of 17,719 investment

intentions signed during the summit, 12,886 investment intentions came from the

SME sector.

Page 44: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

The number game

Special France-India 2013 BIZ@INDIA44

Inauguration ceremony of Vibrant Gujarat 2013

Another area of focus of the 2013 Vibrant Gujarat Summit was the knowledge sector. Over 145 universities from all over the world converged under a single roof and Gujarat prepared a blueprint to take the youth ahead. “There would be many people for whom Vibrant Gujarat 2013 was all about money and monetary investment but the truth is that if there was strength of investment in one sphere, it was knowledge and knowledge was a major focus area for this year’s summit,” stated State’s Chief Minister. Through the summit, the focus was also on technology exchange, skill development and innovation so that youth gets the best of opportunities to fulfil their various dreams.

One of the most interesting facets of this year’s Summit is the Global Trade Show 2013. This is India’s biggest ever exhibition, spanning across over 1 lakh square meters and one that

• 127 events• 31 events on the focus sectors – Knowledge, sustainability, innovation and youth empowerment• 145 universities participated• 840 speakers• 2,100 foreign delegates• 2,670 strategic partnerships• 17,719 investment intentions• 12,886 investment intentions in SME sector• 58,000 delegates at global trade show• 121 nations participated• 373,000 employment generation projected

Event

involves 1200 companies displaying over 25,000 products. A separate pavilion has been given to promote entrepreneurship among women.

The vibrancy and buoyancy of Gujarat’s economy is unmistakably clear today, supported as it is by the strong entrepreneurial culture of its

people and the strong infrastructural focus of its policy makers. All these factors provide the state an ideal platform to leapfrog to a much higher growth trajectory, making its performance comparable to global benchmarks and open floodgates for investments. n

Page 45: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

www.indes-magazine.com

auAbonnez-vous

INDES !

IndiaMedia

e-magazine

Page 46: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

INTERVIEW

For the past few months, following many rounds of debates, the Indian government has launched a series of

reforms in various economic sectors to increase the flow of Foreign Direct Investments (FDI). The most recent of these reforms concerned the opening of FDI in multi-brand retail, civil aviation, insurance, broadcasting and power exchange. The opening of the economy is definitely a good sign

Special France-India 2013 Biz@india46

to attract more French investors and companies to India.

Because of the European economic crisis, France and India have not yet met the target of raising the bilateral trade to €Euro 12 billion in 2012, fixed by the two governments. However, the trade relations between the two countries have increased steadily over the past few years. According to the economic services of the French Embassy, India counts at the moment

more than 750 French organizations, including head offices and their subsidiaries employing more than 240,000 Indians.

French presence in IndiaAlmost all of the major French

companies are present in India and the technological strengths of France makes it a leader in sectors such as aeronautic, railways, food processing and transport amongst others.

Over the years, the number of French companies doing business in India has more than doubled and these companies have marked their presence in India in the sectors like automotive, aviation & defence, infrastructure, etc. And, French SMEs are exporting more and more to India, looking for new market opportunities. French know-how and technology are well-recognized by Indians. As investment opportunities are galore, both the sides have to understand each other’s work culture to strengthen their business relations, say Laura Prasad, Secretary General, Indo-French Chamber of Commerce and Industry; Roxane Sabatier, Manager, Memberships & Events and Pierre Labail, Manager, Trade.

Ready forIndo-French business:

take-off

Page 47: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Business

Biz@india Special France-India 2013 47

Last year, the major investors were automobile manufacturer Renault, float glass manufacturer Saint-Gobain and Michelin for tyres, all of them having set up new factories in the vicinity of Chennai. The French investments in India cover a multitude of sectors. All those sectors have known for the past few years a double-digit growth and are a source of opportunities for French companies, MNCs and SMEs.

Aeronautic & Defense SectorsAeronautic and defense must be

among the most promising sectors for France in India. The sales of Airbus are always dragging the French exports to India but the main focus of attention lately is the contract to be signed between Dassault Aviation and the Indian Government for the 126 Rafale fighter planes. Despite the defense sector being still partially closed to FDI, many French Dassault suppliers will probably follow their client and try to find Indian partners in the months to come.

Other companies like Eurocopter and Thales also found good opportunities in this field. Another example of French investment and development in India is DCNS; the French warship maker just acquired a 15 per cent stake in Pipavav Defense. DCNS, which is currently working on the production of Scorpene class submarines, is also expected to bid for a new project to provide the Indian Navy with new submarines.

Infrastructure SectorThe infrastructure sector is one of

the other booming sectors in India. Infrastructures – transport mainly – are one of the main challenges of the country today and need improvement and modernization. The French know-how in this sector is already well recognized. For roads, companies like Egis, Coteba, Systra are sharing their engineering experience, Total Bitumen, Fayat, Vinci, Colas are bringing equipment and materials.

The railway sector also promises big opportunities for French companies

with many new Metro projects in cities like Chennai, Bangalore or Mumbai. All the big French names are present: Alstom, Thales, Vossloh Cogifer, Systra, Veolia, etc.

Two other French giants, Veolia and Suez are also present in the specific field of water treatment. Both have signed contracts with Indian cities like Delhi to improve the water production and distribution, including renovation and extension of pipelines to enable residents to have a 24 hours access to

water. Both are also very active in cities like Chennai and Mumbai through Public Private Partnerships (PPP) where they have designed, installed and improved water treatment plants.

Automotive SectorThe automotive sector also

represents a big scope of development for French companies, who are facing

difficulties on European markets. In India, the sales of cars and two-wheelers are booming and some other countries like Japan have a very strong presence in India. There is no reason why French companies could not find opportunities.

With its partner Nissan, Renault invested in a new factory in Chennai in 2010 and has already come to the market many new models such as the Fluence, Duster and Koleos, all adapted to the needs of the Indian customers. The French automobile manufacturer is also looking to produce an ultra-low cost model soon.

Companies like Saint-Gobain, manufacturing glass for windshield and Michelin, who is a world leader for tires, have also set-up operations in the State of Tamil Nadu. Some cities like Pune have also become a big industrial hub for French automotive players. Automotive components manufacturers like Valeo or Faurecia have understood the importance of being close to their customer base and Faurecia inaugurated in 2012 a new R&D center for automotive interior system in Pune.

The Indo-French relationshipThe ties between France and India

go back a long way in many other sectors and the activities of many French companies have an impact on the daily life of Indian people which

The ties between France and India are going back a long way in

many other sectors and the activities of many

French companies have an impact on

the daily life of Indian people which is often

underestimated.

French automobile manufacturer Ranault is one of the major investors in India

Page 48: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Business

Special France-India 2013 Biz@india48

is often underestimated. CapGemini, in IT, is employing more than 40,000 Indians; it is the largest French employer in India and forecasts to have a workforce of 70,000 employees within the next three years.

Indians are now flying with French aircrafts, using electric components manufactured by Legrand, Schneider, Sicame, Socomec, Somfy, eating Danone products, driving French cars, buying groceries in Auchan supermarkets, using cosmetic products from L’Oréal, Pierre Fabre or L’Occitane and using cement from companies like Lafarge or Vicat. The French companies may not always be visible but they are very much present in the life of many Indians.

Lots of French companies have large long-term projects of development in the country. In hospitality, the Accor Group, which currently has 20 hotels pan-India, is planning to open more than 55 by 2015 with brands like Novotel, Sofitel, Pullman, Ibis, Mercure, etc. L’Oréal, another famous French company, is planning to do major investments in India in the next five years – expansion of manufacturing capacity, R&D centers, improvement of its supply chain - to become one of the major players in the country

and increase their market share. It inaugurated its 6th world Research and Innovation Centre in India in January this year in Mumbai. Banks like BNP Paribas, or pharmaceutical companies such as Sanofi Aventis, are other sectors that are developing very well in India.

These examples of growth and development are prone to multiply; but an interesting point to notice is that in addition to the major French groups being present in India, more than 80

per cent of the exports are done by French Small and Medium Enterprises (SMEs) with less than 250 employees. French exports have reached Euros 3.1 billion between December 1, 2011 and November 30, 2012, as against the

Euros 2.8 billion for the same period for the previous year, a 10.7 per cent increase.

The importance of SMEsThe role of French SMEs is therefore

not to be taken lightly. French SMEs are exporting more and more to India, looking for new market opportunities in a country where the economy is still growing at more than six per cent despite the global crisis. Many of them have also realized that it is important to be present in India in order to be recognized locally and increase the volume of their sales in the country, setting up liaison offices or subsidiaries in India in all sectors.

However, it is usually best for SMEs to get the support from the multinationals. Thus, the best solution for French SMEs would be to accompany the French multinationals for which they are already a supplier in France or any other country, in their development in India, and benefit from their growth.

The Indo-French Chamber of Commerce organized at the end of last year a prospective mission for seven French SMEs in the IT sector related to the aeronautic sector. Many of these French SMEs are already working with Dassault Aviation in France and they know they will have opportunities in India once the deal is signed and the construction of the Rafale fighter starts. Some of them have already signed contracts with Indian partners and will then be ready to grab the upcoming opportunities linked to this deal. This will ensure win-win situations for both the French companies and their Indian partners, thus developing even further business between the two countries.

Many French SMEs, which have already developed their activities in China, are now looking at the Indian market. They have already experienced the difficulties of exporting to or setting up an entity in a large and complex country, thus coming to develop their business in India more ready and aware of what is awaiting them. They also know that developing their operations

Two other French giants, Veolia and

Suez are also present in the specific field of water treatment. Both have signed contracts with Indian cities like Delhi to improve the

water production and distribution

L’oreal eyeing big investments in the Indian market

Page 49: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Business

Biz@india Special France-India 2013 49

One of the business events organised by IFCCI to foster relations between the two nations

in India will take time and that they would need suitable and reliable local partners to support their development and grab the many opportunities that exist in India.

Intercultural aspectsThe intercultural and business

culture differences between the two cultures are also an aspect to take into consideration when looking at the implementation of French companies in India. It is very important for these companies to understand these differences and work towards surpassing them in order to establish themselves in India.

The way of conducting business in India is very different from France. There are some practical guidelines to follow in order to better interact with the Indian business world.

To start off, a company wanting to implement itself in India must plan adequate resources in terms of manpower, finances and time for prospecting and investing. Then, one has to know that everything in India takes more time than expected and that there is nothing to do about it. You have to be ready to come back several times and meet with the potential partners more than once.

Looking into the financial situation and commercial reliability of your potential partner is also vital and in order to do so a company should conduct due diligence as well as use the services of the right professionals such as lawyers before signing any contract or partnership.

Lastly, the choice of location for implementation is an important factor to take into consideration. One needs to know where their market share exists and where the business is most likely to do well. Also, having a presence in India to follow your operations and relations with your partners is one of the keys for a successful implementation in

the Indian market. A company should not overlook this by thinking that they can handle the day-to-day tasks from a distance. They have to be hands on and completely dedicated.

Now looking into the cultural aspects, the Indians and French have different codes of conduct. For a French company wanting to do business in India there are certain business behaviors to know and follow in order not to offend and better understand your local interlocutor.

For example, one must not be taken aback by the Indian curiosity and the personal questions that might be asked prior to initiating business discussions. Indians like to know who they have in front of them under all aspects, personal and professional.

Another factor to take into account is the respect of hierarchy, which is still very much embedded in the Indian business world and society overall. Each person has his designated place in the company and it is key to identify who the decision maker is. Along with this, building personal relations is very important. Indians like to feel that their interlocutor could be part of the family and they need to feel at ease with the person. This will build stronger business relations.

For French companies wanting to set-up in India, the key word would be ‘patience’. Everything in India takes a

lot of time, you have to be persuasive without being rude and have constant follow-up to get things done. In the end, it all works out but one must think of planning ahead of time.

Finally, it is common for meetings to get delayed, postponed or cancelled but this must not put you off. Indians are, as we would say, ‘fashionably’ late, following the IST, i.e. “Indian Stretchable Time”. But once one knows this, it is easier to take a step back and put things into perspective.

ConclusionOverall the presence of French

companies in India may not be as strong as in other countries like China, but there is definitely a positive trend with more companies coming to start operations in India. The French know-how and technology is well-recognized by Indians, however to develop their activities in India, French companies need to understand the market better, adapt their products and prices and find the right partners.

The French companies willing to settle down in India must be prepared, accompanied by the right professionals and patient in order to achieve success in this country. Staying positive despite the difficulties encountered is a challenge that needs to be overcome in order to move forward in the Indian market. n

Page 50: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

BUSINESS

As 2013 begins, the Indian IT services companies can perhaps look back with some degree of satisfaction at

2012, at least as far as the European markets are concerned. For the market leader Tata Consultancy Services, the quarter ended September 2012 was very strong and so was the December quarter. Even Infosys which had been suffering and churning out an under-par performance, surprised analysts with a strong performance in December. HCL Technologies has emerged with

Special France-India 2013 BIZ@INDIA50

surprisingly strong results throughout the year, making it a strong challenger for the position currently occupied by Infosys and Wipro as the number three and number four players in the Indian IT services market, behind TCS and Cognizant Technologies.

For all the companies, one of the key markets impacting their performance was Europe and unlike the predictions in 2011, the economic crisis in the Eurozone did not translate into a drought of business for the Indians. It turned a positive factor, instead. Even

markets such as Germany or France, that have traditionally been more reluctant towards offshoring, there are signs of opening up to the idea of outsourcing IT services to India as a way to keep their costs under control and gaining greater flexibility in light of the increasingly volatile markets in the Eurozone and beyond.

And not surprisingly, the last quarter of 2012 has seen a fair bit of activity by the Indian Information Technology services companies in continental Europe, notably the DACH countries.

Five years after the Indian IT companies began focusing on the European market in a serious way, despite and partly because of the global economic crisis, their efforts have begun to bear fruits, even though they still have a long way to go.

Indian IT

Christine Nayagam

comes of age inEurope

Page 51: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Business

Special France-India 2013 BIZ@INDIA 51

It began with Infosys, the third largest player that has been going through a rough patch since 2010, acquired Zurich-based Lodestone for $350 mn. Lodestone brings more than 200 clients across industries including manufacturing, automotive and life sciences, to the Infosys pool of over 700 clients. Post-acquisition, the combined consulting practice focusing on SAP programmes will deliver revenues of more than $1 billion, firmly establishing Infosys amongst the global leaders in SAP consulting. Cognizant, the number two player, also announced its own deal, the acquisition of six IT consulting and services firms belonging to the Hamburg-based C1 Group, with a focus on manufacturing and logistics, energy and utlilities, and financial services. The acquisition strengthens Cognizant’s presence in Europe, giving it a bigger footprint in Germany and Switzerland.

The trend of accepting offshoring in Europe is expected to become stronger and more widespread in 2013 as the year looks set to be the worst period for the Eurozone since the crisis began in 2008 and hence pushing businesses throughout the zone to take more drastic measures to stay afloat. Most Indian IT companies seem to have understood this reality and are trying to come up with strategies and ideas to capture this new business that promises to shore them up even while the US economy begins to come back on rails.

Of the three key European markets – Germany, France and the UK – the

best growth opportunities exist in the first two countries. The UK already contributes significantly to the overall revenue base for most Indian IT firms. It must be pointed out that the Indian firms continue to bag fairly good-sized deals from the public and private sector as well. Notable among these is the multi-year contract that TCS bagged from the UK government’s Home Office Department to manage the technology requirements of its newly-formed Disclosure and Barring Service (DBS). The value of the contract, with an initial tenure of five years, is worth nearly $230 mn and hence could make it one of the largest deals the company

has bagged in Europe in recent years. Other players of varying sizes have also reported deals from this market.

Lured by these deals, for over three decades now, the Indian IT companies have been too focused on the US and the UK markets. But this has come at the expense of other equally promising markets, notably Germany and France in the European Union.

The investments and focus put by the Indians in the UK are many times larger than the investments made in the other large economies of the EU. As the economic crisis has hit the world, the Indian IT has found their growth limited due to the over-dependence

8.9%

14.2%

-0.7%

2.8%

12.6%

-2.6% -2.6%

9.8%

-3.9%

1.6% 1.8%

3.4% 3.7%

9.4%

14.8%

1.9%3.4%

14.2%

0.2% 0.7%

11.2%

0.0%

2.1%3.3%

4.1%4.8%

-5%

0%

5%

10%

15%

20%

Brazil China France Germany India Italy Netherlands Russia Spain Switzerland United Kingdom

United States

Rest of World

Evolution and forecast 2011-2013 Market share by country - IT services

2011/12 2012/13 © PAC 2013

© PAC 2013

Brazil2%

China2%

France5%

Germany6% India

1%

Italy2%

Netherlands2%

Russia1%

Spain2%

Switzerland1%

United Kingdom7%

United States37%

Rest of World32%

Market share by country in 2012 - IT services

Page 52: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Europe, Middle East &Africa (EMEA) - Leading Providers of IT Services* Rank Company Market Share in 2011

1 IBM (incl. Sterling Commerce as of Aug 10) 8,0%2 HP 6,0%3 Atos (incl. SIS pro forma) 3,8%4 Accenture 3,7%5 Capgemini 3,6%6 T-Systems 2,4%7 Logica 2,1%8 Fujitsu 1,7%9 CSC (incl. iSOFT as Jul 11) 1,6%

10 Capita 1,2%11 TCS (Tata Consultancy Services) 1,0%12 Oracle (incl. Sun as of Jan 10) 1,0%13 Amadeus 1,0%14 BT Global Services 0,9%15 Steria 0,9%16 Adecco (incl. Modis) 0,9%17 Tieto 0,9%18 SAP (incl. Sybase as of Jul 10) 0,8%19 Wipro 0,8%20 Getronics (KPN Corporate Market) 0,7%21 Indra 0,7%22 Orange Business Services 0,7%23 EVRY (former EDB ErgoGroup pro forma) 0,7%24 Dell (incl. Perot Systems) 0,7%25 Deloitte 0,6%26 Infosys 0,6%27 Computacenter 0,5%28 Microsof t 0,5%29 Xerox (incl. ACS as of Feb 10) 0,5%30 Randstad (incl. Sapphire/Vedior) 0,5%

© PAC 2013*comprising Hardware Maintenance, Project Services, and Outsourcing**FY End used for 2011

Special France-India 2013 BIZ@INDIA52

upon the two principal markets Now, the growth opportunities for Indian IT service providers in the UK market do seem rather limited, simply from the perspective of the market penetration and saturation levels for the Indian companies. Moreover, the UK economy is headed for a another difficult year and the Conservative-led coalition government has been making strong noises about protecting British jobs and cracking down on immigration and even short-term employment visas. Hence, the Indians may struggle to maintain the share of business coming from the UK in their overall revenue stream in the year 2013.

Over the last five years or so, the Indian IT firms have begun to look more seriously at the opportunities in Germany and France, mainly in an attempt to hedge against the US and UK. Hence, the share of revenues from UK, as part of overall European

revenues, has been declining since 2010, while continental Europe has been increasing its share. For instance, for TCS, continental Europe generated nearly $1 bn last year while UK accounted for $1.5 bn, narrowing the gap between the two markets.

Even if UK remains for Indian IT players key in their revenues (more than 50% in Europe), in PAC’s point of view, in future, the real growth opportunities for the Indian players lie in Germany and France. While Germany is already becoming a sizeable market, with several companies raising nearly 5-6 percent of their total revenues from EU’s largest economy, France is still way behind and accounts for around 0.5-0.75 percent of the total revenues and hence they can potentially increase the revenues from Germany and France several times the current levels. What is needed for both the countries is a better strategy, coupled with appropriate investments and the

right local talent which can really swing the market for the Indian players. The acquisitions made by Cognizant, and Infosys clearly point towards this trend as through the acquisitions, these companies gain immediately a bit of all the three elements currently missing from their portfolio.

Among the key sectors where Indians are strong are manufacturing (strongest vertical for Wipro and Infosys) and financial services (HCL). Compared to the market size, all Indian IT players are also very well positioned in Telco and Retail.

To advance in both Germany and France, for the Indian players, acquisition remains one good way to gain traction and market share in the Eurozone and they are wtaking the steps, albeit still rather slowly. This may just be the start of the buying season for the Indian IT and we can reasonably expect to see more deals in the year 2013. n

Page 53: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Located in the French Alps, family-owned company Maped Group designs, manufactures and distributes school and office supplies as well as writing instruments. Widening its horizons worldwide with 15 subsidiaries and a comprehensive network of importers in more than 125 countries, the company made its foray in India in 2003 through a distributor agent. Strategic diversification, consistent innovation, close partnership with clients and complete industrial integration via seven manufacturing sites in France, Germany, China, Mexico and Argentina are the keys to the group’s success says Romain Lacroix, CEO, Maped India in an interview with Biz@India. Excerpts:

INTERVIEW

•WhatisthecurrentstatusofMapedinIndia?

Maped was introduced in India in 2003 by a distributor agent. Maped thought about setting up operations on their own for several years in a joint venture with our historical distributor agent, incorporating a subsidiary on August 8, 2011 eventually.

•Which sectors of your activity aredeployed in India? And could youpleaseprovidedetailsaboutturnover,manpower,etc?

Maped India Stationery Products is a commercial entity with main objectives to create brand awareness as far as French brand Maped is concerned, and develop sales at pan-India level. Today, Maped India accounts for more than 20 Indian employees and distributes products all across the country.

•Whatisthepotentialofthismarketand which sectors and geographieslookmostattractivetoyou?

Our history remains too little as a company to be able to talk about an evolution – will be happy to re-discuss the matter with you in a couple of years! Still, the efforts carried from day one by our team result in a higher growth than expected originally. India as a market has a strong potential, covering metro cities like Mumbai, Delhi, Bangalore, Chennai etc. Initially, our team aims at visiting B- and C-class cities where demand for differentiated products slowly starts.

•WhatisyourstrategyinIndia?Whoisyourcompetitionandwhatisyourcompetitiveadvantage?

Competitors are both local and international players and form together (with us) a tough environment to succeed in, due to the focus Indians always put on education, and considering the size (and potential) of India as a market! Maped products used to be sold by an Indian distributor agent from 2003 to 2011 – we initially offered this partner to

take part of a joint venture when Maped decided to set up their own subsidiary in Mumbai. The partner initially mentioned he was agreed to work, but let us down a couple of months after we came in India, leaving us on our own.

•AreyoustillopentoajointventurewithsomeIndianfirmsoryouprefertogoalone?

Our initial strategy was to settle in India hand in hand with our local distributor agent, considering the trust level built over more than eight years of joint activity. His reluctance to join eventually did leave no choice but to experience the market on our own. Our former partner’s decision to back out eventually turned out to be a major opportunity to reshuffle operations and proceed differently. We are getting more and more convinced that business can be done in India provided the team you have around you carries a sound knowledge of the India psyche. n

Romain Lacroix,CEO,MapedIndiaand

CountryDevelopment,MapedSAS

Mappingsuccessstory

a

BIZ@INDIA Special France-India 2013 53

Page 54: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

INTERVIEW

• WhatisthecurrentstatusofVeoliainIndia?

Veolia Water India is clearly the leader in the water sector in terms of full operation from source to customer, with a rather large segment going from demo-zones or towns with less that 1 lakh population till full city like Nagpur with close to 3 million inhabitants. In public transport, Veolia Transdev RATP India is the operator of Mumbai Metro Line 1 in partnership with Reliance Energy.

• WhichsectorsofyouractivityaredeployedinIndia?

Mainly water and transport. Water covers engineering, construction of water treatment plants and sewage

Special France-India 2013 Biz@india54

plants and of course, full operation of water utilities, both private and public. Transport is mainly metros but with an approach on the new buses systems, the Bus Rapid Transport System or BRTS.

• Veoliahasrecentlybaggedsomecontracts in India. What is thepotential of this market and whichsectors and geographies look mostattractivetoyou?

As said before, water and transport are for Veolia the main targets for time being. The potential is huge due to the starting point in terms of infrastructure and services and the size of the country, especially the cities. Our activities are mainly deployed in Delhi and

Expectations

A specialist of water engineering Patrick Rousseau has spent his entire career with Veolia, one of the world’slargest water and transport companies. From humble beginnings in the then Compagnie des Eaux, Rousseau has headed Veolia in various countries and has been heading Veolia in India since 2007 and has taken the company to new strengths in this period. In an interview with Biz@India, he outlines Veolia’spriorities and strategies in India.

model to client

Patrick Rousseau, ManagingDirector,VeoliaWaterIndia

Adapting Business

Page 55: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Interview

Biz@india Special France-India 2013 55

South India, especially Maharashtra, Karnataka and Tamil Nadu.

• WhatisyourstrategyinIndia?Whoisyourcompetitionandwhatisyourcompetitiveadvantage?

Our strategy is to adapt our business model to the expectations of the clients without trying to systematically replicate that we have implemented all over the world for almost 160 years. As the world leader we have a competitive advantage in terms of expertise and know-how, R&D capabilities and quality of resources. Nevertheless we have to prove that we can perform as well in India and of course to take in account the competition which is still quite diverse being a new sector of development.

• Are you open to a joint venturewithsomeIndianfirmsoryouprefertogoalone?

We are totally open to partnering with Indian firms and we have proved it in a recent past but always on a project basis. Due to the complexity of India and its geography, we do not believe in exclusive partnership.

• When did Veolia enter the Indianmarket and the key project sundertakensincethen?Veolia India was created 11 years ago with the aim to take market share in all aspects of water production, distribution and treatment in the Indian market. The company recently bagged an interesting contract in the central Indian city of Nagpur. Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) funding,

Nagpur Municipal Corporation and Orange City Water (a 50:50 joint venture company between Veolia Water India and Vishvaraj Environment Limited) have entered into a 25-year partnership to connect every citizen of the city to the water supply network. This contract follows a very successful

pilot demonstration project between Nagpur Municipal Corporation and Veolia Water India in the Dharampeth zone of the city, where 150,000 citizens (including 30,000 slum inhabitants) now enjoy access to safe water supply all day, everyday, delivered under pressure to their taps. n

Water is the main targeted sector for Veolia in India

Page 56: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

India and France have forged beneficial collaborative ties in the realm of nuclear and renewable energies over the past few decades. French Group Areva has been on the forefront in strengthening the ties since 2008 when it made its foray in India by entering into negotiations with the Nuclear Power Corporation of India for reactor and fuel supply which is almost at the completion stage, says Arthur de Montalembert, Chairman and Managing Director, Areva India, who has been heading Areva India since 2008, in an interview with Biz@India.

INTERVIEW

• Can you provide a brief updateaboutthepresenceofArevainIndia?When did your collaboration withIndia begin and what has been theevolutionsince?

France has always viewed India as a strategically on a number of bilateral and global issues – including nuclear and renewable energies. Soon upon the signing of the Indo-French Nuclear Cooperation Agreement in 2008, Areva entered into negotiations with the Nuclear Power Corporation of India (NPCIL) for reactor and fuel supply. We are proud to have been the first foreign supplier to deliver natural uranium to the existing fleet of reactors, which has helped them achieve even greater efficiency.

In renewable energies, we are in the process of building a solar thermal project for Reliance Power in Rajasthan, and for bioenergy, India has long been a hub for Areva’s activities in the South Asia region. As regards to our

supply chain, we are already working with companies like L&T, Remi Metals, Avasarala Technologies, etc. for supply of products and components to third countries.

• During the visit of PresidentSarkozy in 2010, an agreement hadbeen signed between Areva andNPCIL.Whathasbeen theprogresssince? Has the work begun on theJaitapurproject?

As you are aware, NPCIL has been in the process of completion of the land acquisition and has started preliminary works on site. On Areva front, our designs have been reviewed according to global requirements following the Fukushima accident in Japan, and we are happy to say that they stood the scrutiny of regulators and all possible stress tests in Europe and elsewhere. Most recently, the EPR reactor received the Generic Design Acceptance from the UK safety authority. We believe

that we have now completely satisfied our customer and hope to close commercial negotiations soon.

• Are you looking to broaden youragreementwithNPCIL/India tohavethepossibilityofsettingupplants inthirdcountries together? Is thereanelement of transfer of technologyinvolved?

We are now focusing on the supply of the first two EPR reactors and their fuel over 25 years of operation. Jaitapur site can accommodate up to six such reactors. The Indian content for the first two units will already be over 50 per cent and will continue to grow with subsequent units, as we build up our supply chain in India. We also consider the possibility of collaboration for fuel fabrication in this country, and for the acquisition and management of fuel assets around the globe. We are also watching India’s thorium programme with interest.

Arthur de Montalembert,ChairmanandManagingDirector,ArevaIndia

Special France-India 2013 BIZ@INDIA56

Anenergeticrelationship

Page 57: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

BIZ@INDIA Special France-India 2013 57

Areva’s project based in India

• Besides Jaitapur, are you lookingat other sites for new projects fornuclear power? Can you providedetails?

As of now, NPCIL is focusing on Jaitapur. We believe that there is much that can be done in future, but it can be explored later with our Indian customer.

• How is Areva renewables doingin India? What is the status of theRelianceorderforsolarpower?

As you are aware, Areva Solar has signed a deal with Reliance Power for the supply of 2 x 125MW solar thermal facility. Work is going on and commissioning of the first phase is expected this year. Areva is a leading provider of CSP technology in solar space and is hopeful of more

capacity addition plan in CSP though Government of India’s National Solar Mission in Phase II. We have developed a sizeable pool of trained resources in India and the supply chain base while executing the Reliance project. We want to continue with our localization efforts and expand if policy supports bigger role for CSP.

In bioenergy, we are actively addressing the South Asian as well as the South-East Asian markets from India. In fact, Areva has a technology specifically to burn complex biomass such as straw and empty fruit bunch (EFB) in the region. The bio unit is presently executing a 10MW project and is close to signing two more projects in this year. Regarding India, we firmly believe there is tremendous potential

for generation of electricity through biomass. However, there is a need to provide an emphasis for the sector in policy, addressing the concerns of the developers and farmers.

• Overall, how important is IndiaforAreva(acrossalldomains)today,in terms of manpower, units, sites,turnoverandwhatisthepotentialofthismarket,sayby2020?

India is of strategic importance to Areva. We believe that there is great potential both for nuclear and renewable energies, considering there is huge energy demand in India to keep pace with anticipated growth in the coming years and decades. We look forward to rewarding alliances with Indian industry in both areas. n

Interview

Page 58: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Ecology

Special France-India 2013 Biz@india58

From Rafale-Fighters toEco-Fighters Would India and France recognise trade and investment opportunities in social business that promotes sustainable development? Rajendra Shende, Chairman TERRE Policy Centre and former Director UNEP raises the question when Indo-French collaboration is already in the limelight due to multi-billion dollar Rafale deal.

India knows France as the land of wines, cheese, Eiffel tower and now of course the Rafale fighter jets. France knows India as the land of

Taj Mahal, Maharajas, Varanasi and now the first buyers of Rafale. The conversion of all current interests is at major intersection called Rafale - a sky-high dream of Indo-French trade collaboration.

Missing the forest for the trees? The answer is not far to seek, knowing

the root causes of the global financial and climate change crisis arising due to emphasis on short-term gains. Indeed, the short-term gains in the trade are important for France to tide overto certain extent - the financial crisis that is gripping Europe and France. Ensuring national security by acquiring defense capability is equally important for India. However, in this pursuit of immediate gains, emerging opportunities of environmental and

nature protection, sustainable and responsible investments, clean and renewable energy, sustainable tourism and social business are being squandered.

Alternative Energy: Game Changing Opportunity

Just a couple of years back, French Government made a strategic decision that was as visionary as the decision its government made way back in

Page 59: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Biz@india Special France-India 2013 59

1945, immediately after the end of World War II. It was the decision by the then President General de Gaulle to establish Commission of Atomic Energy (Commissariat a l’Energy Atomique – CEA). That decision helped France in strengthening not only its national security but later to advantageously transform its energy security from overdependence on fossil fuel to nuclear energy in late 1970s.

In 2009, came yet another transformative decision. The CEA was renamed as ‘Commissariat a l’Energy Atomique et aux Energies Alternative’ i.e. Commission of Atomic Energy and Alternative Energies. The abbreviation of the Commission did not change but the transformation in the vision was clear.

Many did not notice that transformational decision, but it was far reaching. The CEA now not only does research in nuclear technologies but also in low-carbon and renewable energy technologies. The dire need to create yet another safe and climate-friendly technologies had set the priority loud and clear.

Such transformational visions need to be the prime driver for the collaborative agenda between France and India. France and India may miss yet another massive opportunity to collaborate on the renewable energy through research and trade. India’s Atomic Energy Commission, established in 1948 immediately after India’s independence by then Prime Minister Jawaharlal Nehru, has proven potential to add to its portfolio ‘Alternative Energy Commission’ and collaborate with France to secure future.

Fostering Forest-Carbon trading opportunity

For nearly 20 years, I lived in the shadow of forests not far from Paris.

These urban forests are lungs of the city dwellers. One of them where I did my morning jogs and through which I cut almost every day to travel to Paris is called ‘Foret de Marly’ (Forest of Marly) spread on western side of Paris. It is an excellent example of how the forests and trees are jealously conserved by the French. In India, we have ‘ devarai’ which means the forest for the Gods. In France, the forests are like history books. They are preserved like temples, organized like library; rewritten several times and even new editions are launched like what happened during 1999 cyclone that uprooted the Marly forest.

The forest cover in France in terms of the percent of the total land is not much different from that of India –about 29 percent. Though it ranks only fourth in Europe, the quality of forest in France in terms of diversity and management is next to none. I also find the key challenges facing both countries in terms of forest governance, particularly under the

inevitable pressure of urbanization. Almost every region in France like every state in India, is still facing the migratory pressure to the cities. By 2050, the population in France will go beyond 80 per cent from – the current 75 per cent. In India, the present urban population of 30 per cent of the total, by 2050 it will be 60 per cent.

Such urban pressure requires careful and thoughtful management of existing forests around urban areas. France has that much needed experience. The management of the urban forests has economically and environmentally beneficial values. Clean air, clean water, healthy urban population has the roots in the urban forests. Enhanced employment and business in the urban forest management will pay of as has been shown by New York mayor Bloomberg in managing the New York’s water source. The deal between France and India to develop Indian forests, including forests around urban conglomerates, to avail future carbon

Ecology

France has enough experience to handle urban pressures to maintain existing forests

Page 60: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Ecology

Special France-India 2013 Biz@india60

trading is an opportunity that is at the doorstep.

Sustainable Tourism: French Story It was year 1951. A young French

Parliamentarian in his 40s, Emile Aubert came up with out-of-the-box concept of rural lodging for the tourism purposes. The French society post-World War II smelt prosperity after long years of resistance movement and recession. The centres of prosperity were mushrooming in the urban area. The rural regions of France were being deserted. The surroundings and the abandoned houses in rural area were in danger of neglect and therefore, a risk of ruins. It was strange site to see that the rural area continued to remain devastated and the hopes were emerging in urban area.

Aubert also saw that, in parallel, urban dwellers who had migrated and who had tasted rural life, were nostalgic and wanted to come back on weekends to the rural surroundings. Hence, Aubert came up with the project of ‘Gites de France’ literally meaning ‘French (rural) shelter’. He thought that if the houses, left vacant by people migrating to cities, are converted into ‘country lodges’ and if the tourists are provided with local cuisine specialties, the urban tourists who had not tasted that life will get attracted and the rural folks will get employment and the business. ‘Gites de France’ soon became a movement of development of tourist accommodations at rural homes. It

started with the region of Basses-Alpes in the scenic background of mountains and hills, from where the Parliamentarian was elected.

Today, approximately 47,000 rural lodges exist throughout the France with 30,000 having bed and breakfast facilities. The rural business (direct and indirect) is about Rs 8.4 billion per year. A 20 per cent of the clientele is

from other countries. France became first European country to start rural lodging and boarding and it became so popular that many other countries followed the scheme set by the Parliamentarian Aubert.

More than just the figures of improvement of business in rural areas in the terms of the income, rural tourism also focuses on participating in a rural lifestyle. It can be a variant of eco-tourism, i.e., tourism undertaken with care and respect for environment and ensuring that degradation of nature is avoided. Quality of life in France, irrespective of present financial crises, is very high. I would venture to say that

one of the contributing factors for such quality is the recognition by the French society that forests and nature provide the basic capital for the development and it is important to use it sustainably.

Building Indian story with French collaboration

When Aubert initiated the idea in 1951; India had just become the largest Republic in the world after a prolonged struggle for independence. Eighty four per cent of the population of half a billion at that time lived in rural India. There were only five Indian cities with a population greater than one million and only 41 cities greater than 0.1 million population. Much of India effectively lived in - half a million villages. The bond between nature and rural population was strong. Most of the rural population got water from near by rivers and streams. They even worshipped the rivers and its water almost every day.

Come 2011-12: Sixty eight per cent of the population i.e.more than 800 million Indians, live in rural area in 6.4 million villages. There are now three cities with population of more than 10 million and 53 cities with population of more than one million. And the huge masses of young people there in rural area – more than 80 per cent of the new-borns in India take birth in rural area - are struggling to make a decent living. They finally land in cities abandoning their rural homes, heritage, nature and environment that supported their fathers, grandfathers

France has scripted a success story for sustainable tourism by becoming first European country to start rural lodging and boarding

France became the first European country to

start rural lodging and boarding and it became

so popular that many other countries followed

the scheme set by the Parliamentarian Aubert.

Page 61: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Ecology

Biz@india Special France-India 2013 61

and their grandfathers who lived with the nature for centuries.

Today in India, half of the population is under 25 and 65 per cent are below 35.Here lies the timely opportunity for young farmers and workers in rural areas. Going ‘back to nature’ should be the mantra. That clearly does not mean that every one has to rush to forest. We, however, need nature’s capital and young human resources and their energy to produce, process and market the food. We also need youth to play their part – as entrepreneurs, service providers and wage earners – in the development and economic growth of their communities, in rural areas.

France with its expertise in agriculture, rural tourism, food processing and retailing has collaborative opportunity in India to make a deal that benefits both countries.

Twinning of the natural heritage sitesIn July 2012, UNESCO inscribed

the Western Ghats of India as World Natural Heritage. I see such inscription as unique opportunity for France and India to collaborate for building the infrastructure for the sustainable tourism.

Older than the Himalayas, the mountain chain of the Western Ghats represents geomorphic features of immense importance with outstanding universal value. Moderating the tropical climate of the region, the site presents

one of the best examples of the monsoon system on the planet. About 300 million people from the states of Maharashtra, Karnataka, Kerala and Tamil Nadu are dependent on the nature’s diverse capital of Western Ghats. However, the local youth from Western Ghats’ rural area migrate to the cities thereby abandoning their homes and nature. That results in neglect of natural capital and tourism opportunities.

If the heritage site’s management plan is based on social business, including the sustainable tourism and the schemes like ‘Gites de France’ to benefit the local communities, the World Heritage inscription could be leveraged for strengthening the rural infrastructure.

Like the twin city programme that exists mainly among developed countries and now spreading in the developing countries, France and India can benefit from a deal on ‘twin natural heritage sites’ programme. France has five World Natural Heritage sites inscribed by UNESCO, starting with the first one in 1983. India has six such sites; the first one was inscribed in 1985. Such a deal will not only promote the bio-diversity but also foster the livelihood and sustainable development of the local communities. France has very valuable experience in managing these sites. India’s experience has been not been very happy. Its one of the sites was in the

danger list and took considerable time and efforts to bring it back to the heritage list. There is a hidden opportunity of incentive-driven tourism for French tourists and development and management of the national parks, heritage sites and protected area.

From sky-dreams to ground-realitiesIndia and France have missed vital

opportunities in the past that could have benefitted them had the collaborative forces been forged. France missed the massive IT train when it became cozy and inward looking about its invention of Minitel. The opportunity to collaborate with Indian IT potential and France’s innovation to develop the trade regime unfortunately passed by.

India, too, wasted the glorious opportunity of rendering the country as a leading magnet for world-tourists with its amazing and incredible diverse history, monuments, natural marvels, spiritual practices and age-old authoritative principles of tourism i.e. ‘ Atithi Devo Bhava’ (Guest is God). The opportunity for India to collaborate with France in hospitality and tourism management very early in the decade has also been missed.

I hope that newly found indulgence in the sky-high dreams, India and France do not forget the immense ground level opportunities that are flourishing around. Can the deal in Rafale fighters lead to another deal in Eco-fighters?

Western Ghats of India: An opportunity for France and India to collaborate for sustainable tourism

n

Page 62: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

ADVERTORIAL

Special France-India 2013 BIZ@INDIA62

For a state that was not long ago considered to be front runner in the list of beemaru states of the country, where nothing moved,

and the industrial climate was vitiated by failing law and order, the turnaround in ground realities in the last one year in the state of Uttar Pradesh, India’s most populous state, has both been pleasant and stunning.

In the last 10 months of the Akhilesh Yadav regime, the state has not only climbed a few notches in the public perception of where things are headed to in terms of their prosperity but the state has earned high praise from the industry captains who are now considering the state with a 210 million population, as a safe bet for investments.

It was hence not without reason that deputy prime ministers, ambassadors, business delegates and corporate honchos from several countries participated in the recently held, three day CII Partnership Summit 2013 at Agra, the land of Taj.

With every session the out-come and the strong ratings for the young Chief Minister and his team of officials went up. Industry captains, ranging from Adi Godrej, KK Modi to the Jaypee group founder Jai Prakash Gaur praised Mr Yadav for “changing the industrial and investment environment” in the state.

One has to admit that though the state always had immense potential but the open arm welcome and the

UP opens up to the worldUttar Pradesh

Changing Investment Climate

Melinda Gates meeting Akhilesh Yadav, Hon’ble Chief Minister of Uttar Pradesh

Uttar Pradesh

Page 63: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Advertorial

Special France-India 2013 BIZ@INDIA 63

change of mindset amongst the state bureaucracy, led and guided by the Chief Mnister, has begun to make the much desired impact and long delayed change. And it is not without reason. Over a dozen new industrial policies, varying from the Food Processing Industrial policy, Solar Power Policy, Information Technology (IT) policy and many others have recently been unveiled .

Uttar Pradesh is a major producer of food grains, wheat, rice, pulses and sugar cane in the country and accounts for 20 per cent of India’s food grains produce, 34 per cent of wheat production and 35 per cent of the country’s sugar cane production. Other than this, the state ranks first in potato, livestock (excluding cow) and milk production in the country, second in vegetable production and accounts for 19.41 per cent of fruits in India. With such major achievements under its belt, the state government has rolled out a food processing policy with a bevy of incentives.

These include 100 per cent exemption on purchase, lease or acquisition of land by new food processing industrial units, cent per cent exemption from the Mandi fees, interest subsidy, capital

investment subsidy, assistance for global competitiveness, quality and standardization. The UP government is also extending assistance for market development and has implemented warehouse receipt system for availing loan facility on the issued receipts by the accredited warehouse under the Warehouse Act.

With a vast source of raw material - UP dominates India’s agricultural production and has four Agri Export Zones (AEZs) for potatoes, mangoes, vegetables and Basmati rice, 2,101 agriculture marketing hubs are being set up at a cost of Rs 3.54 billion for grain storage, farmer service centers,

banks and primary processing units. With a population over 210 million, UP also offers the largest market for food products consumption.

Chief Minister Akhilesh Yadav believes that the state has a promising potential for power generation based on solar energy as abundant sun shine is available throughout the year, which can be harnessed for electricity generation. Considering the need of a policy framework to promote solar power projects, the Uttar Pradesh government has announced the state’s solar energy policy. Under this policy, solar plants of a total capacity of 500 MW are targeted to be set up by 2017.

The solar energy policy, officials point out, seeks to provide a single window clearance for speedy approval at different levels of solar energy power projects. The policy also advocates strengthening of the power evacuation infrastructure and its timely availability to the project developer. This form of energy is largely going to be clean energy as the government has restricted the use of fossil fuel, including coal, gas, lignite, naphtha, wood, etc.

Realising the immense potential the state offers for development of

UP dominates India’s agricultural production and has four Agri Export Zones

for potatoes, mangoes, vegetables and Basmati rice, 2,101 agriculture marketing hubs are being set up at a cost of Rs 3.54 billion for

grain storage, farmer service centers, banks and primary

processing units.

Page 64: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Advertorial

Special France-India 2013 BIZ@INDIA64

the industry in general and information technology, software, electronics hardware and BPO in particular, the government has unveiled an IT policy that aims to tap this potential and incentivize the sector. Hence, the state government has decided that establishment of new industries and expansion of existing units, both be encouraged. The IT policy document articulates the intent of the state government and is an enunciation of a vision - a vision of growth and progress in all sectors, which will be catalyzed by the fast-paced development of electronics and IT.

Under the IT Policy, a detailed implementation strategy encom-passing economic transformation, creating a conducive environment for business, promoting public private partnership (PPP), single window clearance, people engagement and empowerment, ensuring affordable and seamless e-services, content and applications, digitization of government information, has been set rolling. The vision behind IT police, mandarins in the state government say, is to ensure economic transformation, engage people and empower them, innovate

for better results through infrast-ructure development, developing a skilled workforce, knowledgeable community and bridging the digital divide. As a result of this concerted effort, the policy hopes to use IT as an engine of growth for UP, recognise UP as the most preferred IT destination in the country and to enhance the quality of life for UP residents.

With the winds of change and progress sweeping the state, how can the world be far off! No wonder that in the past few months a host of foreign delegations have called on the UP Chief Minister Akhilesh Yadav and his officials to explore the possibility of doing business with the state. Among the top world leaders who have visited the state include German Ambassador Michael Steiner, Saudi Ambassador Dr Saud Mohammad Al Sati, Melinda Gates, Nepalese President Dr Ram Baran Yadav, Canadian Senator Asha Seth, Ron Sommers (Chairman of the US India Business Council) British High Commissioner James Bevan, US Ambassador Nancy Powell and the Australian High Commissioner Peter Verghese.

While the US delegation has

shown keen interest in many sectors, including food processing, IT and clean energy, the Australians are keen on energy, solar energy, agriculture, agriculture research, food processing, coal, science and technology and education. Ron Sommers, the Chairman of the USIBC was so excited about the investment prospects in Uttar Pradesh that at the CII Global Summit 2013 in Agra he announced that the “Americans were coming to UP”.

Industry captains like KK Modi have also openly aired their appreciation for the strides in the industrial climate that have taken place under the present day government in Uttar Pradesh. Modi recently said that the state was great, is great and will always be great and underlined that the people of the state had backed Akhilesh Yadav with a mandate impressed by his zeal to change the state. UP, most corporate world leaders point out, has taken formative but decisive and far reaching steps to improve infrastructure. At the CII meet at Agra held recently, industry captains and corporate honchos unequi-vocally praised the first steps taken

Chief Minister of UP unveiling major policies at the Global Partnership Summit 2013 at Agra

Page 65: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Advertorial

Special France India 2013 BIZ@INDIA 37

by the Uttar Pradesh government in improving the industrial environment in the state and underlined that the need of the hour was to initiate some far reaching steps to improve the infrastructure across the state. Sidhartha Das from Ernst & Young says that the Government of Uttar Pradesh has realised that to attract investments the infrastructure in the state needed to be mopped up and the state has already achieved many milestones so far. E&Y adds that Uttar Pradesh has ambitious plan to achieve robust growth in all infrastructure areas.

Institutional architecture has been built in road & transport sector and international airports at Agra & Kushinagar have already been planned to be built on PPP Model. The Government, it was informed was also planning NIMZs in Poorvanchal, Bundelkhand and Madhyanchal in the Industrial Infrastructure Development Sector.

Sector Specific Industrial Policies are being developed. Government is encouraging development of Industrial estates in private sector. Schemes proposed in times to come include exemption from stamp duty to new industrial units on purchase or lease of Government /Private land, investment promotion schemes, capital interest

subsidy scheme for eastern UP, Central UP and Bundelkhand Region, Industrial Quality Development Subsidy scheme at five per cent for five years, Infrastructural Interest subsidy scheme at five per cent for five years.

As part of the special incentives to mega projects, investment worth billions are planned in future. State

highways project of 2,500 km is proposed for which concession agreement has been signed for four roads of 463 km costing Rs 38.67 billion. 462 km. of state highways are under implementation. Feasibility study has been completed for 11 roads across 977 km, involving project cost of Rs 71.29 billion, officers informed. n

Saudi Arabian Ambassador to India meeting the Chief Minister of Uttar Pradesh Akhilesh Yadav

Page 66: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Business

In today’s globalised world, having cross cultural skills and awareness is an asset that most employers around the world eagerly scout for.

CEOs are increasingly hiring people of various nationalities in order to enrich their company’s cultural diversity, permitting them to strike deals in

Special France-India 2013 BIZ@INDIA66

new markets. Gone are the days when an American company would only work with Americans across the world or when Chinese companies hired only the Chinese. The winds of change have arrived in India, too. And Indian managers have begun hiring foreigners not only for their activities

or businesses overseas, but also within India.

This development has been boosted by not just a more global business world but also an acute shortage of skilled workforce in India, at least in certain highly skilled jobs. No wonder, thousands of

Traditionally, the movement of human resources, skilled or otherwise, has been in one direction. Outbound from India. However, the global economic crisis, the resurgence of India and a skills deficit in India in some sectors is making Indian employers and foreign employees hook up in India. Government’s recent decision to remove the cap on number of foreigners a company can hire has boosted the number of foreigners coming to India. Jasleen Kaur met with some French nationals to discover their experiences of working in India.

India beckons French skills

Page 67: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Business

Special France-India 2013 BIZ@INDIA 67

foreigners are now cashing in on this opportunity, which has come just at the time when the economies in their own countries have slowed down, severely restricting the jobs available.

For many, working in India presents itself as a once in a lifetime opportunity. Today, India has not only become one of the most dynamic economics in the world, but the emergence of globalization here has played an important role in the generation of employment. Since the economic liberalization policies of the 1990s, the employment scenario in the country has significantly improved and called for the requirement of foreign knowledge and skills. More and more people have worked in different nations around the world, but India is still an emerging country

and therefore coming to India means to lead the way. Hence, Max Mueller has rightly said: “If I were asked under what sky the human mind has most fully developed some of its choicest gifts, has most deeply pondered on the greatest problems of life, and has found solutions, I should point out to India”.

According to a report released by the industry body Associated Chambers of Commerce and Industry (ASSOCHAM), the Indian economy will create 87.37 million new jobs by 2015. The most significant growth, according to ASSOCHAM’s survey, will come from the manufacturing sector, which will add 32 per cent (27.88 million) of the new jobs. Trade will be next with 24.24 million jobs, following construction with 15.13

million. Tourism-related employment, information technology (IT) and IT-enabled services (ITeS), and financial services will also grow. The weak spot is agriculture, which will remain stagnant.

These job opportunities are not only for Indians but also for foreigners. India is increasingly emerging as a destination of choice for many international professionals who are coming not only for a short stint of a few months, but rather to pursue a long-term career. In 2010, when the Indian government removed the ceiling on number of foreigners a company can hire, it opened up the job market immensely.

India was already witnessing middle and senior level managers making it to India but now even young professionals have started to find their calling in India. Though initially, many Europeans and Americans come for internship or take up training; they stay on and work in India.

However, it has not been very easy for young French nationals to connect with the companies in India and similarly companies in India scouting for young French professionals find it difficult to trace the suitable candidates. Hence, to trigger the matchmaking between the French job seekers and the potential employers, an Employment Service was created at the Indo-French Chamber of Commerce and Industry

India is emerging as a destination of choice for many foreign professionals who are

coming not only for a short period, but rather to pursue a long-term career. In 2010,

when the Indian government removed the ceiling on number

of foreigners a company can hire, it opened up the job market

immensely.

Page 68: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Business

Special France-India 2013 BIZ@INDIA68

(IFCCI) in September 2011 with the signature of an agreement between the Consulate General of France in Mumbai and IFCCI with the support of the French Ministry of Foreign Affairs.

“In 2012, I accompanied my husband to Mumbai who was assigned to work in a French company for two years. Within a few months of my arrival in India, I got a job in an Indian financial services firm and this rapid placement was thanks to the Employment Service at IFCCI.,” says Cecilia Boukraa working as a financial analyst in Mumbai.

The service started effectively in January 2012 with one person being fully dedicated to ensure the matchmaking between the 127 CVs of French Nationals received in 2012 wanting to work in India and the 26 job offers from French and Indian companies in India. In addition to this, companies in India dealing with Francophone countries across the world consults IFCCI’s database of CVs of French speaking Indians/Indians who have studied in France.

“We provide financial research and newsletter services to European banks in various languages including French. It is challenging to locate, recruit and select French nationals with the right kind of experience who are either already in India or looking

to relocate here. The Employment service provided by the Indo French Chamber of Commerce and Industry is able to bridge this gap effectively by referring French Nationals who are seeking opportunities in India. They also do the initial screening so as to reduce our time and effort to locate the right candidate. We have been very pleased with this service,” says

Ajay Gupta, Director- Chief Operating Officer of (name the company).

“During the first year of the employment service, 16 French candidates were placed in India mostly in SMEs and in sectors like trade, finance, engineering, translations and higher targets have been set for 2013,” says Laura Prasad, Secretary General of IFCCI.

Apart from the employment service, the VIE (Volunteership for

International Experience) programme which is managed by UbiFrance –the French Agency for International Business Development - allows French companies to send 18-28 year old French/European graduates on a work assignment abroad, for a period comprising between 6 to 12 months. In India, around two-thirds of these interns undertake commercial or technical missions and are currently working in one of the following fields of activities: ICTs, transportation-logistics, industrial equipment, energy, and construction-infrastructures.

With these kinds of initiatives, the number of French professionals in the Indian corporate sector has been mounting. Mathieu Jouve-Villard, Director, Wedge Consulting India, who has been living in India for the past 19 years, said, “It has been wonderful and at the same time, challenging experience like everywhere. India is a country which is full of opportunities in every sector.”

“India has a lot of opportunities for the French. But unfortunately, it becomes sometimes difficult for a French company to come India because it expects something easy to understand, something similar to what they already know, it doesn’t take help from people who already know the environment either local

To trigger the matchmaking

between the French job seekers and the

potential employers, an Employment Service

was created at the Indo-French Chamber of Commerce and Industry

in September 2011

Page 69: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Business

Special France-India 2013 BIZ@INDIA 37

people or who are experienced in this environment and it arrives with some strategies which are not fit for the country and eventually it loses money. However, French companies which I have seen arriving in India, have come up with defined strategy, took firm decisions while conducting market surveys and they have been very successful. There are many opportunities and more French companies are likely to come India,” he added.

Antoine Pfister, Country Head India, Salveo who has been working in India since 2006, believes that the first and foremost challenge is to understand the Indian work culture, how things move here, dealing with clients, the tax structure which is quite different from France. ‘There are vast opportunities in India to work as many French companies are making their foray and they need managers to work according to their culture. So, here is immense scope.”

Many French have also found jobs in Indian companies and some others have set up their own business. Laurent-Charles Samandari came to India six years ago to work as a marketing and strategy consultant with an Indian company in Gurgaon. His parents and 97-year-old grandmother joined him six months later. His sister and brother-in-law have been living in India since 2005. Two years ago, Samandari set up a French bakery under the brand name L’Opera in Noida with a state-of-the-

art manufacturing facility. “When I was working in Gurgaon, I desperately looked for a place where I could find authentic French pastries and breads, but found none. So, finally, I decided to fill the gap. Ours is an authentic French bakery. We source most ingredients from France. Except for frequent power-cuts that affect the baking process, it has been great experience living and doing business in India. Even my grandmother loves living in Delhi. We hardly miss Paris as of now there is a lot of Paris in Delhi,” says Samandari.

Work visa relaxationEarlier Indian companies had to

limit their foreign recruitments to one per cent of their total workforce and pay them annual salaries of $25,000. NGOs were not allowed to hire foreigners; those who were keen to work NGOs in India had to come on tourist visa to work as volunteers for a limited period. In 2010, India relaxed work visas rules for foreigners by removing the ceiling on the number of foreigners a company can hire as well as the minimum stipulated salary.

Though the new rules were designed to favor skilled workers and give preference to Indian origin people, they have allowed a large number of foreigners, too, to find work in India. Also, those working with NGOs are now treated at par with other expatriates who can come here for skilled and highly specialized jobs.

Staying here, no problem! Accommodation is not a problem

anymore, which has been one of the major drivers for French nationals to come India and work here. Those who intend to stay in India for less than a year have the option of budget hotels, paying guest and serviced apartments. Service apartments are cheaper than a star hotel, but provide all conveniences of 24/7 service, coffee shops, same day laundry, gym, travel services, Wi-Fi internet, multi-cuisine restaurants, proximity to business districts, night-life spots, culture, shopping malls, doctor on call and business center. Serviced apartments in Bangalore, Chennai, Hyderabad, and other major cities are the preferred choice for those who seek transit accommodation either for short-term or extended stay is because living at a serviced apartment feels much like living at home.

The outlookThe job opportunities in 2013 for

French nationals depend upon the economic conditions and political scenario in India. France is the eighth largest foreign investor in India. Today, more than 750 French subsidiaries covering a broad spectrum of sectors are established in India and employ approximately 240,000 people. The year 2013 has already started with an extremely positive note with the placement of six French workers in India by IFCCI in January alone. n

69

Accommodation is not a problem which has been one of the major drivers for French nationals to

come India and work here. Those who intend to stay

in India for less than a year have the option of budget hotels, paying guest and

serviced apartments.

Page 70: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP
Page 71: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP
Page 72: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

ADVERTORIAL

Strategically located on the south-eastern coast of India and considered as gateway to East and South East Asia,

Andhra Pradesh is fourth largest state in the country spread over an area of 276,754 sq km and is fifth largest state by population.

In terms of industrial development, after achieving a decent growth rate of

Special France-India 2013 BIZ@INDIA72

9.22 % during the 11th Plan, Andhra Pradesh has set an ambitious target of 12.5 % for the 12th Five Year Plan period of 2012-13 to 2016-17. The world bank in its report “Doing Business in India – 2009” has ranked Hyderabad as second best Metro city in India and CII in its survey 2011 also rated Andhra Pradesh as the best performing State in the manufacturing sector among the Southern States. It is among the top three States in attracting investments from domestic and foreign investors, according to ASSOCHAM reports.

Andhra Pradesh has bountiful natural resources (coal, limestone, bauxite, and a number of minor minerals), fertile land, water, fertile river basins and extensive canal system, and conducive agro-climatic conditions. The State is agriculturally prosperous. It is known as the “Rice

Bowl of India”. Powered by its robust economic growth over the decade, Andhra Pradesh has acquired national prominence and international reco-gnition. A state that was considered as an agrarian state, a few decades back, has transformed and emerged into a veritable hub of knowledge and a vibrant and fast growing industrial powerhouse.

An ideal investment destination

Today, Andhra Pradesh is considered as a competitive and attractive investment destination for foreign and domestic investments. Goldman Sachs remarked, “Andhra Pradesh, the most attractive state we visited, has adopted an innovative approach to attract foreign investments and benefits from a stable, strong and reformist government”.

Hyderabad, which accounts for

Strategic Investment DestinationAndhra Pradesh:

Andhra Pradesh

Andhra Pradesh

Page 73: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Advertorial

BIZ@INDIA Special France-India 2013 73

one-third of India’s total bulk drug production, is the bulk drug capital of the country. A large number of bulk drug units are located in and around Hyderabad with good infrastructure and trained manpower.

The presence of Defense Research and Development Laboratories has laid the foundation for the development of precision machine tools, special purpose machines and has led to development of host of small and medium Industries catering to the needs of Atomic Energy, Defense, and Space, etc. Andhra Pradesh earned the distinction that many of the components and sub-assemblies used in PSLV Chandrayan, atomic submarine are made in Andhra Pradesh. The state is thus well known for its Engineering Industry and earned a pride of place in the industrial map of India.

Andhra Pradesh is the leader in cement production with an installed capacity of 42 Million TPA, with large deposits of the limestone and coal in the state. The cement production in the next 3-4 years is going to be increased by 50 per cent as many more cement plants are coming up in

the state. The State stands at the apex in the

country in paper production, with an existing capacity of 0.6 Million TPA. Another 0.5 Million tons are going to be added in the next three years. It is an important producer of steel, with another Rs 400 billion of investment under active implementation. This will increase the steel production by another 10 million tonnes. A wide variety of building materials, like Granites, Slate, Marbles is found in the state.Textiles are yet another area, which is growing rapidly in the state. The state of Andhra Pradesh has well developed spinning and processing sector in the textile industry. In fact, the state is the third leading producer of cotton in the country. Major investments are taking place in this sector and soon AP will emerge as the textile hub of the country.

The state is home to 4,416 large industries and 182,945 Micro, Small and Medium Enterprises (MSMEs) enterprises with an investment of Rs 1,313 billion creating employment to three million people.

Government of Andhra Pradesh announced a new Industrial Investment Promotion Policy 2010-15, which is rated best policy in the country. Under the policy, the various incentives include:• 100% reimbursement of Stamp

duty and transfer duty paid by the industry on purchase of land meant for industrial use and also mortgages and hypothecations

• 25% rebate in land cost limited to Rs 1 million in Industrial Estates/ Industrial Parks

• 25% Land conversion charges for industrial use limited to Rs 1 million for MSME’s.

Andhra Pradesh was considered as an agrarian

state, a few decades back, has transformed and emerged into a veritable hub of knowledge

and a vibrant and fast growing industrial powerhouse.

Industry Current Size in AP in Rs. Cr Growth Rate(CAGR) % Projected Size Of Industry in 2015 in Rs. Crs

Mines and Minerals 7,800 11.50% 21,000

Drugs and Pharma 17,400 13.50% 55,000

Textiles 10,750 16.00% 41,000

Paper 2,400 8% 4,700

Agro and Food Processing 9,300 10% 22,300

Biotechnology 560 24% 4,100

GROWTH OF KEY INDUSTRIAL SECTORS

Sri Nallari Kiran Kumar Reddy, Hon’ble Chief Minister of Andhra Pradesh

Page 74: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Advertorial

Special France-India 2013 BIZ@INDIA74

• Fixed power cost reimbursement @ Rs.0.75 per unit for 5 years

• 15% investment subsidy on fixed capital investment subject to a maximum of Rs 2 million for MSEs

• Reimbursement of 100%, 50% and 25% VAT/CST for a period of 5 years for Micro, Small and Medium & Large Industries respectively

• Interest subsidy under Pavala Vaddi Scheme on the term loan to New Micro and Small Enterprises for a period of 5 years

• 50% Reimbursement of cost involved in skill upgradation and training the local manpower limited to Rs 2,000 per person

• 50% subsidy on the expenses incurred for quality certification/ patent registration limited to Rs 0.2 million for MSE’s.

• 25% subsidy on specific cleaner production measures limited to Rs 0.5 million.Andhra Pradesh received investment

proposals worth of Rs 6,500 billion during the Partnership Summit 2012 across various sectors. Some of the promising areas for mutual collaboration, as identified by the state, include small & medium enterprises, manufacturing, agri-business and food-processing, IT, pharma-ceuticals, environment, aeronautics, and, life sciences.

IT - An opportunity in APGovernment of Andhra Pradesh

aspires to transform the state into a knowledge society and make available the benefits of Information Technology (IT) to the last mile of the state and to all citizens, especially those in rural areas through eGovernance programmes such as “MeeSeva”.

Launched in Chittoor District on November 4, 2011 by Chief Minister, ‘Mee seva’, easier, faster is an online transparent facility to bring public services closer to all the citizens. It is the vision to see that people avail the government services, benefits of the schemes and programs transparently and seamlessly without any hassles and harassment. It commemorated completion of 10 million transactions on January 11, 2013.

As on February 9, 2013, total number of 1.14 billion requests have been received in the state, out of which 360 million requests were delivered across the counter (Category –A) and 780 million requests are delivered within the citizen charter time limits (Category –B). By March 2013, 100 services would be available to the

And

hra

Prad

esh

-Gro

wth

of I

T &

ITES

Sec

tor PARTICULARS 1998 2012 INCREASE

No. of IT companies 194 1259 6.5 times

Employment 12,000 3,18,624 23 times

Exports ($ million) 56.8 9700 110 times

Built-up Space (sft) 200,000 50 million 200 times

12 26.856.8114.8211.8401.4581.4733.610051654

2504.2

3716.4

5224.4

62007000

8500

9700

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

95-96

96-97

97-98

98-99

99-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

In Million US$

Source: STPI Hyderabad

IT Exports in AP, 1995-96 to 2010-12

Page 75: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Advertorial

BIZ@INDIA Special France-India 2013 75

citizens through “Mee-Seva”, pertaining to various departments. Every request made by citizens is being closely monitored & tracked so that it is delivered within the citizen charter limits.

Andhra Pradesh has emerged as a state that provides the right climate for the growth of IT business and is now one of the most preferred destinations in the country. The state is home for Indian IT majors such as TCS, Infosys, Wipro, HCL, Mahindra Satyam, Cognizant, Patni, Tech Mahindra, Sonata, Infotech, and others. Andhra Pradesh is also home for MNC IT giants and Fortune 500 companies like Microsoft, Google, IBM, Oracle, DELL, Motorola, Deloitte, Convergys, UBS, Bank of America, HSBC, Honeywell, Siemens, JP Morgan, UHG and so on.

For the year 2011-2012, while all India growth rate is at 15.7 per cent, the AP growth rate is recorded at 16 per cent. The state of Andhra Pradesh contributes to 12.4 per cent of national IT exports and ranks fourth in IT performance in the country. IT sector contribute to about 39 per cent of total exports from all sectors in the State. During the year 2011-2012, IT sector in Andhra Pradesh reported a total (domestic and export) turnover of Rs 532.46 billion, besides providing IT employment as 318,624 as of now.

Andhra Pradesh is the most preferred destination for investment in ITand ITES sector, due to following reasons:• Strategically located – North of

South and South of North of the country.

• Excellent Air, Rail & Road network – More than 30 flights, 160 trains and nearly 2000 buses connect Hyderabad everyday with other

parts of India.• Direct connectivity to London,

Bangkok, Frankfurt, Singapore, Kaula Lampur and the Middle East.

• Has optic fibre linked telephone exchanges with telephone density of 11:8 per 100 people.

• Multi-cultural social fabric.• Low cost living with excellent civic

amenities. • Lowest crime rate – 193 per

100,000 population.In order to further promote and

augment the growth of IT sector in the state, Government of Andhra Pradesh is implementing the following initiatives:• Investor friendly ICT Policy 2010-

2015 - To achieve the objective of making Andhra Pradesh the most preferred IT destination and for enhancing the capacity for growth of IT sector in the state. ICT Policy 2010-2015 offers best incentives, facilitation and thrust for the growth of start-ups, small & medium enterprises and sun-rise areas like engineering services, product/R&D companies, animation, gaming, etc.

• Electronic Hardware Policy 2012-2017: Recognising the importance of growth of Electronic Hardware Industry, Andhra Pradesh is the first state to put in place the Electronic Hardware Policy 2012-2017 effective from July 24, 2012.

• Development of Information Technology Investment Region (ITIR) in an area of 202 sq km in and around Hyderabad and Ranga Reddy Districts: ITIR is envisaged as a self-contained integrated knowledge Cluster dedicated to establishment and growth of IT, Information Technology Enabled Services (ITES) and Electronic

Hardware Manufacturing (EHM) units. Government of AP has taken a lead initiative to identify and develop an ITIR in an area of about 202 sq km in certain areas of Hyderabad and Ranga Reddy districts.

• Creation of Electronic Hardware Manufacturing Clusters (EHMCs): In order to further augment the growth of IT sector as a prime growth engine for the socio economic development of the state and in order to provide state-of-the-art IT/Electronic Hardware physical infrastructure, the state government is creating three EHMCs in Hyderabad and Visakhapatnam regions.

• Construction of IT Incubation Towers in Tier-II locations: To provide affordable office space to the small and medium enterprises and to promote the percolation of IT in Tier-II locations of the state, five incubation centres are planned for construction in Visakhapatnam, Tirupati, Kakinada, Warangal and Karimnagar. These incubation centres will have all the basic infrastructure facilities such as ready to occupy office space, telecom facilities, and common amenities to enable IT companies to come and set up their operations in plug & play and walk to work kind of office environment.

• Special thrust for animation and gaming sector: Recognising Animation & Gaming, Visual/Special Effects and Digital Entertainment as sunrise industry, to encourage the animation and gaming sector in Andhra Pradesh, government has contemplated to develop Gaming and Animation Park in an area of 30 acres in Raidurg, RR District. n

Chief Minister Addressing Intl Delegates at Partnership Summit, Jan12-13, 2012 Hyderabad Bio Diversity, Oct 1-19, 2012

Page 76: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Tourism

Special France-India 2013 BIZ@INDIA76

Outbound travel is a rapidly growing sector in the Indian tourism industry. Currently, 40 million Indians are in

possession of a passport and this number is only expected to increase in the near future. Statistics indicate that there were close to 14 million Indian tourists who travelled overseas in 2012. From all destinations visited, Europe is a popular destination on the wish list of almost every Indian traveller wanting a holiday abroad. This is validated by the fact that Europe welcomes close to

two million Indian travellers (business and leisure). Out of this number, France received an estimate of 315,000 Indian visitors. Although France is the most visited country in the world, with more than 80 million tourists visiting its shores annually, it would certainly like to augment its share of Indian arrivals.

An existing trend for visitors coming to Europe has always been to visit France as part of a multi country journey. However this trend has changed in the recent years. France

French art de vivre callsIndian travellers

Catherine Oden, Director, Atout France India

As the most visited country in the world, it is normal for France to have a very large share in the Indian outbound tourism market as well. However, that was not the case as most Indians preferred to travel to other European destinations. Finally, it took a different strategy and positioning, employed by Catherine Oden, Director of Atout France India, who came to India with 18 years’ of experience in Asia. Oden’s association with India dates back to 2002 when she first launched the French tourism agency in India. Now a decade and many more tourists later, she outlines travel trends for France from India, challenges in the Indian market and how she addresses them.

Page 77: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Tourism

BIZ@INDIA Special France-India 2013 77

is gaining popularity as a mono destination with an increasing number of clientele wanting to spend more time in the country discovering its regions.

Why FranceFrance is often perceived as a

unique destination and is associated with luxury, wine, gastronomy, lifestyle and culture. Paris has always been a popular destination for the Indian visitor and its luxury element entices the high end traveller as well. In recent years, other destinations such as the French Riviera have also been very popular with Indian visitors. Mountains have always held a special appeal for Indians, which is why the Rhone Alpes region, home to snow capped peaks, find place on a French itinerary. Popular destinations in this region include Chamonix, Courchevel, Lyon and Annecy. Of late, there has been a growing increase in the wine growing regions of Bordeaux-Aquitaine, Dijon-Burgundy, Champagne, sea side resorts of Nice, Cannes, St Tropez, Biarritz in Aquitaine, Deauville in Normandy. There is also a growing interest for the perched hilltop villages and lavender fields of Provence.

When do Indians visit France?

Typically, travel to France is at its peak during the months of April-June, coinciding with school holidays in India. An increase in travel has also been observed during the latter half of the year, especially during the Indian festive season of Diwali. Honeymooners prefer the period of November - March. Corporate activities and events are also organised between October-December.

Popular European destinations in India

France in India promotes itself as a ‘standalone’ destination, but at the same time is also keen to work in close collaboration with its neighbouring countries for a holistic promotion of destination Europe. There are many elements which contribute to the popularity of overseas destinations. One very prominent factor is Indian cinema as an increasing number of movies are filmed abroad. The popularity of Switzerland is largely due to the large number of movies that were and continue to be filmed here.

The recent success of an Indian movie filmed in Spain has garnered great popularity for this destination as well.

Great Britain and especially London have always been on the European agenda of Indian visitors, particularly with reference to the Visit Friends and

Relatives category. Germany, often considered as a MICE destination, has gained success in promoting itself as a leisure destination. Various regions of Italy are also extremely popular in India. In recent times, there has also been an increase in travel to Central European countries such as Austria, Hungary and the Czech Republic.

Challenges for France • Visa

Atout France - France Tourism Development Agency always encourages the vast majority of travel agents and tour operators to submit their clients’ visa cases on a timely basis especially in the peak season and particularly in Mumbai which implements biometric procedures. • Economic trends

The negative effect of the economic slowdown has impacted outbound

Dijon in eastern France is attracting Indian tourists OT Dijon

Page 78: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Tourism

Special France-India 2013 BIZ@INDIA78

travel as well. The devaluation of the Rupee against the Dollar and the Euro was to a certain extent responsible for the slowdown in travel. As an immediate effect, travel to long haul destinations such as France and other European countries was affected. On the other hand, this largely benefitted countries in the Asian continent, notably South East Asia. For 2013, the outlook seems slightly more positive and current trends indicate that enquiries and travel bookings for European countries including France are underway.

Role of Atout France-France Tourism Development Agency

As a tourist organisation promoting France as a destination of choice to visitors, the strategy adopted is manifold. Atout France seeks to cement and expand its network of contacts in the travel industry. As part of its activities, the agency organises an annual workshop for members of the travel trade which involves the participation of several French partners representing different regions, hotels, sightseeing options, destination management companies and others. On ground and online training

sessions are also organised with a view to enhance product knowledge of

destination France. To create a direct channel of communication with the end consumer, Atout France engages itself in communication campaigns spanning diverse media platforms. Thematic press trips to France are also organised and reputed television houses, newspapers and magazines are invited to participate and present different facets of France.

Communication campaignsThe agency in collaboration with its

partners – French and Indian is also involved in the creation of effective

communication campaigns appealing to the discerning traveller. In 2011, the agency launched its ‘France Celebrates India’ campaign in collaboration with its partners. The campaign aimed at promoting France as a warm and welcoming destination. A compilation of 70 travel offers was presented to the Indian traveller spanning accommodation, travel, sightseeing, entertainment and other options.

New and renewed offers are in the offing for 2013.

This year, Atout France has also launched its unique communication campaign, ‘Be There! Do That!’ focusing on experiences. Given the interest and rise in experiential travel, this campaign aims to present undiscovered facets of France to the discerning traveller.

Under the umbrella of this slogan, a variety of experiences possible in various French regions is being promoted to the Indian traveller.

The objective of this campaign is to acquaint the visitor coming to France with the French art de vivre and encourage them to be a part of France’s way of life during their French sojourn. n

Lourdes in southern France is a major pilgrimage centre OT-Lourdes

France is often perceived as a unique destination and is associated with

luxury, wine, gastronomy, lifestyle and culture. Paris has always been a popular destination for the Indian

visitor and its luxury element entices the high

end traveller as well.

Page 79: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

CONTACT:

B-127, Basement, Malviya Nagar, New Delhi - 110017, Tel.: 011 - 65951911 Mobile : 9810712938, 9910059312 ,E-mail : [email protected], www.indianngoaarohan.org

Aarohan was formed in 2005 and works in the area of education for underprivileged children. Our focus is on helping children who live below the poverty line in accessing and benefitting from State Sponsored Education.

AarohanHarbinger of Hope for the Weak

Aarohan wants every child to realize that they have a right to a mainstream standard of education. To make this possible, we not

only provide academic support to our students but also work with their parents, larger community and government schools so that

their academic pursuit is supported in every area of their lives. By harmonizing the main support networks of each child's life-

parents, community and school- we first assist children to gain admission in MCD and government schools and then provide the

academic and logistical support for them to continue and finally complete their education

Sponsor Teacher: For just Rs. 3000/- Per Month you can provide a trained teacher for classes ranging between I and X. At

the moment thisis one of Aarohan's most immediate needs

Sponsor the Education of a Child:By donating Rs. 3600/- annually you will provide a child with all the basic study material

required.

Sponsor the Mid-day Meal:of minimum 50 children (one shift) for Rs. 10/ per day per child. We have found that many of our

children do not get 3 square meals a day and find find it extremely important to provide nutrition so that the children can

concentrate on their studies.

Sponsor an Outing: Be it a picnic in a Park or a visit to the Zoo, Historical sites, Amusement parks etc. by donating Rs 15000/-

you can sponsor for 100 children. We take the children for outings at least twice a year. Most of the children have never stepped

out of their slum areas and an outing is a rare treat for them

1.Stationery, school-bags, water-bottles

2.We accept contributions of gifts/sweets/new clothes for the children all year round. You can sponsor a child's happiness

on a festival.

3.School-uniform, school shoes and socks-Rs 250/- per child. Sweaters –Rs. 100/- per child

4.We accept crossed cheques / drafts made out to AAROHAN SOCIETY. Our A/c. No. VIJAYA BANK

A/c. No. 604201010001665

How you can help us:

Or you can donate:

Page 80: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

INTERVIEW

Feb Special 2013 BIZ@INDIA04

.

PuducherryFrom Pondicherry to

Page 81: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Tourism

BIZ@INDIA Special France-India 2013 81

Window of India on France for some, or window of France on India for others. Whether you call it Pudu or Pondy, it always comes with a cherry, on the cake, of course. On the occasion of the visit of President Hollande to India, Alexandre Seviran takes the route down the memory lane to renew the flame of passion that both countries share. Past or present, heritage or art de vivre, French or Tamil, let’s take our bateau-mouche or ferry, to explore the city’s worst and best between the two canal banks.

Life of Pi, the international best seller, the global blockbuster and the probable multi-Oscar winner has removed the veil of mystery and throws a soft nostalgic light on the splendour that was Pondicherry, the ancient French colony. Another way to look at Pondicherry (now Puducherry) is this figure : 700. This is the that INTACH, the Indian National Trust for Art and Cultural Heritage, gives to attract funds from the lovers of stone, history and art : these are the number of ancient and heritage buildings that have disappeared in both the French and Tamil quarters, under the pressure of the onward march of urbanisation, a march that is forced by modern India on its cities and villages.

As usual, the truth lies somewhere in between, like a dichotomatic approximation between the good and the evil. If I were to develop upon my first visit to Puducherry, I would only talk of the frustration of a meeting from which I expected way too much, but can it still become a city that one speaks of as the ‘Riviera of the East’ or the ‘Indian Côte d’Azur’?

I would not talk much about the meteorological aspects during my visit which coincided with a thunderstorm and cyclone over the Bay of Coromandal, neither on the pot-holed streets of the French quarter that sewage works did not completely succeed in keeping out nauseating smells and definitely not upon my unfortunate choice of the hotel where the owner’s sole interest was to fill up rooms even by double reservations while completely ignoring

the maintenance of the humid and moss-eaten walls. I would not reveal the name of this very famous hotel in the city, just wishing that you would avoid it, especially if nursing a rheumatism.

Another disappointment was the sight of that sad sea, lined with a tourist’s nightmare in cement and bricks – a heart-breaking view of this beautiful and classic building of the colonial Town Hall and its arcades, balconies and colonnades, fallen into a state of complete despair. If the passing Ambassador car did not spit its diesel fumes in my face, I was almost drowning in the nostalgic images of the ravaged waterfront of Havana on a bad weather day. At this moment, I recognised that my first and short visit was hardly inspiring.

Then, after some time, less indisposed and with a more open mind, I went back to my thoughts and challenged my memory. With the sun having finally fought through the clouds, the city, its temples, its people and its life, all had just regained their stride, that which makes Puducherry so famous and well known not just in India but indeed around the world, a quiet and cushy destination.

Found under the sun, city, temples, people, life had just regained its stride, which is notorious for its Pondicherry and popular tourist reputation: quiet and cushy. In the buzzing Colbert market, transactions moved smoothly and the traveller, in a warm and humid atmosphere, was sailing between the stalls like a fish in its broth. Churches

had regained their pastel colours and show-cased large nurseries with a well-fed and golden baby Jesus, resembling a golden brioche just out of the oven in midst of the characters of nativity, with eyes as big as their bellies, rivetted on the divine new-born.

The streets in the historic parts of Puducherry now strutted in a Mediterranean allure, showing off their newly-renovated villas and their beautiful forms found once again. I visited the modern hotels holding no pretentions other than being a haven for the travellers and a bridge of heritage between the generations for the transmission of a lifestyle that is the product of a very French understanding of the ideal comfort.

Even the documentary research in the well-stocked linear shelves of the well-stocked library of the Aurobindo Ashram, the study at the table in the small, intimate workrooms sheltered from outdoor light by blinds or reading languidly sitting on a rattan seat on the terrace seemed extremely relaxing, soothing and pleasant. As if to make up for my experience earlier, Puducherry went as far as to offer for my pleasure her recently renovated park and its wildly animated pétanque games which lent her the airs of St Tropez.To discover this Puducherry, far from the one I cherished the least, I provide you the right kind of addresses that can save you from the dark aspects of the city and allow you to discover the best that this Franco-Indian marriage has to offer to travellers in search of sweet languor.

Between the two banks

Page 82: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Tourism

Special France-India 2013 BIZ@INDIA82

A small mottled booklet in a bookstall in Puducherry, with a limpid title : The French India, by Rene Pelissier. On the cover is a reproduction of a map of Pondicherry in 1778 and two medallions honouring the two Glories of the City, the Royal Standard of France in India, Dupleix and the Marquis de Bussy, Governor Generals of the French institutions in India. A preface in an elegant French of late nineteenth century signed by Martineau, the retired successor of these two prestigious personalities. There wasn’t any back cover to add to the definition of the contents of the book.Upon reading, the book proves to be text of the official presentation of the French Indies pavilion at the International Exhibition of 1937. A retrospective emotion of the reader knows that this will be the final official representation of these territories, before being torn apart by the Second World War and the subsequent decade of decolonising conflicts in the East. A chain of events that led to the cession of Puducherry and other colonies in 1957 and hence concluded, with the exception of a few islands, the French experience on Asian soils.

This fatal intuition filled out for Martineau when, in his introduction, to justify the importance of the document, he says : ‘(This study) will remain as an inventory drawn up at a time well suited to educate not so much our contemporaries in life as their descendants.’’ A laudable goal that 76 years later, Media India Group relays in honour of the visit of the President of France to inform the people of the India about of the perception, the sincere attachment and the deep respect that the French of the East had felt for these fragmented shores and their people who made the empire of the French Indies. This booklet, besides being a precise report of what these territories were at the time, is also a homage

to the splendours and riches of the mysterious civilizations for the Western subconscious and to the stories and legends they carry and which founded the dreams of glory of their ancestors, such as Dupleix, plunged with burning passion in the splendor of the Nawabs and their courts of gold, pearls and diamonds.

The story is well known and well documented, and for the visitors to Puducherry it even appears on the street nameplates: the foundation of the Compagnie des Indes by Richelieu and then its reorganization under Colbert before his statement which led him to compete intensely with the British, there is also François Martin, the founder of the colony, and Dupleix the first major Governor of the colony who would pay from his fortune for his dream of demiurge, his admiral Mahé de la Bourdonnais, the winner of the battle of Madras, his faithful ally and future successor Bussy, commander of the feared warriors sepoys of the Deccan and Suffren, the glorious sea admired even by his enemies, until Lally, the heroic defender of the city during the siege of 1760-1761.

The history of the eighteenth century the company of these men and their relationship to the royal power have drawn the future destiny of the French presence in India is essentially about a relation essentially commercial led to an exchange of admiration for each-otehr’s cultures, be it towards the shining and powerful Mughal empire, the rich diversity of the Hindu spirituality or the superhuman force

A French Souvenir

Page 83: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Tourism

BIZ@INDIA Special France-India 2013 83

displayed by the Malabaris. They also escaped the classical colonisation model that France would impose under distant skies, which would also cede the colony peacefully, but not without resistance and regrets, nearly a decade after the British were forced to leave India in 1947 after a prolonged independence movement, aptly called Quit India.

The author works in the style classical of the studies of the period. First, a study of the physical geography of different colonies and their positions relative to river and sea routes, description of climate and seasons, especially the regime of alternating winds which president over the monsoons, description of the flora and fauna of these regions and the agriculture, all endorsed with remarks that show a sharp analysis of the period about the possibilities and limitations of these lands. It talks of their exceptional fertility - “everything grows here !’’ and the general lack of water, the economic

obligation of building and maintaining dams against any loss.

Following geography of the lands is the human geography with a summary of what makes the flavour of the place “where we found the oldest traces of human presence on Earth”, its social organization, with the caste system that raises many questions, its multiple religious beliefs, including Christianity and Islam, which have found a fertile ground for their preachings, and the surpirising manners and customs including the typical meal taken on the banana leaf accompanied by a large sip of water.

Interestingly, Pondicherry was amongst the most densely populated areas in the country with 506 inhabitants per sq km, an element which gives information about the need for infrastructure, including undergraduate education or health, that the public authorities of the time had to develop. The booklet then moves to the economics of the period and it

appears that agriculture dominated in its intensive form (including indigo, the pride of Puducherry), the industry was in its infancy except in forging and foundry, some grain treatment plants and a few spinning mills, employing 10,000 workers, and trade flourished thanks to the role of Puducherry as a transit port between the mainland and the more distant colonies in Indo-China that made for a positive trade balance, with 80,444 francs and 26,210 tonnes in imports as against 143,373 francs and 95,752 tonnes in exports.

The chapter on the governance had necessarily been modified by the passage to the 4th Republic and hence it would not have been an exact system of representation and rights that was left behind in 1957. The perimeters of their jurisdictions brought together the finances, the tax office, the public works and communications department, the maintenance of bridges and roads as well as canals and the technical services for the ports, the water services as

Page 84: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Tourism

Special France-India 2013 BIZ@INDIA84

well as those of health and education. The network of railways and telegraph were like the enclave, enchained and dependent upon the Anglo-Indians. Conscious of their limits, the governors of the epoch did not have any illusions about its capacity to develop beyond the activities of commerce, more so the India Act diving the British and French India put a lot of pressure on its activities and even its very existence.

The booklet concludes with its description of the sumptuous pavilion of the French Indies at the International Exhibition of 1937. It raves about its spectacular architecture reflecting the noble houses of colonies and the exhibition of objects of art enhancing the mix of cultures: a pérystyle dressed by “slender columns” carved bamboo in a manner similar to the architecture of the Gingy temple and the “graceful canopy” that it bore more than 15m away, as well as the dominant two carved elephants, a showroom exhibiting religious effigies and sculptures in bronze, furniture of the Compagnie des Indes showing a unique French interpretation of the distinctive Hindu-Muslim crafts. Finally, a patio dedicated to Dupleix and the bas-relief of David, a masterful synthesis of life in the French Indies royally decorated just as a full stop in a phrase that inevitably affects its end. The final word, as in any good family gathering, belongs to the patriarch, Martineau, under the impact of the smell of incense and lulled by the languor of Hindu music escaping from the pavillon, immersed himself in the memory of the pagodas and of these Indians of whom he said that “under the green canopy of coconut trees ... under their beneficent shade (it happened to him) more than once who talks with them, of their stories so rich and their philosophical conceptions so special, having the feeling (that) he often had to deal with very flexible minds, very fine, and very distinguished.” Then, the author concludes story as would the poet:“Blessed is he who, like Ulysses, has been on a beautiful voyage...” n

Hotels & Maisons d’hôtes

To be highlighted here that INTACH has participated in a project of renovation and rehabilitation of these sites.

Hôtel de l’Orient17 Rue Romain RollandThe proud outcome of a major restoration project undertaken by INTACH is a hotel of renown, managed by a specialist recognised by the chain Relais & Chateaux in India, Francis Wacziarg. A faithful and luxurious reconstruction of the period to sleep in the beds of the French governors of Puducherry during the 18th century.

Villa Shanti14 rue SuffrenThis new luxury boutique design hotel and its restaurant is rapidly gaining popu-larity. (Profile in India & You, November-December 2012)

La Villa Helena13 rue Bussy

La Maison Perumal44 Perumal Koid StreetThe two charming bed & breakfast places, one each in the French and Tamil quarters, where, exhausted from having walked around all day in the streets of Puducherry or having driven to the city from your home town. Do remember that walking or cycling are the ways of moving around in Puducherry.

Dining/Drinking

La Maison RoseSet in the gardens of the villa, a neo-Indian menu to attract the gourmets of the city, specially those who love beef and miss it, tender grilled beef is at its best. Within the villa, you can also find objects from all over the country and clothes designed by the owner of the villa who has adjusted himself perfectly to the relaxed and summer-like atmosphere of the French quarter.Le Café des ArtA small, unpretentious address where a Franco-Tamil couple welcomes you warmly for breakfast or brunch and serves you tea or coffee with milk along with baguettes and croissants. Sandwiches and drinks, soda and fresh lime juice are available at any time. The place offers a beautifully landscaped garden, a well-stocked library to help you relax and organises exhibitions of local artists to whet your curiosity.

Page 85: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Biz@india Special France-India 2013 85

As a Bluebell dancer at the Lido de Paris, I have had wonderful opportunities to travel around the globe. However, I have

never been anywhere quite as special as India!

This year was my first (and definitely not my last) trip to India! I was so excited when our International Sales Manager ‘Marie from the Lido Show’ (that is what her Indian clients call her) asked me to accompany her. Marie has been visiting India for the past six years to meet our main Indian partners and the success of Lido Show is just phenomenal! I was looking forward to it for months, and it really exceeded all my expectations and I was just blown away. It was terrific to have the chance to meet many of the Lido’s Indian clientele, and represent the Lido and bring the Bluebell and audience together personally!

Promoting the Lido is an honour but to hear the sensational feedback and personal reviews of the show was just incredible and so admirable. The people really touched my heart and I felt throughout my trip so welcomed and accepted into this beautifully colourful country! I had the pleasure of visiting four cities, Mumbai, Ahmedabad, Bangalore, and Delhi, and was astonished at how versatile India is. However, I felt, the heart and spirit of the country remained the same throughout each city, truly loving, spiritual and just divine. The flavours, colours, intricate architectural treasures, sound and spice is just breathtaking!

Globally, the Lido is recognized as being one of the most sensational

and beautiful cabaret shows to see, and many Indians I met told me you haven’t been to Paris unless you have seen the Lido! Performing at the Lido is the dream and hearing the heartfelt compliments and congratulations make it a dream come true!

I perform in the show ‘Bonheur’ twice nightly, and have been apart of the company for six years now. It is quite a physical and demanding career, requiring a lot of stamina and superior technique. Each of the 70 artists are professionals and the best in there art! The criteria required to join the Lido is of the utmost highest standard, but that is one of the reasons why the Lido

is the best! I perform because it’s my passion, and to be with the Lido is an honour. It really is my second family and all aspects of the production backstage and in front of the curtain work intricately together in order for production to run so successfully! That’s why working and promoting the Lido, for me, is just as important as performing, and I truly loved meeting some of the Lido’s Indian clientele, and hearing the tremendous feedback! My experience in India has been phenomenal and I will treasure it forever. It is one of my fondest memories working with the Lido de Paris, home to the famous Bluebell girls!

India charms

Parisianenchantress

n

First Person

Page 86: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Education

France, the name immediately conjures up images of the Eiffel Tower, gourmet cuisine, high-end fashion, home of the

Mona Lisa and a lot more. However, now more and more Indian students are discovering the many benefits of studying in the land of aesthetics. France, today, hosts more than 290,000 international students in 87 universities, 230 business schools, 240 engineering schools and more than 1,500 other institutions; making it the fourth most preferred destination after the US, UK and Australia. With more than 20 per cent of the annual budget spent on education, French

Special France-India 2013 Biz@india86

universities and public institutions offer subsidized education for both French and international students.

France scores high because of the quality of its higher education, at par with the best in the world. Also, its rich cultural heritage, history, gastronomic delights and vibrant social life make it a much-desired destination. Ridhima Verma, Education Advisor, Campus France, says, “With Paris ranked as the best student city in the world, the country certainly highlights its magnitude of commitment to sound education by providing quality education.” Campus France was launched by the French government to promote France as an

attractive destination for higher studies for international students. “More than 300,000 international students receive and experience refined pedagogy in higher learning and internationally renowned research centers. Additionally, the students witness a rich blend of diversity and French tradition. Not only do they get to enjoy special privileges in the form of extensive system of discounts, assistance, impressive range of courses and state-of-the-art facilities but they also get an opportunity to discover the extraordinary variety of landscapes, towns and regions,” she adds.

France has many attractions for Indian students for higher studies, including scholarships. Keen to lure more Indians, France has launched several programmes focused on exchange of postgraduate students, faculty members, and academic information and materials, which has fostered relations in this key domain between the two nations, observes Jasleen Kaur.

France says “bonjour” toIndian students

Page 87: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Education

Biz@india Special France-India 2013 87

French – No longer a barrier! Studying in France not only helps students experience French culture, but also gives them a golden chance to learn and improve spoken French, a language spoken by close to 200 million people in 47 countries. However, instead of seeing this as an opportunity, students see the French language as a hurdle. Many students also believe French to be the medium of instruction. However, the reality is that all courses (almost 96 per cent), barring a few, are in English, making it possible for Indian students to continue their education in a language they are comfortable in. In fact, the number of students going to study in France has been increasing steadily. Last year, about 2,500 Indians made their way to France for their higher education, and this year, more than 3,000 Indians are expected to proceed to France for higher studies. This has fostered the education tie-ups between the two nations.

Of late, elite institutes like Ecole Polytechnique, Universite Pierre et Marie Curie, Paris Sud, ISAE, ENAC (for science and technology), INSEAD, HEC, ESSEC , ESCP (for management) and ENS and SciencesPo (Humanities and research), have caught the fancy of Indian students. These institutes have tie-ups with Indian institutions such as the IIMs, IITs, NLSU, IISc, DU, St Xavier’s, University of Madras, University of Calcutta, Chennai Mathematical Institute, Jamia Millia and St Stephen’s College, among others. The number MoUs signed between prestigious Indian and French university and private institutions has crossed the 300 mark in several disciplines including new ones (heritage conservation, digital archiving etc) for student and faculty exchange.“The exchange programme has been on for the past five years. The demand is growing and this year students from around 14 French universities wanted to visit,” says Chitra Krishnan, head of the French department, University of Madras.

HEC Paris and the Indian Institute of Management Bangalore (IIMB) have successfully extended their on-going partnership, HIEP 2009. In the first year of the HEC IIMB Exchange Program (HIEP 2009), 14 IIMB students selected for this programme visited Paris from December 6-12, 2009. They were immersed in the European business environment through a series of classroom lectures given by HEC Professors and visits to top French companies such as Dassault Systems, LVMH, Fauchon, Schneider Electric and Areva. They also had the great opportunity to visit the ‘Assemblée Nationale’, as well as fully experience the Champagne Valley and its famous Champagne Houses.

Similarly, 14 HEC MBA part-time students visited IIMB are working executives across a number of industries. They are of different nationalities, coming from countries such as Italy, Brazil, France, the USA, Senegal and France. During their one-week stay at IIMB they visited a number of companies and attended lectures.

These projects are expected to lead to a deep appreciation of the business environment on both sides, in a short period of time and provide a unique opportunity for cross-cultural learning of business and management in both France and India.Another such initiative was the MoU signed between IIM, Raipur and Grenoble Ecole de Management seeking student and faculty exchange programmes, collaborative research projects and organization of joint academic and scientific activities.

In the field of education the emphasis on the French side has also been on the promotion of teaching French language and culture in India. The French language tutor programme is being organized by French Embassy and is aimed to help Indian higher educational institutions to develop teaching of French language. A MoU was signed during the visit of President Sarkozy in 2010 between President Grenoble 3 - University and IGNOU for promoting the study of French language. There exists a MoU between the Maison de Science de l’Homme (MSH) and the ICSSR (Indian Council for Social Sciences Research), UGC, ICHR (Indian Council for Historical Research) and ICPR (Indian Council for Philosophical Research). The major activities under this MoU are: collaborative research projects, seminars, workshops, conferences, exchange of scholars, documents, data, publications etc. The French Government offers subsidy to MSH to facilitate visit of researchers, every year (duration one month) within this framework. Dinesh got his Masters in International Affairs with Environment Sustainable Policy Making from Sciences Po Institute located in Paris. According to him, marks are not the only criteria that the French institutes look at during admissions. Personality, reasons for choice of course and extra-curricular activities are given equal weightage. He also says that education in France opened doors to other parts of the world for him.

Shipra who got her degree of MBA from HEC – Paris, shares, “HEC is one

Page 88: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Education

Special France-India 2013 Biz@india88

of the best known B-school within France and has a very good reputation all over Western Europe. HEC’s MBA provides several unique opportunities - via double degree and joint degrees - for students to cross discipline and specialize beyond their MBA. The programme is relatively small with about 200 students but HEC’s diversity is magnificent. Majority of the class hails from outside Europe.”

“The French institutions do not distinguish between international students and French students. Both groups face identical admission and tuition requirements and both receive the same degree. This not only facilitates student mobility at large but also makes France the most preferred destination for higher education. Annual tuition at most schools is between 3,000 Euros and 10, 000 Euros,” Ridhima informs. Talking about classroom experience, Ridhima informs, “Case studies, internships and presentations are key elements in the French classroom. Emphasis is laid on both theoretical and practical aspects of learning. A highly organized way of instruction is followed in the institutions across the country.”

Courses on the table Keeping in mind the world’s emerging

economies with internationalization and globalization as the driving forces, a rich palate of customized and career specific courses taught in English are on offer in the French education system which is based on a three-tier system:• Public Universities’ – Diverse, broad area and specialized subject courses

of all levels based on a programme of three successive years of study are offered at the French government funded universities. Students on completion of ‘Baccalaureate’ are eligible to enroll in theses universities. No separate selection procedure is followed at the time of enrolment.

• ‘Grandes Ecoles’ – Specific career oriented domains like Technology, Management, etc. are being offered to the students thereby helping them in their professional formation. Applicants of ‘Grandes Ecoles’ are subjected to a strict selection process which varies from school to school and program to program. They are either run by the State or are public fee-paying establishments. • ‘Specialised Schools’ – Wide range of vocational courses, namely, Fine Arts, Acting, Nursing, Journalism, can be pursued in Specialised Schools. There are numerous course possibilities in terms of level and length of study.

Though traditional courses like management and engineering remain a big draw, there are a host of other

programmes that attract Indian students. Such as INSEAD, HEC and ESSEC are at the top of student’s wish list as they regularly feature in the list of the best management schools in the world. Twinning programmes with other prominent management schools enable students to study in top notch institutes in other countries.

Whether private and independent or affiliated with a chamber of commerce and industry, France’s 230 business and management schools offer curricula and teaching methods that are attuned to the changing economic environment and the latest management practices. Most programmes rely heavily on internships and advanced technology. Business school degrees are national diplomas regulated by the French government in accord with the highest international standards.

France has always been at the forefront in the fields of technology and sciences. French universities are globally known for their high standards of excellence across the sciences. Many public state run universities and renowned grandes ecoles focus on engineering, mechanical, computer science, IT, telecom, aeronautical engineering are the most popular choices for Indian students. Even other science courses like food technology and biochemistry find many takers in India.

France is also the premier destination for anyone wanting to pursue a career in culinary field. This is because of the great influence that French cuisine has over western cuisine. Studying at ‘Le Cordon Bleu’ or Paul Bocuse Institute is a dream for anybody aspiring to be a chef. Even for a professional, a stint at this prestigious institute can help kick-start his career all over again.

Art and fashion have been an integral part of the French culture. Fashion has had an impact on the cultural landscape of France since the 17th century. Today, France is the place to be for high-end fashion, accessories and other luxury goods. This is attested by the sheer number of

The French institutions do not distinguish

between international students and French

students. Both groups face identical admission and tuition requirements

and both receive the same degree.

Page 89: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Education

Biz@india Special France-India 2013 89

couture houses present here. Chanel, Dior, Louis Vuitton, Givenchy, YSL and many more – the names themselves spell luxury. For students studying fashion, there can be no greater exposure than being in the centre of world fashion, Paris. And it’s not just fashion designing that pulls students of fashion to France. Fashion and art have spawned a variety of career options. Sanjyot Telang was looking to express her creative side and has decided to go to France to pursue European Masters in Photography. Telang chose to study at Speos Paris Photographic Institute instead going to the United States. She says, “France is the best place to collaborate lifestyle and art.” Telang continues, “My course, in addition to being practical, allows me to experiment as well.

I found the course in US to be highly theoretical. In France, I have the opportunity to pursue my genre, fashion and lifestyle; but I will be able to combine it with art and present my work in the form of photo essays. This is not being offered at other photographic institutes, where I found the courses to be restrictive as well.”

Many top luxury fashion brands in the world are French. This has spurned the growth of other courses related to the luxury sector, which also find many takers. Siddhesh Kadam has chosen to study for his Master in International Brand Management, Marseille. He says, “France is the Mecca of Brands.” He adds that with many professionals scheduled to deliver lectures at this institute, it would be a golden chance for him as he gets to learn from the best in the business. According to Kadam,

I hope to learn more about the French culture, values and concepts. On my return, I hope to replicate all that I learn into the Indian context.”Besides these courses, France also has many niche courses. “We also have students going to France for specialised niche courses such as wine management and perfumery. In short, France has courses for everybody and in every possible field imaginable,” says Campus France’s Ridhima.

Grants and financial aid Education in France continues to be

highly subsidised, making a wide range of degrees available to young aspirants. Every year, the French Embassy in India along with few renowned French companies award scholarships totaling Rs 70 million to over 300 Indian students and research scholars.

Students with excellent academic and extracurricular participation records and a detailed ‘Letter of Motivation’ stand a chance of availing the benefits of the scholarship. Benefits of the scholarship could include a monthly stipend of 615 Euros (maximum), overseas medical insurance coverage and tuition fees waiver.“Coming from a very modest family like mine and being able to study at Sciences Po, France’s leading university in social sciences, is like a dream come true. More than a professional experience, this has been a fantastic human experience for me since it gave me the values of education and money,” says Mahendra Dewasi, a 21-year-old, recipient of the Emile Boutmy Scholarship for studying at Sciences Po College Europe-Asia in Le Havre. “I wanted to come to Europe and especially to France since I had always been a big admirer of French culture and since I also wanted to learn French”, he explains, before adding, “When you learn a foreign language, it helps you understand better your own language.”

Staying in FranceWhile studying in France is cheaper

than other countries, the cost of living is

comparable to major European cities. About 600-800 Euros per month would be needed to cover living expenses, which is higher in cities like Paris.

Savoir VivreLiving and studying in France can

contribute to shaping one’s personality. The nation’s treasure lies in its quality of education, its dynamic economy, culture and renowned and diversified gastronomy. By experiencing all this along with their higher education international students tend to progress with an open mindset to deal with challenges that the economic world outside offers. Thus, France and its education system not only impart theoretical knowledge to its students, but also prepare them for more enriching experiences in their life ahead.

Work while you studyAll international students can work

part time if the institute where they are studying is approved by the French social security system. Students are paid 9 Euros per hour and can work up to 20 hours a week. A lot of professional courses also have a semester where students can intern with organisations. This helps students get experience with pay while they are still enrolled at school.

An internship or a job with a French firm is a great way to broaden the French experience. International students can attend various job fairs and interact with placement cells within campus to understand and identify various career prospects and opportunities.

Visa processThe entire visa process could take up to a month. Campus France also guides students and helps them complete all the pre-consulate procedures. All students have to appear for a personal interview at the French Embassy or Consulate-General of France closest to the place of their residence. It can take 8-9 working days to process the visa after the interview. n

Numbers game•300,000 international students•87 universities•230 business schools•240 engineering schools•1,500 other institutions•2,500 Indians made their way to France for their higher education last year•300 scholarships awarded to Indian students from the French Embassy in India

Page 90: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Special France-India 2013 Biz@india90

Culture is one of the strongest bonds in the Indo-French ties and the two countries take care to continuously nourish this vital link by mounting large-scale nationwide festivals. After the remarkable success of the first editions of Bonjour India and Namaste France, the two countries are now preparing to launch the next edition of these festivals that celebrate art and culture.

The Indian Council for Cultural Relations sponsors a number of Indian practitioners of dance, music and arts to

France. Participation by Indian artists has become a regular feature in every major cultural event in France. There are on average 4-5 major events per month with either India as a central theme, or Indian events as part of major event or events organised by Indian and French associations. There have been about

31 photo exhibitions, including those on the occasion of commemoration of Gandhiji’s death anniversary and 21 art exhibitions. Around 23 music concerts (Hindustani and Carnatic); 24 dance performances, 14 cultural festivals and 13 Film Festivals with Indian participation have taken place.

The first Festival of India in France was inaugurated in 1985 by late Prime Minister Rajiv Gandhi in Paris and left a lasting impression in the minds of the

French people. Then came the French festival, Bonjour India, in 2009-10 and the Indian festival, Namaste France, which brought the Indian and the French public closer to each other. The latest one, Bonjour India 2013 has opened new perspectives, with joint productions by Indian and French artists working together on the events of the festival. “The preparation for the festival created lasting ties between the two countries at all levels, be

Nourishing links through

ulturecCulture

Jasleen Kaur

Page 91: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

it greater student interactions in universities, academic exchanges and partnerships between institutions, scientific and roundtable debates, French and Indian companies coming together to support the festival,” informs François Richier, Ambassador of France to India.

Where one side, as part of Indiamore concert recently organised in Delhi, painter, composer, arranger and musical director Christophe Chassol paid tribute to Indian music and culture through a performance mixing sound paintings and screen shooting. On the other, the birth centenary of Amrita Sher-Gill was celebrated with

the launch of ‘Amrita Sher-Gil: A Life’ by art historian and critic Yashodara Dalmia at French Embassy in New Delhi. The considerable interaction between French and Indian art is exemplified in Amrita Sher-Gil‘s trailblazing work, which influenced and inspired the trajectory of the modern art movement in India. Her journey can be traced from her training in Paris to its triumphant culmination in India where she invents the course of modern art and influences generations of artists.

To map French inspiration in Indian architecture, Indian conservation architect Aishwariya Tipnis made a first attempt to show a slice of Indo-French history. The works of photographers Anay Mann, Gigi Scaria, Serena Chopra, Rishi Singhal, Isabel Saij along with Jean-Pierre Dubois who revisited

Culture

Biz@india Special France-India 2013 91

Participation by Indian artists has become a regular feature at cultural events in France.

French built and intangible heritage in India in 2012 and brought to life France in India in an exciting journey bringing back with them their own stories, were exhibited Alliance Française, Delhi.

For French gourmet experience, Chef Stéphane Mathonneau from France has come to India to be a part of a fresh take on the traditional French bistro through the upcoming bistro project of Indo-French bistro-lover, Naina de Bois-Juzan in Defence Colony in New Delhi. And, the diversity of French cinema is all set to be showcased at Indian screens of seven cities as part of the Film Festival, ranging from animation to thriller to popular movies.

Count on the cultural events organised in the recent past. These have helped to strengthen cultural bonds between the two nations and it will continue to get nourished in the coming years with many more festivals.

Max Claudet, Director of the Institut Français en Inde, enlists the latest initiatives taken to forge relations between the two nations in the realm of culture:• Twomobilityprogrammesforartistsin residence have been launched for the period 2012-2013 in the fields of contemporary dance and architecture. This is to facilitate French dancers and architects coming to India and vice-versa.• One training program for IndianMuseum curators is in the process with the Musée du Louvre of Paris • The Tagore Grant for publishershelps around 10 projects a year of publishing French fiction, essays or

literature for children in India (English or vernacular languages)• Assistantship programmes sendyoung Indian students as assistants for teaching of English in French lycées or universities• FrenchTutor’sprogrammes, sendyoung French scholars as assistants for teaching French in Indian Universities• 300 odd scholarships a year forIndian students who seek to go to France and so forth

“Basically these grants promote existing relationships and help forge new ones through cultural discovery. Other major initiatives are bilateral festivals such as the Bonjour India festival in association with the Indian Council for Cultural Relations and the Alliances Française network in India. This is followed by Namaste India, the Festival of India in France organized by the ICCR in France,” adds Claudet. n

The first Festival of India in France was

inaugurated in 1985 by late Prime Minister Rajiv Gandhi in Paris and left

a lasting impression in the minds of the

French people. Then came bilateral festivals

- Bonjour India and Namaste France

Page 92: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Bonjour India 2013

Bonjour India 2013 brings the creativity French artists to the Indian soil and mesmerizes the Indian audiences with the different shades of French culture – from music to art, literature to fashion, cuisine and much more.

Acting as a catalyst for new genres of art forms to meet and enrich each other, new ideating sessions tossing

up new projects and along with these come the discovery of many more cultural partners along the way, Bonjour India has helped cement the robust ties Indian and France enjoy culturally. It is a bilateral festival organized by Institut Français en Inde and the French Embassy in India, in association with the Alliance Française India network and the Indian Council for Cultural Relations.

The Indian audience has been very engaging and receptive and has loved the diversity of the programme on offer that goes from street art, music: classical, baroque, hip hop, electro, world music, digital art, dance, educational and literary sessions and round tables, film festivals, gastronomy events , projection art and photography exhibitions.

The festival enthralls not only the audiences, but the performers too. Scratch Bandit Crew band made an appeal that people should come to have fun, to hear and watch something new because there are only a few turntablist bands in the world.

Angelin Preljocaj after the first performance of the Ballet Preljocaj, said, “I was apprehensive whether the audience will understand and like the performance, fortunately everybody loved it.”

“Bonjour India is an invitation to discover and re-discover France through its whole artistic dimension. As a real cultural dialogue between French and Indian artists, Bonjour India shows the sheer friendship linking France and India”, says François Richier, Ambassador of France to India.

An invitation to discover France

Culture

Special France-India 2013 Biz@india92

Page 93: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

the Avignon symphonic orchestra have created a special concerto for Sarod Maestro Ustad Amjad Ali Khan. The N+N Corsino group casts Indian dancers in an interactive digital art performance, Brigitte

Chataigner, inspired from movements from Mohiniattam adapts them to contemporary. The festival is replete with examples of spectacular events that are a consequence of interactions and collaborative efforts of Indian and French artists.

During the festival, there is a discernible French presence at major literary events in India. France is the Guest Country for World Book Fair 2013 in Delhi, while Prix Goncourt laureates Michel Houellebecq (2010) and Tahar Ben Jelloun (2007) have

Max Claudet, Director of the Institut Français en Inde shares, “Our aim is to bring a bit of France to your doorstep and be the window to French culture, whether it is for students looking for higher education options, or for those wanting to learn the French language, whether you wish to discover French thought through books or through cinema or through the diverse cultural programmes that we organize or even through the lively French Bistro to sample everyday French cuisine.”

Riding the wave of success from its first edition in 2009-10, the second edition which was launched on January 25, has been showing different facets of the French culture and this will continue till March 2013. From Jaipur to Kolkata, Delhi to Trivandrum, via Mumbai, Chandigarh, Nasik and several others, a total of 16 cities are playing host to over a 100 cultural events, which encompass Subodh Gupta designing the sets for Angelin Preljocaj’s Ballet, Patrick Rimoux and Nandita Palchoudhuri bringing light installations to Jantar Mantar with Indo French designer duo Lecoanet Hemant creating dresses made of LEDs during the spectacular show Luminocity. French director Eric Vigner casts an all Indian cast in a play called Gates to India Song, an adaptation of a novel written by Marguerite Duras. French composer Pierre Thilloy and

participated in the Jaipur Literature Festival. Albert Camus’ birth centenary has also been celebrated across India through a series of events.

Innovation to fashion and new trends, revisiting the past (baroque music interpreted by Amaryllis Dieltiens), navigating the present and fast-forwarding to the future (Greater Paris architecture exhibition on creating sustainable futuristic cities), the eclectic offerings of Bonjour India 2013 promise something to delight everyone’s palate.

Reflecting the longstanding ties of friendship between France and India, the events express the common passion for the arts, be a rich nurturing ground for new encounters, and inscribe yet another significant chapter of the relationship of the two countries.

“The relation between France and India has been developing over time, in respect to commerce, defence, technology and culture. Celebrating one of these facets is this festival. The purpose of the festival is to add more light and colour to our lives. This is a step forward to celebrate the existing ties between the two countries — this isn’t a French programme, but a collaboration of both, with excellent quality assured and a longtime investment to foster future ties,” adds Richier. n

Culture

Biz@india Special France-India 2013 93

Reflecting the longstanding ties

between France and India, the events express

the common passion for the arts, be a rich

nurturing ground for new encounters, and inscribe

yet another significant chapter of the relationship

of the two countries.

As part of Bonjour India 2013, French rock band

Vendeurs d’Enclumes performing in Trivandrum

Page 94: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

CINEMA

Cinema has been a crucial link in the bilateral ties. The cinema cooperation between India and France are spread in all dimensions of the art - be it Indian directors who take their cast to jive, roll and croon on the Champs Elysees or the French movies that hit the Indian screens; film festivals in India showcase the diversity of French cinema or Bollywood stars get conferred with French honours. The highlight for 2013 is the Cannes Film Festival where India is the ‘guest’ country.

Special France-India 2013 BIZ@INDIA94

Jasleen Kaur

Page 95: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

BIZ@INDIA Special France-India 2013 95

celebrations of Indian cinema took off in 2012, the year has been proved itself to be a milestone for Indian cinema internationally. France was even not far behind to honour the Indian cinema. The 65th Cannes Film Festival in 2012 witnessed a record Indian presence. The festival highlighted three independent Indian films in its main selections. First, Indian director, screenwriter and producer Ashim Ahluwalia was present in the official selection, “Un Certain Regard”, with his first fiction feature film Miss Lovely. Second, producer, writer and director, Anurag Kashyap was present at the festival for two reasons. His action drama Gangs of Wasseypur was shown at The Directors’ Fortnight, while his home production, Vasan Bala’s Peddlers was selected in competition at the Critics’ Week. What’s more, the Indian project The Untold Tale of director Shivajee Chandrabushan was one of 15 projects selected for “l’Atelier de la Cinéfondation.”

The selection of these three films at Cannes reflects the vitality of Indian independent film productions, which international audiences are yet to discover. In the 2013 edition of the Cannes film festival in May 2013, India is the Guest of Honour to commemorate the 100th anniversary of the Indian cinema. India will be the third country to be honoured by festival organisers following Egypt in 2011 and Brazil last year.

But it is not just the Indian cinema has made its presence in France,

but French cinema has also been showcased for the Indian audience. In October 2012, the 14th Mumbai Film Festival presented by Reliance Entertainment and American Express and organized by Mumbai Academy of Moving Image showcased the best of contemporary French cinema and welcomed artists for the fifth edition of the Rendez-vous with French Cinema co-organized with the French Embassy in India and Unifrance films. In addition, the special section “Rendez-vous with French cinema” wished to establish a platform for showcasing the various facets of French contemporary cinema, helping Indian distributors to promote new French films and celebrate the growing Indo-French ties.

Indian cinema in ParisParis, among other locales of

France, has been a major destination for shooting of Indian films. In 1967, actress Sharmila Tagore set pulses racing in her sexy appearance in the blockbuster hit, ‘An evening in Paris’. Since then, a large number of Indian filmmakers have used the backdrops of famous Parisian monuments in their films. In the last few years, many more have followed suit, including Don (2006), London Dreams (2009), London Paris New York (2012), Ishqk in Paris (2012), to name a few. Since 2005, more than 20 Indian directors-producers from various regions of India shot their movies in France. The movie ‘Ishkq in Paris’ (2012) starring Preity Zinta was the first film

Cinema

Who knew that that India would one day become the largest film industry in the

world, whose foundation was laid in 1913 by two French nationals, the Lumiere Brothers, who invented the cinematograph on 13 February 1895. It was the first apparatus for making and showing films to audiences in a way that would be recognizable today as ‘going to the movies’.

Almost 100 years old, cinema is one of the strongest lynchpins of the relationship between the two nations. The two sides are finding increasingly bigger audience for films in each-others’ nations and today, the Indian films have become a source of cultural bonds for both the nations. In 2010, the two countries signed a co-production treaty to encourage co-production of films and facilitate meetings and exchanges of producers in both countries. Déborah Benattar, Head of the TV & Cinema Office, The Embassy of France in India, says, “Cinema has become an important component of the cultural identity in countries like France and India. It is a remarkable achievement for Indian cinema that several Indian films, especially in Hindi and Tamil, have been released commercially in France. I strongly believe that this number will rise in the future.”

Film festivals fostering tiesFilm festivals act as an exhilarating

platform to celebrate the growing Indo-French ties. As centenary

Almost 100 years old, cinema is one of the

strongest lynchpins of the relationship between India and France. The two sides

are finding increasingly bigger audience for films in

each-others’ nations and today, the Indian films have become a source of cultural bonds for both the nations.

Lumiere Brothers invented cinematography in 1895

Page 96: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Cinema

Special France-India 2013 BIZ@INDIA96

of Bollywood that was shot entirely in France (Lyon and Paris).

Films have not been only shot in Paris, but also release in French cinemas. Gangs of Wasseypur, Ek tha Tiger and English Vinglish are some of the recent Indian releases in France. The process to lure more Indian filmmakers to France began in 2008, when a delegation of Indian producers visited the regions of Provence-Alpes-Côte d’Azur and Rhônes-Alpes, with the purpose of using France as a location for their future shoots. Put together for the giants of the Indian film fraternity by Maison de la France India and Film France, this was the very first time that the national agencies for promotion of tourism and film came together to put up such a project. This trip named “Sangam Tour” - a tribute to the 1964 masterpiece created by Raj Kapoor, the first Indian film shot in France - has enabled these great directors of Indian cinema to discover PACA and Rhônes-Alpes as the backdrops of their movies. Ravi Gupta, CEO of Mukta Arts in Bombay appreciates the quality of light in the south of France, saying, “I am convinced that filming in France is economically reasonable when you consider all that you will be capturing on camera; a rich heritage of natural and historical landscapes.”

Another growth driver for Indian cinema reaching to French shores

is Tax Rebate for International production. “France offers the TRIP, which supports Indian projects that are partly or completely made in France for films which are not official co-productions between a French producer and an Indian one. The amount allocated comprises of 20 per cent of the film expenses incurred in France and caps at four million per project. This TRIP is given to the French company managing the production in France on behalf of the Indian producer,” adds Benattar of the French embassy.

French cinema in IndiaFrance like India has a dynamic

movie industry. A number of French films have been hit all over the world, not just in the Francophone world. For example, The Artist, a film was released in India a year ago. A film by Michel Hazanavicius, it was very well received in India.

Now, as part of Bonjour India 2013, a French Film Festival will tour seven cities offering some of the finest contemporary French films. Six very recent French films will be showcased during this festival, ranging from animation to thriller to popular movies such as Populaire, In the House, Zarafa, Hand in Hand, The Dandelions and Camille Rewinds.

François Richier, Ambassador of France to India, says: “The excellent programme of films lined up for the

French film festival during Bonjour India is set to mesmerize the Indian audience. Aimed at showcasing the incredible diversity of French cinema, we believe it will provide exciting emotions and develop relationships with our two countries in the field of cinema.”

A landmark film, Intouchables, released in July 2012 in India, marked key progress in the efforts of the French companies to enter the market, with the assistance of Ubifrance, the French export promotion body. It supports the promotion of French films in India in the form of partial aid for dubbing, an invitation of the director or actor to come to India to meet the press and the audience, or through a communication plan via the cultural centres of France in India.

French honours to Bollywood starsMoreover, French government

regularly honours Indian film personalities with the French honour ‘The Knight of the Order of Arts and Letters’ which is given to people who have shown exceptionable contribution to arts in France and the rest of the world. Recently, Aishwarya Rai was conferred with the award by François Richier, Ambassador of France to India. Earlier Indian recipients include Satyajit Ray, Amitabh Bachchan, Shahrukh Khan, Raghu Rai, Nandita Das, Habib Tanvir, and Upamanyu Chatterjee. n

Page 97: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

INDO-FRENCH

In an endeavour to strengthen the Indo-French partnership, Media India Group has launched a unique initiative in the form of a website to highlight and promote various facets of this relationship. The website is an excellent medium to highlight some of the key areas where there is huge potential of building excellent associations viz. business, strategy, science & technology, cinema, culture, tourism,

education, to name a few.

This dynamic website will provide you an opportunity to make your own, informed choices about existing potential in these sectors. The website brings to you wide spectrum of updates that will keep you informed

about the growing ties and camaraderie between India and France in different sectors.

We invite all players in the Indo-French partnership, be it business, culture, tourism, civil society, education or any other sector to contribute your news and information to make this a unique, well rounded and the

meeting point for all of us. Send your information, pictures, videos etc to [email protected]

Strengthening the Strategic Ties

PARTNERSHIP 2013

www.franceindia2013.com

Page 98: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Of the five great European maritime powers of the sixteenth and seventeenth centuries, France was the

fourth to enter the race for commercial communication with India. The fifth power, Spain, never attempted the contest, and Portugal, Holland, and England had reaped considerable benefits from their enterprise before it attracted the attention of the French. Nevertheless, though the French were the last to enter, very soon they gained a firm footing and at par with their European rivals.

During the reign of Louis XII, in the year 1503, two ships were fitted out by some merchants of Rouen to trade in the Eastern seas. Though they set sail from Le Havre they were never afterwards heard of. The successor of Louis XII, King Francis I, issued declarations in which he exhorted them to under-take long voyages, and placed before them the financial and national advantages resulting from these. In 1604 a company was granted letters patent by Henri IV, but the project failed. Fresh letters patent were issued in 1615, and two ships went to India, with only one returning.

Historians have been contemplating the reasons why France was so late. They cite geopolitical circumstances

such as the inland position of the capital, the size of the country itself, the numerous internal custom barriers, the lack of cohesiveness of the merchant communities of the Atlantic coast set in their parochial ways and reluctant to invest significantly in a large-scale company that trade with the distant East Indies called for.

The Compagnie française pour le commerce des Indes orientales or the French East India Company was founded in 1664 to compete with the British and Dutch East India companies in Asia by sending an expedition to Madagascar. Planned by Jean-Baptiste Colbert; it was chartered by King Louis XIV for the purpose of trading in the Eastern Hemisphere. It resulted from the fusion of three earlier companies, the Compagnie de Chine, the Compagnie d’Orient andthe Compagnie de Madagascar. In 1667 the company sent out another expedition, under the command of François Caron (who was accompanied by a Persian named Marcara), which reached Surat in 1668 and established the first French factory in India.

In 1669, Marcara succeeded in establishing another French factory at Masulipatam. In 1672, Saint Thomas was taken but the French were driven

out by the Dutch. Chandarnagore (present-day Chandannagar) was established in 1673, with the permission of Nawab Shaista Khan, the governor of Bengal. In 1674, the French acquired the area of Pondicherry from the qiladar of Valikondapuram under the Sultan of Bijapur, and thus the foundation of Pondicherry was laid. By 1720, the French had lost their factories at Masulipatam, Surat and Bantam to the British.

On February 4, 1673, Bellanger, a French officer, took up residence in the Danish Lodge in Pondicherry and the French era in Pondicherry began. In 1674 François Martin, the first French Governor of the colony, started to build Pondicherry and transformed it from a small fishing village into a flourishing port-town. The French were in constant conflict, in India, with the Dutch and the English. In 1693 the Dutch took over and fortified Pondicherry considerably. The French regained the town in 1699 through the Treaty of Ryswick, signed on September 20, 1697.

Between 1720 and 1741, the objectives of the French were purely commercial. The French also occupied Yanam (about 840 km north-east of Pondicherry on the Eastern Coast) in 1723, Mahe on the Western Coast

For many, the French presence in India is a minor detail, a smattering of points on a large map dominated by British territorial markers. Well, not exactly. The French hold over India in a territorial sense may have been much more limited, but their relationship with India and their impression on India continues to this day – much before the inception of French East India company in 1664 through formation of Puducherry as the former chief settlement of France in India to the present day contribution in almost all spheres – literature, education, social, religion, or culture.

Tracing The

french rootsin india

Ravinder Bhatia

Page 99: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

BIZ@INDIA Special France-India 2013 99

of Malabar in 1725 and Karaikal (about 150 km or 93 miles south of Pondicherry) in 1739. From 1742, political motives began to trump the desire for commercial gain. All factories were fortified for the purpose of defence.

In the 18th century the town of Pondicherry was laid out on a grid pattern and grew considerably. Able Governors like Pierre Christophe Le Noir and Pierre Benoît Dumas expanded the Pondicherry area and made it a large and rich town. Soon after his arrival in 1741, the most famous French Governor of Pondicherry and all French India, Joseph François Dupleix began to cherish the ambition of a French Empire in India but his superiors had less interest. French ambition clashed with the British interests in India and a period of military skirmishes and political intrigues began. Under the command of the Marquis de Bussy-Castelnau, Dupleix’s army successfully controlled the area between Hyderabad and Cape Comorin. But then Robert Clive arrived in India in 1744, a dare-devil British officer who dashed the hopes of Dupleix to create a French Colonial India. Clive defeated Dupleix in a bloody battle and Dupleix was recalled to France in 1754 after the defeat and failed peace talks.

In spite of a treaty between the British and French not to interfere in local politics, the intrigues continued. For example, in this period the French were also expanding their influence at the court of the Nawab of Bengal, and expanding their trade volume in Bengal. In 1756, the French encouraged the Nawab (Sirajud-Daulah) to attack and conquer the British Fort William in Calcutta. This led to the Battle of Plassey in 1757 where the British decisively defeated the Nawab and his French allies, and extended British power over the entire province of Bengal.

Subsequently France sent Lally-Tollendal to regain the French losses

and chase the British out of India. Lally arrived in Pondicherry in 1758, had some initial success and razed Fort St. David in Cuddalore to the ground in 1758, but strategic mistakes by Lally led to the loss of the Hyderabad region, the Battle of Wandiwash, and the siege of Pondicherry in 1760. In 1761 Pondicherry was razed to the ground by the British in revenge and lay in ruins for four years. The French had lost their hold now in South India too.

In 1765 Pondicherry was returned to France after a peace treaty with Britain in Europe. Governor Jean Law de Lauriston set to rebuild the town on the old foundations and within five months 200 European and 2000 Tamil houses had been erected. In 1769, the French East India Company, unable to support itself financially, was abolished by the French Crown, who took responsibility for administering the French colonies in India. But the battle with the British continued and over the next 50 years Pondicherry changed hands between France and Britain with the regularity of their wars and peace treaties.

In 1816, after the conclusion of the Napoleonic Wars, the five establishments of Pondicherry, Chandernagore, Karaikal, Mahe and Yanam and the loges at Machilipattnam, Kozhikode and Surat were returned to France. Pondicherry had lost much of its former glory, and Chandernagore had been eclipsed as

HISTORY

Page 100: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Special France-India 2013 BIZ@INDIA100

Coins issued by French

a trading centre by the nearby British establishment of Calcutta (present-day Kolkata). Successive governors improved infrastructure, industry, law and education over the next 138 years.

By decree of the January 25, 1871, French India was provided with an elective general council (Conseil général) and elective local councils (Conseil local). The results of this measure were not very satisfactory, and the qualifications for and the classes of the franchise were modified. The governor resided at Pondicherry, and

was assisted by a council. There were two Tribunaux d’instance (Tribunals of first instance) (at Pondicherry and Karaikal) one Cour d’appel (Court of Appeal) (at Pondicherry) and five Justices de paix (Justice of the Peace). The agricultural produce consisted of rice, earth-nuts, tobacco, betel nuts and vegetables.

The independence of India in

August 1947 gave impetus to the union of France’s Indian possessions with former British India. The lodges in Machilipatnam, Kozhikode and Surat were ceded to India in October 1947. An agreement between France and India in 1948 agreed to an election in France’s remaining Indian possessions to choose their political future. Governance of Chandernagore was ceded to India on 2 May 1950, and then it was merged with West Bengal state on 2 October 1955. On November 1, 1954, the four enclaves of Pondicherry, Yanam, Mahe, and Karikal were de facto transferred to the Indian Union and became the Union Territory of Pondicherry. The de jure union of French India with India did not take place until 1962, when the French Parliament in Paris ratified the treaty with India.

Punjab ConnectionIt is generally believed that until

1947, France’s concern with India had been limited only to Pondicherry. In fact, India has had a fairly extensive French connection in the 18th and 19th centuries, particularly in Punjab. Maharaja Ranjit Singh had several French adventurers on his pay rolls who not only reorganized his army but also provided useful counsel on matters of State whenever require.

One may wonder, what were the French-for that matter Europeans-doing in the dominion of an Indian ruler and, that too, by holding important positions in the army. The fact is, the European mercenaries travelling to India in the 18th and 19th centuries in search of trade or scholarship were just the answer to many of the ills from which armies of the Indian princes suffered. The armies were undisciplined, ill-organized and unsuitable for warfare, which was undergoing a change in tactic and engineering, thanks to the European developments in warfare of the time.

TOTAL RECALL

1664 - French east india company founded

1667 - French india company sent out another expedition, under the command of françois caron (who was accompanied by a persian named marcara)

1668 - First french factory in india was established

1669 - Marcara succeeded in establishing another french factory at masulipatam

1672 - Saint thomas was taken but the french were driven out by the dutch

1673 - Chandarnagore (present-day chandannagar) was established with the permission of nawab shaista khan, the governor of bengal

1674 – French period of pondicherry began; francois martin, the first governor, started to build pondicherry

1693 – Dutch took over and fortified pondicherry

1699 – French regained the town through the treaty of ryswick

1720 – 41 – French occupied yanam on andhra coast, mahe on malabar coast andkaraikal

1742 - French factories were fortified for the purpose of defense

1756 - French encouraged the nawab (sirajud-daulah) to attack and conquer the british fort william in calcutta

1757 - Battle of plassey took place where the british decisively defeated the nawab and his french allies, and extended british power over the entire province of bengal

1758 - Lally-tollendal arrived in pondicherry to regain the french losses and chase the british out of india

1765 - Ondicherry was returned to france after a peace treaty with britain in europe

1816 - Five establishments of pondicherry, chandernagore, karaikal, mahe and yanam and the loges at machilipattnam, kozhikode and surat were returned to france

1871 - French india was provided with an elective general council (conseil général) and elective local councils (conseil local)

1947 - The independence of india gave impetus to the union of france’s indian possessions with former british india.

1948 - An agreement between france and india agreed to an election in france’s remaining indian possessions to choose their political future.

1950 - Governance of chandernagore was ceded to india

1954 - Four enclaves of Pondicherry, Yanam, Mahe, and Karikal were de facto transferred to the Indian Union and became the Union Territory of Pondicherry

History

Page 101: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

BIZ@INDIA Special France-India 2013 101

Maharaja Ranjit Singh’s army was no better. Most of these mercenaries were well-trained in military tactics and had sound experience of warfare, as was well demonstrated in the battle of Plassey (1757) in which a mere handful of trained and disciplined Europeans at the head of native forces made all the difference between victory and defeat.

Maharaja Ranjit Singh had, in all, 52 European officers in his army – English, Spanish, Greek, Russian, German, Austrian and French. Out of these, 16 were French; notable among them were General Ventura and General Allard. These two officers, in particular, were responsible for making the Maharaja’s, Fauj-I-khas a crack battalion which had many successful campaigns to its credit, such as we know in history.

This, though it might be discussed in an academic way, cannot be proved to be true, and it then remains to explain the reasons why the Maharaja, who was not particularly fond of spending

his money for nothing, entertained for seventeen years such an expensive staff for French generals, colonels and probably junior officers, if it was not for some practical benefits to his dominions. Only because of these debated problems, the case deserves again some consideration. But other aspects of the French presence in the Punjab have been neglected, if they were ever noticed.

French influence in IndiaCenturies of French intercourse did

not leave India altogether unaffected. Though France’s status as a prominent western power in India ended with in the 3rd Carnatic war and the Treaty of Paris in 1763, the French influence endured; their settlements remained centers of French culture. Even the name ‘Pondicherry’ was given by the French; from small beginning it grew up into a prosperous French settlement, nourished by French manners, customs and political practices. So was Mahe on the Malabar Coast.

The French influence spread over a wide area; they made the people of their settlements the citizens of France, conferring on them political equality. Political equality of the French conception was very realistic and they shared with the people what they enjoyed themselves. This helped them to imbibe the French culture with ease.

In the social and religious spheres, their contribution was of no mean order. The French East India Company was from the beginning inclined towards evangelical work as the Charter of 1664 bestowed on it perpetual sovereignty in Madagascar and the neighbouring islands on condition that it would work for the promotion of Catholic faith in them.

In South India the Capucine missionaries took up the lead in propagating the French faith and towards the closing years of the 17th century, the ‘Carnatic Mission’ the chief instrument through which the French evangelical work was conducted, took shape. They have to

their credit today the conversion of more than a million men and women of South India to Christianity.

The missionaries working in the society and moving closely with the masses have contributed much to the social uplift of the people. They had been able to clean up the social life to a great extent, by removing many of the meaningless and evil customs and manners.

Their humanitarian work also needs special mention. In this connection, the monumental work on the Hindu Customs and Manners by Abbe Dubois, one of the missionaries who came to India in 1792 needs special mention. This work of the immeasurable value to us, as it is the work says Mark Muleller, of a “man remarkably free from theological prejudices.

In the field of literature and education, the French contributed a great ideal. They built up educational institutions where local subjects were taught; a large number of schools and colleges sprang up under their initiative. Arokiawami writes-at least five colleges in Madras (now Chennai), Trichinopoly, Pulayom Cottah, Bangalore and Mysore and at least eight high schools and hundreds of elementary schools, convents, orphanages and industrial schools owe their existence to these French missionaries.

Their successors inspired by their example have built up an equal number of educational institutions in this part of the country. Father Tachard from Pondicherry speaks of a school of Pilotage in the 18th century in which training was given to boys who had a flair for the sea.

The French impact was most evident in the fields of literature and learning. The French show great interest in South Indian languages especially Tamil. To linguistics their contribution is great; the first Sanskrit grammar in a European language was published in French and in Paris. The names of Father Pous and Father Calmette are peculiar significance in the field of Sanskrit study. n

History

Maharaja Ranjit Singh

Page 102: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Media IndiaS

ubscrib

e No

w

I would like to subscribe BIZ@INDIA for 12 issues

First Name: Mr. a Mrs a Miss a ..................................................................................................Company Name.................................................................................

Address...............................................................................................................................................................Postal Code...................................City............................

Pays.....................................Tel. Res..................................(Office)....................................(Mob)...........................E-mail..........................................................................

I read BIZ@INDIA for Personal Reasons a Professional Reasons a

Afrique: 92€ a Malaisie: 440 MYR a EAU: 205 AED a Belgique: 77€ a Maurice: 3000 MRU a

RU:60 GPB a Canada: 110 CAD a Arabie Saudite: 205 SAR a Autres Europe: 85€ a France: 65€ a

Singapore: 195 SGD a Oman: RO 21 a Inde: 3000 INR a Suisse: 77€ a Autres GCC: 210 AED a

I am attatching my cheque in favor of “Media India” Address: BIZ@INDIA, Subscriptions, 12 rue d’lsly 75008 Paris, France

INDIA: 3000 INR a I am attaching my cheque in favor of “Lavanya Media Pvt. Ltd.” Address: BIZ@INDIA, Subscriptions, 1208, New Delhi House, 27, Barakhamba Road New Delhi-110001

Publication Director: Ranvir Nayar

Editor in Chief: Ranvir Nayar

Editorial Advisor: Rajendra Shende

Copy Editors: Elizabeth Frank, Jasleen Kaur

Editorial Team: Ameeta AgnihotriMegha BajajAnusha GillMireille - Joséphine GuézennecPriya GuptaSuhash JoshiNaren KarunakaranVenkata KrishnaAnil NairChristine NayagamGayatri RamanathanJasleen KaurAlexandre SeviranLucie SimonelManjeet SinghSandeep SilasShivani UnnikrishnanSamyukta Vatsaya

Graphics: Anita Channer, Pratap Singh, Shikha Bahuguna

Web: Manoj Upadhyay, Naman Bhatnagar

Photographers: Ira Gur-AryehIshan SharmaPiyush Sekhsaria SasShashi Sahai

URBAN DEVELOPMENT

URBANDEVELOPMENT

URBAN DEVELOPMENT

URBAN DEVELOPMENTURBAN DEVELOPMENT

CULTURE

CULTURE

FASHION

TOURISM

TOURISM

DEFENCE

DEFENCE

ENERGY

ENERGY

ENERGY

IT

CINEMA

CINEMAEDUCATION

EDUCATION CINEMA

FASHION

EDUCATIONTRADE

TRADEENERGY

TRADE

EMPLOYMENT

FOODPROCESSING

FOODPROCESSING

FOODPROCESSING DEFENCE

TOURISM

ITFOODPROCESSING

ENERGYINFORMATION TECHNOLOGY

INFORMATION TECHNOLOGY

INFORMATION TECHNOLOGY

INFORMATION TECHNOLOGY

BIZ@INDIA

Marketing:([email protected])

Richa Jain, Prasun Nagar,K. Ganesh

Corporate Communication:([email protected])

Marc Seviran

Head Office: 12 rue d’Isly 75008 Paris

Tel: 0033144698301

New Delhi (NCR): 1208, New Delhi House, 27, Barakhamba Road, New Delhi-110001

Telefax: 009111-43534818

Chennai: 8/1 State Bank Street, Mount Road, Chennai-600002

Tel./Fax: 00 9144 28455938

Bangalore: K.Ganesh

Tel./Fax: 00 91 8025658274

Published by: MEDIA INDIA GROUP

Capital:SIREN NO:

Press Commission:ISSN:

Depot Legal:

20 000 euros453 030 3710708 K 849141767-5952February 2013

Date of Publishing no 11: February 2013

Issue No. 11, Special France-India 2013

Page 103: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

116 bis avenue des Champs - Élysées 75 008 Paris - Tel. : +33 (0)1 40 76 56 49 - E-mail: [email protected]

DINNER & SHOW CHAMPAGNE & SHOW

THE FAMOUS CABARET

OF CHAMPS-ÉLYSÉES:

70 artistes on stage,

600 sumptuous costumes,

23 monumental sets...

Page 104: BIZ_INDIA_MAGAZINE_INDO_FRENCH_RELATIONSHIP

Indiatourism Paris:13 Boulevard HaussmannParis-75009Tel- 0033145233045 Email - [email protected]