Indo-French ties get energised

French President Francois Hollande visits India as guest of honour at the Republic Day parade on January 26. Is the visit a sign of the coming of age of Indo-French relations?

It's been almost two years to the date from Hollande's first visit to India as president. In the interregnum, a lot has changed around the world and in bilateral relations.

The world is confronted with its biggest geostrategic challenge in the shape of the Islamic State (IS), which has emerged as a major threat to peace and security around the world and whose agents have already carried out numerous attacks in France, the US and many other countries.

It has led to the biggest refugee crisis since Second World War. The situation of the world economy is hardly any better, as over the last year or so it has been rattled by the Chinese tsunami and a European economy that seems stuck in low, jobless growth, with very few bright spots, including India, which seem to be keeping the global economy afloat.

With its expected GDP growth of about seven percent this year, India has kept its place as the fastest growing large economy in the world for the second year running. Businesses from around the world, including France, are now looking at India with renewed expectations. Ever since India elected Narendra Modi as Prime Minister, there seems to be a new spring in the step of Indian relations with France.

Modi was in France twice in 2015, once on a bilateral visit in April and then again in November for the Climate Change Summit in Paris. Besides, Indian and French leaders have taken time out for bilateral discussions at practically all multilateral events like the UN General Assembly meeting in New York in September and the G20 meet in Antalya, Turkey, in November.

Anyone looking for signs of this new sense of purpose and direction in the relationship needs to only look at fresh movement in the long-pending deal over the purchase of the French Rafale multi-role medium range combat aircraft.

Modi sees a big role for the French in creating a real manufacturing hub in the country, especially in areas where the French are normally strong, notably railways, aviation, defence, automobile, nuclear power etc.

During his visit to France in April last year, Modi highlighted several times the focus of his government in improving the manufacturing sector and with several very aggressive incentive schemes to get the Indian private sector and foreign companies as well to invest more aggressively in order to boost the manufacturing capacities in the country.

Besides, Make in India, France is an equally good and logical partner for India in the implementation of several other projects that the country has been focussing on. One of the most important areas for enhanced bilateral cooperation in the urbanisation of India. In the smart city project, the French have already evinced interest in undertaking the work in three cities.

Another key area where France could lend a helping hand to India is the country's power sector, in conventional, nuclear as well as renewable energy sources. So far, the Indo-French business relationship remains overwhelmingly dominated by the behemoths, with very little engagement of the smaller companies, which ironically make up the bulk of both Indian and French economies.

The reluctance of more SMEs to trade or do business with each other has led to stagnation in Indo-French trade. The new focus areas of India could be the big breakthrough in this relationship. And that, in itself, is a good augury.